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 Scores
Profile Image

Question By
rhsophia

0 Contributions
0 People Helped
Is credit score drop based on current credit utilization?Can it recover with low utilization ratio?
I found my credit score drop down from 740 to 690 and guess it is due to that the big purchase result in >50%credit utilization ratio last month. I wonder if it will increase to 740 when I go back to regular purchase (<20%credit utilization) this month. How soon? I am planning to apply a loan recently.

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
713 Contributions
2572 People Helped
Most Helpful Response

Helpful to 5 out of 6 people

Yes, your score will recover quickly. Although the general rule is that scores drop quickly, but rise only slowly, changes in utilization rate are the happy exception. While you can see a BIG drop from using up too much of your credit, you should see a BIG increase as soon as your credit card vendor reports the paydown to the credit bureaus.

Top Contributor

Reply by
Sumflow

109 Contributions
71 People Helped

 Is this true when reported utilization shows zero on an active account?

1 Contribution
0 People Helped

same problem

i thought it was better to show i can pay 5500$ out of my 6500$ limit. but as soon as i get my statement my score decreases 40 point. i immediately paid the 5500$ yesterday..  do you think my score will recover ? :(

Results 1-2 of 2Results 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.