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Question By
IrishMoss

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improving Credit Card Utilization didn't help score?
I previously had 0% credit card utilization. I thought paying off cards and having a zero balance was actually a good thing. When I saw in my credit report that I had a 'C' for 0% utilization, I started putting a small amount of charges on the cards. Now I have 2% utilization, and my Credit Card Utilization is now listed as 'A', yet my credit score didn't improve a single point.
There were no other changes in my credit report that would counter this improvement.
It specifically says "This factor has a HIGH impact on your credit score", yet improving it 2 grade levels didn't yield any credit score improvement.
What am I missing?

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Top Contributor
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There can be many factors

Helpful to 1 out of 1 people

Plus scores evolve over time. there is no instant correction on credit scores. 

another factor may be your mix of credit types, i.e. credit cards, personal & auto loans  (installment loans) and mortgages.

If you only have 1 type of available credit it will hold your score down.  0-2% utilization is indeed very low, but that doesn't show creditors that they  can make money off of you, that will hold your score down as well. 

Creditors actually like to see you use your cards a lot and make big payments, that will have a bigger impact on raising your score. 

Good Luck

Reply by
IrishMoss

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Thanks for the reply.

So if I'm understanding this correctly, the letter grades we're getting in various catagories is something that's coming from credit karma, and not from transunion.

Basically meaning it's credit karma's guess at what will help, but really isn't any direct indicator as to what the credit agency thinks.

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