I have a question about the recent change to how credit scores are calculated, the "NEW" formula or method they are using now.
Has the "NEW" method put more weight or focus on the amount of credit you are using compared to the previous system?
I ask because when my credit usage is zero my score is one number, then, I can use as little as 1% of my available credit and my score will take a FIFTY (50) POINT DROP just from using 1% of available credit. In the last year or so, I have kept my credit usage below 3% and usually closer to 1% but unless my credit usage is ZERO, it drops my score an insane amount.
It use to not be that severe or much or maybe I am not remembering correctly. From what I remember, as long as you were under 10% it did not impact your score much, usually you had to be at 28% or more to drop your score 50 points, but now mine drops 50 points or more if my usage is as little as 1% but the score drop from 1% to 28% is not as drastic like it use to be.
Hope I explained that so you can understand, it just seems my score takes a huge hit unless I keep my credit use at zero, so its like having two scores, my zero balance score and my functional score which is essentially if I use credit at all. Needless to say its frustrating because if I want to make a large purchase, I have to pay off all my cards to get that 50 point boost to get a better rate.