Ok so my Transunion score was 651 and now 644 and the only thing that changed was my 2 credit cards were updated on report. One wit a balance of $20 n the other $0. My Debt to Credit ratio is 3%... I thought if it was under 10% my score will raise each month?
What were your balances updated from? If you were already under a 10-15% utilization ratio, you probably won't see much of a change. Keep making on-time payments and that's when you'll begin to see a gradual increase over time.
But it dropped 7 points... It was on time. I thought if it was under 10% it wouldn't drop my score, I don't understand now. Should I keep the balance at $0 on both my credit cards, I thought having a small balance was good cuz it showed u used ur card responsib
What were your previous balances? I wouldn't get too hung up on a change of 7 points, up or down. There are a lot of variables that go into a FICO score and things change all the time. What you can be sure of is that your low credit utilization didn't drop your score. There must be something else going on. Oh, and it's a credit myth that keeping a small balance is a good thing to do and will improve your credit scores. Never has, never will. Pay your cards in full and on time each month. That's always the best way to manage credit cards.
Well i have 2 credit cards, The last month it was reported one card showed 0$ balance which is the one that reports $20 now... Then the other card reported $14 balance while it reports $0 now. I tried keeping a small balance on one card to improve score but obviously it didn't work so ill go with your method and just pay em both in full each month so they always report a $0 balance. i was trying to get my Transunion score over 660 before i purchase a home in January. My Equifax score isn't as high but my Experian reports almost exactly the same as my Transunion report and though i don't know the Real fico for that im hoping its close to Transunion. Home loan lenders do choose the Middle score right? no matter if its a FHA, USDA, Homepath, etc...
Based upon the numbers you're giving us, I'm guessing you have fairly low credit limits, which means even a small fluctuation in your balance can really affect your CU ratio. Use the cards sparingly, pay in full every month, keep the balances at zero, and that's really the best thing you can do for your scores. Oh, and different lenders will have different procedures regarding credit scores, so it would best to talk to your potential lenders and find out how they determine the number they use. You may get different responses.
