Credit Utilization 0% bad for Credit Score?

[Lamdan]

I have an account with Credit Karma, and they give you a report card on each factor of the credit score. They say my grade is C in the Credit Utilization area because I use 0% of my credit. I have over $60,000 credit and being that I didn't use over $600 I didn't reach 1% utilization and I have a C grade. If I would use over $600 I would then be utilizing over 0% and I would grade A in that area. Was wondering if they're right about this, it doesn't seem to make sense. why if i do use my credit yet not 1% should it be reflect badly on your credit score?

[Dan]

Kredit Karma=FAKO.

[Lamdan]

Kredit Karma=FAKO.

Cute kid. Cute post. But are they right about this? I remember you once wrote that you reguraly pay off your bills throughout the month, which seems to me you believe that under 1% is not a problem.

[Dan]

Thanks.
Pay for a real FICO score from myfico when you're at 0% and 1% and let us know what really happens.

[HelpMe]

Thanks.
Pay for a real FICO score from myfico when you're at 0% and 1% and let us know what really happens.

This was done by a member of CB and his score was a few points higher.

[creditor]

I have an account with Credit Karma, and they give you a report card on each factor of the credit score. They say my grade is C in the Credit Utilization area because I use 0% of my credit. I have over $60,000 credit and being that I didn't use over $600 I didn't reach 1% utilization and I have a C grade. If I would use over $600 I would then be utilizing over 0% and I would grade A in that area. Was wondering if they're right about this, it doesn't seem to make sense. why if i do use my credit yet not 1% should it be reflect badly on your credit score?

its true that on credit carma it works that way but thats only for the TU score they give you,
IME I had the same thing with them but my real FICO score was the same at 0 balance upto 5% ratio

[Name Changed]

Kredit Karma=FAKO.

+1

Your FICO score is your true score

[AsherO]

@OP, I understand you have $60k in aggregate, but what is/are the CL(s) on the card(s) you've got the $600 balance(s) on?

[HelpMe]

Your FICO score is your true score

Not always. Your “true score” would be the one the FI uses to make their credit decision.

[AsherO]

Not always. Your “true score” would be the one the FI uses to make their credit decision.

They use a myriad of other factors (call it a modified score or whatnot), the score isn't all they use. But I agree, FICO would be more accurate in predicting approval, albeit marginally IMHO.

[Dan]

Not always. Your “true score” would be the one the FI uses to make their credit decision.

The FIs scoring typically incorporates and pulls FICO.  They are definitely not using Credit Poppyseed or whatever else the other bloggers are trying to shill for that day.

[AsherO]

The FIs scoring typically incorporates and pulls FICO.  They are definitely not using Credit Poppyseed or whatever else the other bloggers are trying to shill for that day.

Love it!

[Lamdan]

@OP, I understand you have $60k in aggregate, but what is/are the CL(s) on the card(s) you've got the $600 balance(s) on?

20k on the 3 cards i spent on

[HelpMe]

The FIs scoring typically incorporates and pulls FICO.  They are definitely not using Credit Poppyseed or whatever else the other bloggers are trying to shill for that day.

While they are getting the info from the big three they are not pulling their score like they use to. Many FI’s are going to their own internal scoring models but the info comes from the big three. While Transrisk and Vantagescore are not true FICO’s they are based on legitimate info.

[AsherO]

20k on the 3 cards i spent on

Unless one of them was over-utilized (e.g. $250 of a $500 CL) then there's no plausible explanation for what you've told us, the way I see it.

[AsherO]

While they are getting the info from the big three they are not pulling their score like they use to. Many FI’s are going to their own internal scoring models but the info comes from the big three. While Transrisk and Vantagescore are not true FICO’s they are based on legitimate info.

Aren't all FAKOs based on true info (i.e. info actually in your credit file)?

The way I see it, if it isn't FICO, it's FAKO.

[creditor]

Unless one of them was over-utilized (e.g. $250 of a $500 CL) then there's no plausible explanation for what you've told us, the way I see it.

you SHOULD be right, but credit carma works that way that the  "grade" you get by 0% utilization is the same grade as you get by over 10% util , doesn't make sense but thats the fact [on their scoring sys]

[AsherO]

you SHOULD be right, but credit carma works that way that the  "grade" you get by 0% utilization is the same grade as you get by over 10% util , doesn't make sense but thats the fact [on their scoring sys]

It wouldn't explain why you had the same score at 0% and at 5%.

[Lamdan]

you SHOULD be right, but credit carma works that way that the  "grade" you get by 0% utilization is the same grade as you get by over 10% util , doesn't make sense but thats the fact [on their scoring sys]

+1. It seems it's a machlokes between Chashuvei DDF and Credit Karma.

[Lamdan]

I wish I could edit the topic title to include a question mark like this "Credit Utilization 0% bad for Credit Score?".