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Posted in Credit Cards
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Question By
atul4bits

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0 People Helped
Retail Card or loan from Rooms to Go banged my credit score by 100 pts
Hi Friends,

I bought furniture from Rooms To go and they approved around $5700 interest free credit for 4-5 years. Initially they told its loan and then later they said its like a credit card. I was happy to assume it as a loan for 110$ monthly installment

The problem is as this got reported my score tanked by 100 points from 750s to 740ish, the reason was clear that my credit utilization went above 50% as this account reported 100% credit utilization.

I am not sure if this is the correct way of reporting the account details. now i am worried how long will it take for my score to go back to same levels. I was targeting 800+(just a target, no reason in mind) in next 8-12 months with the best ways to utilize credit cards and accounts.

Can i do something about correcting my score, i feel that they didnt report it in correct way, it should be reported as a loan and not Credit limit and Credit utilization.

Please suggest

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Top Contributor
988 Contributions
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Your score will recover as your revolving utilization drops.  Credit Karma shows you that revolving utilization has a significant impact.

All you can do is pay down the card balance.

Top Contributor
5038 Contributions
1134 People Helped

That's right, the only thing that you can do is pay down the balance. I would assume that you signed paperwork after you applied, always be sure to read what you are signing. The only other option, which probably would not be available yet, is to get an increased limit on the card so it brings your utilization down or you could apply for another revolving line of credit to help bring down your overall utilization rate, but the sure fire way is to get this account paid down.

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