20 Point FICO Hit when all my CCs reported 0 balance.

[cashnocredit]

Just to give folks an idea why it isn't a good idea to have 0 balances report on all your credit cards. I had one card reporting $800 which was paid and just reported 0. TU FICO 8 dropped from 822 to 802.  FICO scores don't like all your CCs reporting 0 balance.  OTOH, I don't pre-pay but I've been using Amex in the last few months and had Amex reporting 20k. Charge cards don't affect FICO scores. It was just paid and reported 0 balance. No change in FICO. Still at 802. Usually Verizon will show up on a CC but didn't this time. Fell through the cracks between closings.

[hdporter]

Hit sounds consistent with prior reports.  Saving grace is that as soon as you report a balance, the hit should fully reverse.

Makes sense that charge cards aren't a factor with respect to the credit factor involved here.  I hadn't considered this before.

[IndyPoolPlayer]

I've gotten close but seem to always forget one or use a card 2-3 days before closing and it hits on closing date. Right now according to the Random Reason Generators they're dinging me because of my recent mortgage refinance.

[goldtrad]

Been a while since I cared. IF I understand correctly credit cards with a limit over 30K do not report usage? Right?

[cashnocredit]

5 hours ago, goldtrad said:

Been a while since I cared. IF I understand correctly credit cards with a limit over 30K do not report usage? Right?

Last time I remember this being tested it was a bit below 50k CL on CCs. Charge cards have never impacted FICO scores possibly because they don't report a CL.

[cv91915]

7 hours ago, cashnocredit said:

Last time I remember this being tested it was a bit below 50k CL on CCs. 

From all of my conversations on CB, I've always believed that the threshold is somewhere in the $40,000s.  

 

I don't recall ever seeing anyone present evidence that they found the actual number, but of course my memory isn't infallible.

 

I'd love to know the answer.

[goldtrad]

Hmm. I have a Citi Double Cash with a 35K limit and when I just use it I get a ding for no credit card usage. 

[hdporter]

On 2/18/2021 at 3:53 PM, cv91915 said:

From all of my conversations on CB, I've always believed that the threshold is somewhere in the $40,000s.  

I don't recall ever seeing anyone present evidence that they found the actual number, but of course my memory isn't infallible.

 

I'd love to know the answer.

 

There was an extended related discussion ages ago in which I participated in (I haven't been successful in searching for it).  I reviewed periodic myFICO bureau reports over a number of months because my utilization percentages diverged considerably from the values calculated based on actual outstanding limits/balances.  The discussion at that time suggested that the CRA's excluded high limit credit card accounts from the utilization calculation so as to avoid a distortion from HELOC accounts, which the algorithm wasn't able to segregate out.  However, each CRA applied a different limit threshold.

 

What I remember from that discussion was that TU used a $35k cap while EX used a $50k cap.

I believe this discussion took place sometime in the period 2008-2012 and was likely FICO 2/4/5 score based.

[MP80]

3 hours ago, hdporter said:

What I remember from that discussion was that TU used a $35k cap while EX used a $50k cap.

I think you may be correct about the $35K credit limit mentioned in the TransUnion report, and any amount over $35K will look like the screenshot below... 

 

My other screenshot is of the $30,000 CapOne card, which does not show the credit limit as my Discover card.

 

 

 

This confirmed TransUnion capped at $35K.  

Edited February 20 by MP80

[hdporter]

2 hours ago, MP80 said:

I think you may be correct about the $35K credit limit mentioned in the TransUnion report, and any amount over $35K will look like the screenshot below... 

 

My other screenshot is of the $30,000 CapOne card, which does not show the credit limit as my Discover card.

 

 

 

 

I hadn't noticed this difference before.  Can you also do a screen shot of the "header" section, beginning with the "Date Open" line.  (I understand if you don't want to display anything that might potentially open the account to compromise.)

 

What I'm after is that this is where the current credit limit is displayed.  I'm curious if there's any difference in the verbiage for these two accounts.

[MP80]

I can attest to you that there is no credit limit shown on the header for accounts over $35K, "but the account history shows a high balance" on the header.

 

Obviously, accounts below $35K do manifest a credit limit on the header, plus the "high balance in the account history."

[MP80]

2 hours ago, MP80 said:

I can attest to you that there is no credit limit shown on the header for accounts over $35K, "but the account history shows a high balance" on the header.

 

Obviously, accounts below $35K do manifest a credit limit on the header, plus the "high balance in the account history."

There is only a green Amex charge card in the header "without any content," but it shows a high balance, which is where the Discover credit limit remains. 

 

 

Here's the green Amex charge card...
Haha... Just like the Disco.  

[hdporter]

That's an interesting find.  I would imagine you're correct, the suppression of the credit limit from the history is a good indication that the account isn't included in calculation of revolving utilization.  It also sounds like your evidence supports the idea that $35k is the cutoff for TransUnion.

 

I wonder if EQ and EXP have similar telltale indications re their respective cutoffs.  It would be interesting if others would contribute supportive information.  (I'll follow up, but I'm off to bed now ...)

[goldtrad]

I think Equifax has to be under 35K maybe even 30K for reporting usage on a credit card because the vast majority of my cards that provide a FICO score always ding me for no credit card usage when I used the Citi 35K card. Thanks sorry for the hijack.

[MP80]

15 hours ago, hdporter said:

That's an interesting find.  I would imagine you're correct, the suppression of the credit limit from the history is a good indication that the account isn't included in calculation of revolving utilization.  It also sounds like your evidence supports the idea that $35k is the cutoff for TransUnion.

Haha... No, it was not me, but thanks! I merely provide the screenshot.

 

It was you who provided information about the cutoff credit limit of TransUnion. It made me look at my report curiously. Therefore, thanks to you, we can get more credit report data information.  

[Burgerwars]

On 2/14/2021 at 7:35 PM, cashnocredit said:

Just to give folks an idea why it isn't a good idea to have 0 balances report on all your credit cards. I had one card reporting $800 which was paid and just reported 0. TU FICO 8 dropped from 822 to 802.  FICO scores don't like all your CCs reporting 0 balance.  OTOH, I don't pre-pay but I've been using Amex in the last few months and had Amex reporting 20k. Charge cards don't affect FICO scores. It was just paid and reported 0 balance. No change in FICO. Still at 802. Usually Verizon will show up on a CC but didn't this time. Fell through the cracks between closings.

It happens to me. I have a boatload of credit cards, but only use a few, except when I rotate through the other cards buying pencils, to keep them active. When some of those cards start showing balances, my FICO goes up a bit, and then drops.

It's nothing I'm concerned about. Nothing I can do about it. My score is in either case over 800, but about 15 or so points higher when there's activity.

[hdporter]

On 2/20/2021 at 1:11 PM, MP80 said:

Haha... No, it was not me, but thanks! I merely provide the screenshot.

 

It was you who provided information about the cutoff credit limit of TransUnion. It made me look at my report curiously. Therefore, thanks to you, we can get more credit report data information.  

 

In any case, I'll return to this topic when I've had a chance to do some report review and provide some insight more timely than 10 year old reveries ...

[distantarray]

On 2/18/2021 at 3:53 PM, cv91915 said:

From all of my conversations on CB, I've always believed that the threshold is somewhere in the $40,000s.  

 

I don't recall ever seeing anyone present evidence that they found the actual number, but of course my memory isn't infallible.

 

I'd love to know the answer.

I have a $45k+ Chase Ink business card, so does this mean it shouldn't report the limit if I apply for another business card on my business credit?

[DPB]

13 hours ago, distantarray said:

I have a $45k+ Chase Ink business card, so does this mean it shouldn't report the limit if I apply for another business card on my business credit?

Chase doesn’t report business cards to your personal credit reports. It may or may not appear on your business credit report, but business credit reporting is governed by completely different rules than personal credit reporting. 

[cashnocredit]

As expected, Amex reporting 0 balance made no difference but a new CC balance of $1200 increased score back up from 802 to 822. So the zero total CC balances don't have any history effect and scores return immediately when a non zero balance reports.

[Lander]

Aren't you supposed to leave like $2 balance reporting?

[distantarray]

On 2/22/2021 at 7:37 PM, Lander said:

Aren't you supposed to leave like $2 balance reporting?

2% is optimal not $2   if you have $500 limit you want it to report $10  if you have $10,000 you want $200 so on

Edited Wednesday at 10:01 PM by distantarray

[DPB]

On 2/24/2021 at 5:00 PM, distantarray said:

2% is optimal not $2   if you have $500 limit you want it to report $10  if you have $10,000 you want $200 so on

Incorrect. It’s called “The $2 trick” for a reason. 

[distantarray]

18 hours ago, DPB said:

Incorrect. It’s called “The $2 trick” for a reason. 

I'm not too sure, i've tried that in the past and i always yielded better results with 2%. hit 826 doing this on Fico04 with $2 I was at 796

[DPB]

3 hours ago, distantarray said:

I'm not too sure, i've tried that in the past and i always yielded better results with 2%. hit 826 doing this on Fico04 with $2 I was at 796

A simple search of this forum will show that you are incorrect.

If you attempted this and yielded a different result, user error is almost certainly the reason.