Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Aerysta

0 Contributions
0 People Helped
Credit jumped up after I got a credit card then 2 weeks later dropped 30 points.
I really need someone to lay it out plain for me. I have avoided credit cards my entire adult life for precisely this reason. It's too confusing! I finally applied and got 3 credit cards in a few weeks times, nothing crazy, limits are small. I have a 150 balance on one with automatic payments, I used 75 on one and paid it off completely and hadn't used the other yet. Well, I get on CK this morning and my credit dropped 35 points!!! I need someone who knows that they are talking about to tell me how to work this for my benefit. I'd rather just pay cash if it is going to be such a pain. Do I pay them off completely every month? Keep a small balance? Use only 50 bucks a month or a good chunk? My only negatives are "open accounts" which is 5 (two of them are car loans, nothing to be done about those, it is what it is) and the others are the cards and my "age of credit" which is still in it's toddler stage. Please, someone tell me how to do this correctly and the least amount of stress!!!!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1134 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

"Open accounts" are not a negative thing. You want open accounts to build and maintain credit scores.

When building credit you should always expect short-term damage, it is necessary in order to build good credit in the long-term.

Short-term damage comes from: hard inquiries and lowering the "average age of accounts"

Your scores will be dinged if you utilize too much on your credit cards, do some reading on "credit utilization"

You should only let one credit card report a small balance each month (small balance is less than 10% of the cards limit)

You did right by getting accounts opened. You need to designate time for reading about credit, in order to win the game you need to know how the game is played. Check your FICO scores too, they cost money, but most lenders use them, so they are more important. Please continue to read all that you can about credit and ask questions along the way.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.