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Question By
rosetatooz

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How can my credit drop 48 points in 1 month?
Last month I had a credit score of over 700. I just received an alert that my credit score has dropped 48 points. I opened a new credit card earlier this month and paid off some older debts so the card is nearly 95% maxed but that shouldn't result in that drastic of a drop should it?

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That's the reason!  Ideally, you want to keep credit usage at or below 10%.  I recently had the opportunity to do a 0% balance transfer to the maximum available credit on one card and I ended up with a usage over 50% on that one card.  My score dropped by 31 points. It was a calculated risk that I took and, as I pay that balance down, my score is going up,  plus I am not paying interest on that transferred balance.

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That surely would cause a drop like that. Do your future self a huge favor and start reading all that you can about credit, there is a lot to know and financial future depends on you gaining the knowledge that is needed.

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