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Mychal89

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I just recently received my credit card and have been using it why has my credit score gone down?
I have received my credit card as of September and I have been using it to get a balance on it which I paid off on my first payment. So when I check my Credit Karma score to see if it has reflected on the score it shows that my TransUnion Score went down by 21 pts and my Vantage Score went down by 72. When I check the details on the site it says"You are using a high percentage of your available credit card limits." I though that the more you use your card and pay off the balance early your credit score should go up?

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Your credit card utilization rate is a very important component of your credit score. Maintaining a utilization rate over 30% can damage your score. Learn more about this topic here: https://www.creditkarma.com/article/credit-card-utilization

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If these are new cards, then your score takes a hit at first, but after 6 months it will increase.  To make it increase faster, keep a tiny balance on the card at all times 1-3% of the limit.  Best of luck.

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icuhowie

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Pay In Full your Credit Card Accounts off each month.  NEVER Leave a Balance on the Account.

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