The Master $2 reporting "trick" explained

[mendelssohn]

What does rebucketing mean? I have a paid collection deleting this month but my util was 3% last month anyway. Would like something to offset 2 new accounts I opened this month (both CCs). My overall cl is $4000 now instead of $2700 last month. But $2300 is my dad's cc so we'll see.

 

It means that FICO will put you on a different scorecard. They have different scorecards and each has a possible score range, and basically your FICOs are determined by comparing your profile to others with a similar profile within the scorecard.

[HeatFan2015]

So with my 1 collection account and 9 months since last late pay, i won't be re-bucketed for awhile if i continue to maintain $2 method, e,g late pays are way older/off reports, and no collections?

Edited September 16, 2015 by Cmike241

[mendelssohn]

So with my 1 collection account and 9 months since last late pay, i won't be re-bucketed for awhile if i continue to maintain $2 method, e,g late pays are way older/off reports, and no collections?

 

As long as you have negatives reporting, including late pays, you will not be in the bucket that rewards you the most for low utilization. That doesn't mean that you shouldn't get in the habit now of keeping utilization low though.

[HeatFan2015]

 

So with my 1 collection account and 9 months since last late pay, i won't be re-bucketed for awhile if i continue to maintain $2 method, e,g late pays are way older/off reports, and no collections?

As long as you have negatives reporting, including late pays, you will not be in the bucket that rewards you the most for low utilization. That doesn't mean that you shouldn't get in the habit now of keeping utilization low though.

[HeatFan2015]

Cool.

[DiegoC]

Mendels

The last late i have do to a divorce is 1 year 4 months for a stupid $10 min payment at Macys. If i bring down all my cards to $0 and leave the $2 in one, will it still rebucket?

 

 

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[mendelssohn]

No, but you'll get as many points as possible for utilization anyway. This works best with clean reports (not even a late payment).

 

The good news is that when the late hits 2 years you should see a slight bump.

[DiegoC]

Im fighting the late however i was told that after a year i would see a bumb, so does that mean that every year it bumps up

 

 

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[HeatFan2015]

Just hit 1% utilization on 32,300 CL. EX +14, from 648, 3 weeks ago (had 5% utilization), should be able to maintain 1% for forseeable future. Hopefully next bump comes from my last late pays, 5 student loans, going 12+ mths in January 2016, probably should get a hobby till then.

[DiegoC]

OK Mendels need some help here cause I don't think I did this correctly.

 

 

this is my daughters account so she has

 

1- AU Revolver $2.00 balance

1- AU Revolver $0.00 balance

 

Her own CC

Citi Best Buy Revolving $0 balance

Chase Freedom Revolving $0 balance

Comenity VS Revolving $0 balance

Discover Revolving $0 balance

Amex Everyday CC Revolving $0 balance

 

Now I'm hoping the picture post its my first time posting a pic, if it doesn't come out it shows 0% Utility with the $2.00 credit balance

 

So did I mess up by making the AU leave the $2 balance?

[Krish]

OK Mendels need some help here cause I don't think I did this correctly.

 

 

 

this is my daughters account so she has

 

1- AU Revolver $2.00 balance

1- AU Revolver $0.00 balance

 

Her own CC

Citi Best Buy Revolving $0 balance

Chase Freedom Revolving $0 balance

Comenity VS Revolving $0 balance

Discover Revolving $0 balance

Amex Everyday CC Revolving $0 balance

 

Now I'm hoping the picture post its my first time posting a pic, if it doesn't come out it shows 0% Utility with the $2.00 credit balance

 

So did I mess up by making the AU leave the $2 balance?

What are you expecting? Score at 848?

Score depends on several factors among which utilization is one. AAOA is a major factor along with types of credit.

[DiegoC]

No since we run all utilization low on all our accounts i just wanted to know if i did it correctly cause it didnt show 1% utilization

 

 

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[DiegoC]

Hey i thought it was Mendels replying... I never asked why wasnt her score higher, i just asked if i didnt it correctly.

 

Read before you comment. !!

 

 

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[mendelssohn]

It's correct. That's not being counted as 0% really.

[scarchelli]

Mine was like that too last month. I was at $75 of $17500 and it said 0% but it was really 1% I believe, in terms of how it was scored.

[DiegoC]

So heres DW account...

 

 

As you can see by the $342 Credit it has a $2 and a Macys which doesn't want to update..

 

Just waiting to see if those $300 make a difference but not expecting to be at 848

[mendelssohn]

B*

[JeffeVerde]

Mine was like that too last month. I was at $75 of $17500 and it said 0% but it was really 1% I believe, in terms of how it was scored.

 

I'd guess it's a rounding issue. 75 is 0.428% of 17,500. Because it was less than 0.5, they rounded it down to 0%. Shoot for a balance of $100 next time (0.57%), and see if it doesn't round up to 1%

[DiegoC]

Mendels

 

I think the $2 trick hurt my score, let me know what you think.

 

I did a study on my credit for the past 4 months and my EX went from 745 to 687

 

I added everything in an excel sheet and there are couple of things that trend my score downward.

 

1 is that I added a Cap 1 Venture 3 months ago and it has always been at $0, I haven't let it cut with a balance.

 

2nd my Utilization was at 17% and now its at 5% with the majority of the cards at 0% and just a few with some balances. So you have stated before that having some cards report at 0% could ding my score if we did not a clean record.

 

Could this be whats happen?

 

Also I have disputed some baddies how if I had a fraud alert can that affect my score so much and for more than 2 months?

 

Thanks

DC

[Kat58]

Mendels

 

I think the $2 trick hurt my score, let me know what you think.

 

I did a study on my credit for the past 4 months and my EX went from 745 to 687

 

I added everything in an excel sheet and there are couple of things that trend my score downward.

 

1 is that I added a Cap 1 Venture 3 months ago and it has always been at $0, I haven't let it cut with a balance.

 

2nd my Utilization was at 17% and now its at 5% with the majority of the cards at 0% and just a few with some balances. So you have stated before that having some cards report at 0% could ding my score if we did not a clean record.

 

Could this be whats happen?

 

Also I have disputed some baddies how if I had a fraud alert can that affect my score so much and for more than 2 months?

 

Thanks

DC

 

First off, if you had "a few" accounts with balances, you weren't doing the $2 trick.

 

Having ALL accounts report $0, can possibly ding your score.

 

If your UT went from 17% -> 5%, that would cause a score boost.

 

Depending on what you're disputing, it could possibly affect your AAOA, etc. (just guessing)

 

More importantly... Where are you getting your scores? Have they been from the same source, for the past 4 months?

 

Sorry in advance, if I didn't understand some of your questions.

[mendelssohn]

 

Mine was like that too last month. I was at $75 of $17500 and it said 0% but it was really 1% I believe, in terms of how it was scored.

I'd guess it's a rounding issue. 75 is 0.428% of 17,500. Because it was less than 0.5, they rounded it down to 0%. Shoot for a balance of $100 next time (0.57%), and see if it doesn't round up to 1%

It may say 0% but it wasn't counted as 0%. No need to let more report.

Mendels

 

I think the $2 trick hurt my score, let me know what you think.

 

I did a study on my credit for the past 4 months and my EX went from 745 to 687

 

I added everything in an excel sheet and there are couple of things that trend my score downward.

 

1 is that I added a Cap 1 Venture 3 months ago and it has always been at $0, I haven't let it cut with a balance.

 

2nd my Utilization was at 17% and now its at 5% with the majority of the cards at 0% and just a few with some balances. So you have stated before that having some cards report at 0% could ding my score if we did not a clean record.

 

Could this be whats happen?

 

Also I have disputed some baddies how if I had a fraud alert can that affect my score so much and for more than 2 months?

 

Thanks

DC

$2 on one card only.

[ZeRo_C0oL]

I've been trying to explain to my S.O. why this trick works and didn't really even understand for myself... so thank you for allowing me to send her a link!

[DiegoC]

Mendels i didnt mean to jack your thread. In reality obliviously im not doing the $2 trick but i was trying however theres an old account that was transferred for HSBC to Cap 1 that still reports a balance.

The majority of the accounts are at $0 except 1 or 2.

 

Im going to start another thread with the excel file so you guys can maybe see whats going on.

 

 

 

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[Cappy]

I was just thinking of something.

 

On Discover if you let your statement close at $2, Discover will credit you back the $2 hence making your balance at $0 to report and $2 for free.

 

If one month you accidentally pay off everything and nothing's reporting, you could just use your card for $2 and wait until it posts and call discover and ask them to report it at the current balance. Within a few days, your scores will go right back up.

 

Not saying this is ideal, but just a thought.

[Konrad2012]

I was just thinking of something.

On Discover if you let your statement close at $2, Discover will credit you back the $2 hence making your balance at $0 to report and $2 for free.

If one month you accidentally pay off everything and nothing's reporting, you could just use your card for $2 and wait until it posts and call discover and ask them to report it at the current balance. Within a few days, your scores will go right back up.

Not saying this is ideal, but just a thought.

or put $2 on BofA and get a CLI. They'll be sure to insta-report it.