$2 trick to increase FICO score.

[AJK]

Maybe someone can help explain this:

Credit Report of A on 1/15/16 = FICO 08 score of 784

--Two CC's report balance: one Barclay card of $2,000.00 and one AmEx card of $2.00
--Installment balance of $32,000


Credit Report of A on 2/5/16 = FICO 08 score  772

--One CC reporting balance: one AmEx card of $2.00
--Installment balance reduced by $374

All else remained the same, i.e. no new inquiries, no (new) derogatory marks. The only things that changed should have caused the score to increase, but it has gone down by 12?

ETA: And, a hard pull fell off between the two dates--another factor that should have caused an increase (or at least not a decrease).

[newdealseeker]

Maybe someone can help explain this:

Credit Report of A on 1/15/16 = FICO 08 score of 784

--Two CC's report balance: one Barclay card of $2,000.00 and one AmEx card of $2.00
--Installment balance of $32,000


Credit Report of A on 2/5/16 = FICO 08 score  772

--One CC reporting balance: one AmEx card of $2.00
--Installment balance reduced by $374

All else remained the same, i.e. no new inquiries, no (new) derogatory marks. The only things that changed should have caused the score to increase, but it has gone down by 12?

ETA: And, a hard pull fell off between the two dates--another factor that should have caused an increase (or at least not a decrease).

Interesting. Wonder what everyone else will say. Maybe we don't yet know  everything there is to know about the $2 trick.

[a mirrer]

Maybe someone can help explain this:

might have to do with the bucketing mendlessohn was referring to

FICO uses different scorecards commonly referred to as scoring buckets. 

If you have ANY negative reporting, you will be on one of the scorecards for people with negative information on their credit reports. 

This makes the highest potential score you can receive much lower since you will never achieve a perfect score with ANY negative information reporting.

Once even a 30 day late is deleted, you will eventually be moved to a scoring bucket with a higher potential score.

[Mendelssohn]

There are too many factors that often get overlooked for most people to accurarely pinpoint what causes score changes like this.

That being said, the science is established with the $2 trick.

As BobWang on CB would say, something else happened.  That doesn't mean you know what happened, but that something else is responsible for the score change.

[PETERP]

There are too many factors that often get overlooked for most people to accurarely pinpoint what causes score changes like this.

That being said, the science is established with the $2 trick.

As BobWang on CB would say, something else happened.  That doesn't mean you know what happened, but that something else is responsible for the score change.

Made a mistake in prepayment , just want to confirm $4 balance basically the same as $ 2 IIRC ?

[Mendelssohn]

Made a mistake in prepayment , just want to confirm $4 balance basically the same as $ 2 IIRC ?

Correct. Not much, if any, difference.

[benjie1305]

Made a mistake in prepayment , just want to confirm $4 balance basically the same as $ 2 IIRC ?

Yes.

[PETERP]

Correct. Not much, if any, difference.

Thanks . With a many years CC history and FICO that fluctuates between 780 - 820  does the number still make much of a difference

[hide4]

Called to pay my $2 balance, the rep just credited my acct  (Another reason for the $2 trick!)

[Venilla]

Called to pay my $2 balance, the rep just credited my acct  (Another reason for the $2 trick!)

Which bank?

[Tywin]

Maybe someone can help explain this:

Credit Report of A on 1/15/16 = FICO 08 score of 784

--Two CC's report balance: one Barclay card of $2,000.00 and one AmEx card of $2.00
--Installment balance of $32,000


Credit Report of A on 2/5/16 = FICO 08 score  772

--One CC reporting balance: one AmEx card of $2.00
--Installment balance reduced by $374

All else remained the same, i.e. no new inquiries, no (new) derogatory marks. The only things that changed should have caused the score to increase, but it has gone down by 12?

ETA: And, a hard pull fell off between the two dates--another factor that should have caused an increase (or at least not a decrease).

Was the Amex a credit card or a charge card?

[AJK]

PRG, so charge.

[PillanSmye]

PRG, so charge.

So you've proven (to yourself)  that 0 utilization is not ideal...

https://creditboards.com/forums/index.php?showtopic=527614&p=5019078

Go to post 17, not sure why it didn't link directly

[Mendelssohn]

Don't use a charge card for the $2 trick.

[Mendelssohn]

PRG, so charge.

You have been pretty argumentative and skeptical of this thread since it was started last year.  What real data do you have to prove that this doesn't work?

Keep in mind, this was posted to help people here and that the knowledge base on CB in terms of FICO scores exceeds what we have here.

If you have something to add, please do so.  If not, move along.  You have nothing to add to the science behind this.

[AJK]

You have been pretty argumentative and skeptical of this thread since it was started last year.  What real data do you have to prove that this doesn't work?

Keep in mind, this was posted to help people here and that the knowledge base on CB in terms of FICO scores exceeds what we have here.

If you have something to add, please do so.  If not, move along.  You have nothing to add to the science behind this.

Uhm, trigger happy much?

What about "PRG, so charge" warranted that tantrum?

[Tywin]

PRG, so charge.

Most Fico algorithms don't include charge card balances in aggregate utilization. So, having only a charge card report a balance is essentially the same as all cards reporting zero balances.

[AJK]

Most Fico algorithms don't include charge card balances in aggregate utilization. So, having only a charge card report a balance is essentially the same as all cards reporting a zero balance.

Yup. My mistake.

[rileywiles23]

If a card closed with a negative  balance, does that affect the $2 trick ?

[benjie1305]

If a card closed with a negative  balance, does that affect the $2 trick ?

No. It is as if it reported $0.