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JohnnyMad

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Credit Score Dropped 41 Points in a Month
I started to worry when I saw this. I immediately pulled one of my free credit reports(Equifax) and checked over it. I couldn't find anything wrong with it. I didn't miss any payments, I was never late, I didn't open a new credit line or bank account.

I did use almost my whole card limit to pay for school, I carried that balance for 2 weeks until my paycheck came in and payed it off immediately. Would this cause the significant drop or am I missing something here? Prior to this I would never go over half of my credit limit.

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yes it would a high balance-to-limit ratio also known as credit utilization will have a very short term but powerful effect on your credit score. I maxed out on a purchase for a discover card in october and my credit score dropped 50 points. The next month I paid it off and it jumped back up 60.

The key is to pay off your balance down to at least 35% before the cut date. 99% of credit cards will report your balance on this date (when the statements are printed) so if you have to, make multiple payments in a month before they report it to the credit agencies.

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JohnnyMad

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Awesome, thanks for the response! 

I made 2 payments on it, which payed it off completely which brought me into January with a $0 balance. So what you are saying is I should see a jump by next month? I have the Discover it Card which shows my FICO score on each statement. 

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Yes, try to keep your credit card balances low. pay twice in a month if you have to if it's maxed, right before the end of your statement cycle. The next reported low balance by discover will bump up your score.

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