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What do you do?  Let $2 report on a single credit card.  All of your other cards should report $0, which means you must pay them to $0 before the statements close.

Why $2?  Because you want the lowest amount possible to report that is greater than $0.  $2 is the most reliable number to use that will generally report and not be credited to $0.

Does this work with any cards? Do not do this with Chase, Discover or charge cards.  Chase often updates mid cycle if you pay a balance to $0, leaving you with nothing reporting.  If you want to use Discover, you need to use $3 because they will credit $2 to $0.  Charge cards are counted much differently for utilization, and it varies by scoring model.

But MyFico and CreditKarma say that my utilization is 0%.  Credit Karma is a FAKO, and although even MF will give you this number as a percentage, it is calculated as a ratio by FICO.  $2 counts as usage.

What is the goal of the $2 trick?  The goal is to get the most points possible out of FICO for the utilization portion of your scores AND to maintain it all the time.  The "all the time" part is the reason you don't use Chase cards.


More Detailed Explanation At CreditBoards

https://creditboards.com/forums/index.php?showtopic=544017

$2 Trick Will Not Work With A Charge Card https://creditboards.com/forums/index.php?showtopic=557648

« Last edited by Mendelssohn on April 12, 2016, 12:43:40 PM »

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Author Topic: $2 trick to increase FICO score.  (Read 114678 times)

Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #480 on: April 14, 2016, 11:18:27 AM »
Quote from: noturbizniss on April 14, 2016, 11:15:51 AM
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?
Any amount reporting should work. If you feel adventurous next month have the cards report with the exact same amounts (225) and see if your score goes up.  ;)
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Offline noturbizniss

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Re: $2 trick to increase FICO score.
« Reply #481 on: April 14, 2016, 11:19:45 AM »
Quote from: JTZ on April 14, 2016, 11:18:27 AM
Any amount reporting should work. If you feel adventurous next month have the cards report with the exact same amounts and see if your score goes up.  ;)
That's my plan. If that's the only thing that changes and it does not go up ill up it to $2
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #482 on: April 14, 2016, 11:39:47 AM »
If you found a card that reports $1, then by all means use that card.  The idea is to have the smallest amount possible report that is greater than $0.
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Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #483 on: April 14, 2016, 11:55:58 AM »
Quote from: noturbizniss on April 14, 2016, 11:19:45 AM
That's my plan. If that's the only thing that changes and it does not go up ill up it to $2
Then up it to the 225 you had across three cards. Take one for the team.  :)
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Offline newdealseeker

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Re: $2 trick to increase FICO score.
« Reply #484 on: April 14, 2016, 12:42:35 PM »
Quote from: Mendelssohn on April 14, 2016, 11:39:47 AM
If you found a card that reports $1, then by all means use that card.  The idea is to have the smallest amount possible report that is greater than $0.
I was wondering how it reported at $2...
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Offline noturbizniss

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Re: $2 trick to increase FICO score.
« Reply #485 on: April 15, 2016, 12:07:02 AM »
Quote from: JTZ on April 14, 2016, 11:55:58 AM
Then up it to the 225 you had across three cards. Take one for the team.  :)
Sure. After next month at $1?
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #486 on: April 15, 2016, 09:34:34 AM »
I'm not sure what you're trying to find out about $1 vs $2.  $1 certainly will not count as 0%.

As mentioned in the wiki, the reason $2 is normally used is because that is the smallest amount guaranteed to report by most issuers.
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Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #487 on: April 15, 2016, 09:37:50 AM »
Quote from: Mendelssohn on April 15, 2016, 09:34:34 AM
I'm not sure what you're trying to find out about $1 vs $2.  $1 certainly will not count as 0%.

As mentioned in the wiki, the reason $2 is normally used is because that is the smallest amount guaranteed to report by most issuers.
He is just trying different things. Nothing wrong with experimenting especially when his score went down with  $1 reporting.
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #488 on: April 15, 2016, 09:46:27 AM »
Quote from: JTZ on April 15, 2016, 09:37:50 AM
He is just trying different things. Nothing wrong with experimenting especially when his score went down with  $1 reporting.

Something else happened.

There are too many factors for most people to single out variables.
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Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #489 on: April 15, 2016, 12:01:33 PM »
Quote from: Mendelssohn on April 15, 2016, 09:46:27 AM
Something else happened.

There are too many factors for most people to single out variables.
Most likely something else did happen. If he brings his cards to the balances (225) before the drop and he returns to the higher score then we have to look deeper.
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Offline noturbizniss

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Re: $2 trick to increase FICO score.
« Reply #490 on: April 15, 2016, 02:58:06 PM »
Quote from: JTZ on April 15, 2016, 12:01:33 PM
Most likely something else did happen. If he brings his cards to the balances (225) before the drop and he returns to the higher score then we have to look deeper.
I'll try Somehow I doubt that will proved more info. It'll have to be those same cards, plus we can see the number of open accounts went down.
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #491 on: April 18, 2016, 09:37:07 AM »
Quote from: JTZ on April 15, 2016, 12:01:33 PM
Most likely something else did happen. If he brings his cards to the balances (225) before the drop and he returns to the higher score then we have to look deeper.

It did.

This isn't experimental science at this point.  We know how this works for these scoring models.
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Offline mgarfin

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Re: $2 trick to increase FICO score.
« Reply #492 on: April 18, 2016, 12:23:29 PM »
When paying off a CC that had a reported utilization of 90% is there any reason to leave 2$ or as it will anyway get reported Im better off with $0?
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Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #493 on: April 18, 2016, 05:50:09 PM »
Quote from: Mendelssohn on April 18, 2016, 09:37:07 AM
This isn't experimental science at this point.  We know how this works for these scoring models.
It is always good to experiment and not accept something as 100%. BW has done great work on this but that doesn't mean we should all stop. If anything it will just confirm his findings.
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #494 on: April 18, 2016, 06:03:53 PM »
Quote from: JTZ on April 18, 2016, 05:50:09 PM
It is always good to experiment and not accept something as 100%. BW has done great work on this but that doesn't mean we should all stop. If anything it will just confirm his findings.

The issue is that most people can single out different factors.
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Offline JTZ

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Re: $2 trick to increase FICO score.
« Reply #495 on: April 18, 2016, 06:06:48 PM »
Quote from: Mendelssohn on April 18, 2016, 06:03:53 PM
The issue is that most people can single out different factors.
I agree but it is a way for them to learn about credit.
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #496 on: April 18, 2016, 06:08:38 PM »
Quote from: JTZ on April 18, 2016, 06:06:48 PM
I agree but it is a way for them to learn about credit.

Maybe.  I would be skeptical of data posted here with new claims.
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Offline Zalc

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Re: $2 trick to increase FICO score.
« Reply #497 on: April 18, 2016, 09:58:05 PM »
Quote from: Zalc on April 06, 2016, 09:36:14 PM
Also, does the trick work if I also have very large installment account balances (mortgages etc)?
Bump
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Offline PillanSmye

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Re: $2 trick to increase FICO score.
« Reply #498 on: April 18, 2016, 10:50:09 PM »
Quote from: JTZ on April 18, 2016, 05:50:09 PM
It is always good to experiment and not accept something as 100%. BW has done great work on this but that doesn't mean we should all stop. If anything it will just confirm his findings.

I'm pretty sure if I smash my toe with a hammer it will hurt.   Maybe someone can confirm that for me   
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Offline Mendelssohn

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Re: $2 trick to increase FICO score.
« Reply #499 on: April 19, 2016, 12:23:51 AM »
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