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Question By
matthenne1

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Please explain huge drop off
I had a 620 added a credit card. Score went up to 660. I never had an overdue amount but my credit card company reported a balance. My score dropped to 570! I immediately laid off the card and now have only recovered 6 points. So here I sit at a 576 wondering how long will it take to get back up to 660. Any advice would help.

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Keep using the card to build credit. Pay on time 100% of the time and don't max out your credit card, even if you pay it in full each month (sometimes it gets reported to the credit bureau with the balance and makes it look maxed out). If you carry a balance, don't allow your balance to exceed 30% of the card's limit. Responsible use of the card should continue to increase your credit score.

Reply by
matthenne1

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Thanks for the help. it just seems like a hugh penalty for something difficult to know. I didn't realize "carrying a balance" could be so bad and that it was different than paying your bills off- in full and on time. It just stinks to be down so low for that. Im pretty upset about it. Thanks again. 

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Sorry *paid off the card

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Reply by
jwsister

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Pay off "Total Amount Due" on the card when the statement comes in.  Then you build your credit score and don't pay interest on any balance.  Just don't pay any more than what is shown on the statement because any additioinal charges you may have made between the "Closing date" of the card and the time you got the statement will show up the following month and you can pay that then.

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