score drop of 12 points due to balance increase?

[Anonymous]

Hey all, I'm new here. So I received a notice from myfico saying my score dropped 12 points (down to 724) due the a utilization increase from 2% to 12%. So how is utilization calculated? Is it calculated when my payment is due, or averaged throughout the month? And do they prefer a microscopic balance like 2%? I noticed a jump in my score when I had it at 2. I've always been told keep it at 1/3rd.

[Gunnar419]

Util is in almost all cases based on what's on your statement each month.

FICO scoring looks at both the util on individual cards and overall util.

The advice you've gotten in the past about keeping all cc balances below 30% is okay for general consumption, but the rule for those (like us) who are serious credit watchers is this: let all your credit cards EXCEPT ONE report zero statement balances and let the remaining one report a balance somewhere between 1% and 9% (the sweet spot varies from person to person.)

[Anonymous]

Excellent advice, thanks. So the month before last I went up to 30% and then paid it down to 2% a few days before it was due. They only see the 2% correct?

[mclaughh]

correct