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SammyMurphy

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My credit score tanked over night
I have a perfect payment history and pay all credit cards off on time with no delinquencies. I have a platinum American Express card and a $200,000 limit on another card. I charge a substantial amount every month for work; sometimes $150,000-$200,000, but I pay off the entire balance prior to due date. Actually prior to closing date so I don't incur interest charges. My credit score was 773. Last month, I charged close to $300,000 (the card allowed me to), which was clearly above my limit but paid $200,000 before the closing date and carried over a balance of $100,000. It wasn't late but I incurred interest charges which of course was expected. Therefore my total balance relative to the total credit available was impacted (credit utilization.) Again, nothing late, nothing past due. When I checked my credit score the following week, it dropped 117 points (from 773 to 656). Needless to say, I am horrified! Any ideas or suggestions?

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Utilization

If your cedit limit is $200,000 then you had a high utilization of 50% and that can immidiatly effect your credit, and I beleive the reason your score dropped.  Also having a $0 balance carried over can also hurt your credit.  Credit Karma recommends having a 1% - 20% utilization rate.  That range is given an "A" for a score in this catagory, and will increase your score fairly quickly over a years time.

Also You may want to ask the company if going over your credit limit as long as you pay it off before the end of the month is ok.  Although you may have a hard time getting an anwer.  Maybe someone else of the forum could answer that question.

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