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Posted in Credit Karma
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Question By
Pharkus

84 Contributions
47 People Helped
-3 points, utilization from 0% to 8%
I opened secured credit card because I had no open accounts and no payment history. I charged 8% of limit during first month and paid off at the end of the month. My credit score DROPPED by 3 points. The whole purpose of getting the card was to build my score. But using it at less than 10% of limit and paying it off in full actually DECREASED MY SCORE. Why? CreditKarma says my debt balance went up by the amount I charged on the card even though I paid it off.

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Top Contributor
5038 Contributions
1136 People Helped

That's nonsense. I advise you to watch your FICO scores to see what happened with them.

Top Contributor
497 Contributions
1204 People Helped

Was there a hard inquiry added to your report? If so, that is what most likely caused your score to drop 3 points.

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