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Question By
b00b0020

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why did my credit score drop 7 points for using not even 1/3 of my new credit card?
got a point for getting a new card.
no missed payments
only thing is i used my new credit card and its says its a debt istead of a credit use.

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CREDIT CARD USE IS DEBT!!!

Helpful to 7 out of 8 people

Any time you use a credit card you are, in effect, borrowing money, so have to pay a debt.  Any time you USE credit, it is a debt because you have to repay.  When the credit card is completely repaid your credit availability will increase and that will increase your credit score.

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Reply by
jwsister

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Helpful to 14 out of 15 people

Missed before that you had used almost 1/3 of your credit available from the card.  That is a usage rate of at least 30%, where less than 20% usage is ideal.  High usage is going to knock you score down.

Keep the usage low and pay the balance on your card IN FULL each time the bill comes in, and you'll be fine.  Continue on at this rate you just reported and you will be headed for disaster.  Been there and not going back!!

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A drop of 7 points isn't very significant to worry about. It was probably caused by the hard inquiry by applying for the card rather than using the card for the first time.

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Helpful to 1 out of 1 people

Don't confuse the words debit and debt.

Debit refers to the act of debiting an account as opposed to crediting an account in accounting ledgers. Using a debit card results in a debit to your checking account that the card is connected to.

Debt refers to an abount that you owe as a result of borrowing money.

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Understanding on how to use a credit car

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From what I have read when u get a credit card its best to use it as less as possible in order to keep it from messing with ur credit score. I don't get it this goes back to the term of USE IT ONLY IN EMERGENCIES. So how often should I use my credit card if i just have a limit of 500 I want 2 one for $500 and another for $200 but I think i should just stick to one.

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