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Question By
cdacc0914

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Does carry multiple balances hurt your credit score?
So I was reading a reddit post and people were saying their credit score got hurt by carrying multiple balances. A guy tried to utilize 8 cards a once with a small transaction and his score dropped by 40 points. Can anyone confirm this?

Read it here https://www.reddit.com/r/churning/comments/36mam5/is_0_utilization_bad_or_fine_should_i_keep_it/

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YES! It really can

Helpful to 1 out of 1 people

What drops your score isn't the amounts of the charges but the behavior.  if you carry small balances on many cards for a long period of time it will in the long run raise your score.  But if it is not your habit, and all of a sudden you start using many cards all at once you score will drop like a brick until a pattern developes.  Its all about the law of averages.  

Credit scores were developed by the credit industry to protecet them selves.  They use algeritiums based on the average behavior across the country. So when your behavior changes thats a signial to lenders that they may want to be careful until the behavior no longer looks risky.  

Hope that helps. 

9 Contributions
5 People Helped

Thanks for confirming it.

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