$2 trick to increase FICO score.

[Mendelssohn]

I'm going to answer this separate from the $2 trick, because you should not be using charge cards for the $2 trick.  If you want to do the $2 trick, charge cards need to report $0.  There is more information on this at CB and I have not really followed it too much, because my charge cards typically report $0.

Most FICO scoring models do not assign a limit to charge cards and will count the reported balance against your total utilization, but individual utilization is not calculated.

In some cases, IIRC EQ 04, FICO will calculate individual utilization as well and use the recent high balance as the credit limit.  Of course, if this number is $50K or higher, FICO ignores the individual utilization just like with CCs.

[Zalc]

I'm going to answer this separate from the $2 trick...

in some cases, IIRC EQ 04, FICO will calculate individual utilization as well and use the recent high balance as the credit limit.  Of course, if this number is $50K or higher, FICO ignores the individual utilization just like with CCs.

While you are in the subject, would it be good to let the charge card's statement post once with a very large balance, so like that if a balance ever posts unexpectedly, the system won't think you are at 100% util of that card?

Also, would it lower your util across all cards?

[Mendelssohn]

While you are in the subject, would it be good to let the charge card's statement post once with a very large balance, so like that if a balance ever posts unexpectedly, the system won't think you are at 100% util of that card?

Also, would it lower your util across all cards?

It would count with overall utilization with a very large balance, but individual utilization would not be counted in any scoring model (not sure about FICO 9, but nobody uses them yet).

If you have the ability to let a $50K+ balance report, you could do it if you wanted.  I wouldn't recommend it unless you have a fair amount of available credit though.

[Zalc]

It would count with overall utilization with a very large balance, but individual utilization would not be counted in any scoring model (not sure about FICO 9, but nobody uses them yet).

If you have the ability to let a $50K+ balance report, you could do it if you wanted.  I wouldn't recommend it unless you have a fair amount of available credit though.

Thanks!

So if a $50k+ balance reports once, the charge card will never count against overall Util regardless of the statement balance? Do we know what scoring models this works for?

If I have $90k available credit, will letting such a high number post affect my score beyond that one month?

[Mendelssohn]

Thanks!

So if a $50k+ balance reports once, the charge card will never count against overall Util regardless of the statement balance? Do we know what scoring models this works for?

If I have $90k available credit, will letting such a high number post affect my score beyond that one month?

It will never count in individual utilization.  I'm not sure of the long term time frame using the high balance. It always counts in overall utilization. 

There is a thread on CB now with one of the members testing this.  I will link it here when he updates.

$90K is not really that much, and I wouldn't recommend it personally.

[Zalc]

There is a thread on CB now with one of the members testing this.  I will link it here when he updates.

Ok thank you!

Would you be able to link the thread here, and I'll follow it over at CB?

[Mendelssohn]

Ok thank you!

Would you be able to link the thread here, and I'll follow it over at CB?

Sorry, I was mistaken.  His thread is about cards with no preset spending limit.  It will still be a good thread to follow though.

https://creditboards.com/forums/index.php?showtopic=564887

[eli1571]

About how much of a difference would this make ? I know it's impossible to answer but just roughly.

[Mendelssohn]

About how much of a difference would this make ? I know it's impossible to answer but just roughly.

There is no way to tell.

It helps most people with clean reports that are fairly young.

If you have negatives on your reports, you won't see much if any difference.

[eli1571]

There is no way to tell.

It helps most people with clean reports that are fairly young.

If you have negatives on your reports, you won't see much if any difference.

Thanx, don't have any negatives, But can't hurt to get a better score.

[eli1571]

Btw does doing a balance transfer have a negative effect on a credit score ?
If yes any more then just carrying a balance on the original card ?

[JTZ]

Btw does doing a balance transfer have a negative effect on a credit score ?
If yes any more then just carrying a balance on the original card ?

Same as carrying a balance.

[Cappy]

Charge Cards: I recently had MY PRG AF posted and it was the only thing reporting and I took a nice hit on my fico.

FICO saw it as having nothing reporting, hence why I took a hit...

I'm sure you guys are wondering what if you have a charge card and a $2 on one account reporting if that would work since only 1 individual card is considered reporting.

The answer is NO...

[Cappy]

Here's a thread on it

https://creditboards.com/forums/index.php?showtopic=557648

[Zalc]

Here's a thread on it

https://creditboards.com/forums/index.php?showtopic=557648

Thanks, was quite helpful.

[noturbizniss]

Sooo...yesterday DWs was 813 today it is 790. Below are 2 screenshots. The differences are that it looks like 7 AU cards were removed, and 2 cards with $112 on them reported new balance as $0, and a single card has a balance of $1.  (It's CC, fidelity amex, closed with $1.99).  Is this in fact why it dropped (the model counts $1 as 0) or is it something with removing the accounts (don't see why that should impact - AAOA went up actually).

[Josef.koney]

Thanks for the wiki !  That helps tonz !  every time a friend asks me now I have a place to send him instead of explaining it 😃 thx !

[GettingReady]

Thanks for the wiki !  That helps tonz !  every time a friend asks me now I have a place to send him instead of explaining it 😃 thx !

Agreed. The info is very clear and concise. Even I can understand it, thus it must be at a 3rd grade level versus the usual 5th grade level. 

[Mendelssohn]

Sooo...yesterday DWs was 813 today it is 790. Below are 2 screenshots. The differences are that it looks like 7 AU cards were removed, and 2 cards with $112 on them reported new balance as $0, and a single card has a balance of $1.  (It's CC, fidelity amex, closed with $1.99).  Is this in fact why it dropped (the model counts $1 as 0) or is it something with removing the accounts (don't see why that should impact - AAOA went up actually).

Too many factors changed.  Don't blame the $2 trick.

[noturbizniss]

Too many factors changed.  Don't blame the $2 trick.

That's what i figured. Hopefully next month eveything stays the same (except maybe AAOA going up) and the score goes back up.

Is the $1 reporting good for this trick?