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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 115544 times)

Offline TimT

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Re: $2 trick to increase FICO score.
« Reply #20 on: February 02, 2015, 11:15:35 AM »
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Offline Myccrabbi

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Re: $2 trick to increase FICO score.
« Reply #21 on: February 02, 2015, 11:16:33 AM »
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #22 on: February 02, 2015, 12:01:43 PM »
Quote from: ShlockDoc on February 02, 2015, 11:15:13 AM
That's the whole point of CM's post.  He'll update with more information to clarify...
Trying to get more info.  :-[
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #23 on: February 02, 2015, 02:35:59 PM »
Other amounts will work but $2 is what they use. Otherwise you get questions like does 1.99, 1.23, .56 or 13.86 work. It is important that this is the only balance that reports.

What it comes down to is you need over a certain amount to report to trigger FICO but <1% of the CL. Also some CC's might not report amounts under 1, 2 or $5. Make sure it does report the $2.
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Offline Dan

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Re: $2 trick to increase FICO score.
« Reply #24 on: February 02, 2015, 02:36:44 PM »
I've always said leave $1 over.
Dont think $2 is anything magical.
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Offline benjie1305

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Re: $2 trick to increase FICO score.
« Reply #25 on: February 02, 2015, 02:37:50 PM »
Quote from: ChaimMoskowitz on February 02, 2015, 02:35:59 PM
Other amounts will work but $2 is what they use. Otherwise you get questions like does 1.99, 1.23, .56 or 13.86 work. It is important that this is the only balance that reports.

What it comes down to is you need over a certain amount to report to trigger FICO but <1% of the CL. Also some CC's might not report amounts under 1, 2 or $5. Make sure it does report the $2.

And this can be on different cards every statement period correct?
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Online etech0

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Re: $2 trick to increase FICO score.
« Reply #26 on: February 02, 2015, 02:47:14 PM »
It means being careful not to purchase anything between when you pay the balance and when the statement posts.
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #27 on: February 02, 2015, 03:01:39 PM »
Quote from: Dan on February 02, 2015, 02:36:44 PM
I've always said leave $1 over.
Dont think $2 is anything magical.
I agree. You do want to make sure the amount reports.

One thing that was not clear if this works on non preset limit cards like Signature cards.
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #28 on: February 02, 2015, 03:01:55 PM »
Quote from: benjie1305 on February 02, 2015, 02:37:50 PM
And this can be on different cards every statement period correct?
Yes.
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Offline sruly101

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Re: $2 trick to increase FICO score.
« Reply #29 on: February 02, 2015, 03:22:45 PM »
One card with a $2 statement, and the other cards needs to be clear or may have balances as well?
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Offline TimT

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Re: $2 trick to increase FICO score.
« Reply #30 on: February 02, 2015, 03:24:47 PM »
Quote from: sruly101 on February 02, 2015, 03:22:45 PM
One card with a $2 statement, and the other cards needs to be clear or may have balances as well?
Clear
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #31 on: February 02, 2015, 03:53:26 PM »
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Offline @Yehuda

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Re: $2 trick to increase FICO score.
« Reply #32 on: February 02, 2015, 03:59:04 PM »
Really? So all cards show 0% utilization except for one that shows $2 (which is <1% utilization)?
Most credit websites say to leave 7-10% of CL on a card (and from that I would assume 7-10% on each card is even better).
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Offline ChaimMoskowitz

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Re: $2 trick to increase FICO score.
« Reply #33 on: February 02, 2015, 04:08:04 PM »
Quote from: @Yehuda on February 02, 2015, 03:59:04 PM
Most credit websites say to leave 7-10% of CL on a card (and from that I would assume 7-10% on each card is even better).
Dan's says leave >$1 and the experts in the field (CB) agree so you decide on which one to go with.
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Online bermo

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Re: $2 trick to increase FICO score.
« Reply #34 on: February 02, 2015, 04:53:05 PM »
Quote from: ChaimMoskowitz on February 02, 2015, 04:08:04 PM
Dan's says leave >$1 and the experts in the field (CB) agree so you decide on which one to go with.
Iirc Dan said you should leave $1 on all your credit cards. Cmiiw
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Offline @Yehuda

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Re: $2 trick to increase FICO score.
« Reply #35 on: February 02, 2015, 04:55:48 PM »
Quote from: ChaimMoskowitz on February 02, 2015, 04:08:04 PM
Dan's says leave >$1 and the experts in the field (CB) agree so you decide on which one to go with.
You're checking with people you know that work at the CBs?
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Online etech0

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Re: $2 trick to increase FICO score.
« Reply #36 on: February 02, 2015, 04:57:11 PM »
And I thought CB was CashBack...
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Offline @Yehuda

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Re: $2 trick to increase FICO score.
« Reply #37 on: February 02, 2015, 04:58:17 PM »
Quote from: etech0 on February 02, 2015, 04:57:11 PM
And I thought CB was CashBack...
Me too, but then it clicked. Plus, it's another definition on the Acronym thread.
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Offline D93

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Re: $2 trick to increase FICO score.
« Reply #38 on: February 02, 2015, 04:59:08 PM »
Was just looking over my TU and EX report and all my Chase balances that closed under $5, they have been reporting as $0.
So you might wanna check your report to see how Chase reports it on your CR, and if they are also reporting it as $0, then you are going to have to use a different bank than Chase to do the "$2 trick".
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Online etech0

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Re: $2 trick to increase FICO score.
« Reply #39 on: February 02, 2015, 04:59:16 PM »
Quote from: @Yehuda on February 02, 2015, 04:58:17 PM
Me too, but then it clicked. Plus, it's another definition on the Acronym thread.
:)
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