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JohnalwaysOses

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Credit card utilization dropped my score by almost 100 points? Why!
What is the point of having a credit card to build credit if when ever I use it my score goes down? I pay the bill on time every month by triple its amount but if you spend more then 60% of ur credit limit your score gets kicked in the nads! Is this one of those superficial drops were it will bounce back next month when my utilization is back at 15% or do I really have to spend a year getting these points back?

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It will bounce back

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Credit card utilization is probably the most fluid of your score factors and will account for most of your month to month changes.  If you have a month that your credit card utilization is near max you will find that your credit score takes a short term hit but it will bounce back within 1-2 months so long as your spending returns to a lower level.  For example a few months back I had substantially higher utilization than normal because I had bought a ton of furniture.  My score dropped about 60 points but returned to normal the next month when my utilization was near normal levels.

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The drop was superficial and can/should return to normal as you return to your normal spending habits.   Its like carrying a pay of water accross the room, it will slosh around but when you stop, it too will settle.   BIG WARNING, when your Utilization jumps dramatically, some credit card companies will get scared.  They pull soft pulls on your credit almost monthly and when they see a big jump, they see failure in their eyes.  From various reviews, there are a few that will jump the gun and lower your credit line so that if the warning sign is true, their loss is not that large.   So, keep an eye on your credit limits.   If one changes your credit score, its like a snowball, its likely that someone else will follow suit.  (Note: Why do they do this?   When persons with a large credit line are considering bankruptcy, they rush out and max out all their cards to make it worth while, the credit cards are unsecured and they loose big time in the process.  Its those persons who have hurt them in the past that harm the rest of us.)

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