Since my bank started offering free monitoring of my credit score, I've become aware of its minor ups and downs for the first time, and I've noticed a puzzling pattern.
So far as I understand, low credit utilization is generally considered a good thing. My utilization is in a low but reasonable bracket, typically bouncing around between 5%-10%. My cards are long-established, paid off each month, and used frequently (the low utilization is due to the companies choosing to raise the limit, not me avoiding credit spending), and my overall score is good.
Rather than going up when my utilization goes down as I would expect, however, it appears that there is a very clear pattern of my credit score going up when my utilization goes up! The credit score report sites even give me a recommended action to reduce my utilization in order to further improve my score. The actual numbers, however, are showing me the opposite.
Why would this be?