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schoolsecretary30

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Why did my score drop for using a new credit card?
Why does it say that my score dropped for using my credit card, a new one, then paying the balance right off before the due date? It said something about so much toward my limit, but why does that matter if I pay it right off? I thought that was the whole point to rebuild my credit?

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Make sure that the utilization rate on the credit card is less than 10% of the credit line come statement time. Make sure you have a small balance report on one card monthly. The statement date is when the creditor will report your balance to the credit bureaus. If you've had a high rate of utilization on that card at statement time, then you would have been dinged for high utilization rate.

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For best scores: let one card report a small balance of under 10% of the credit line. (Example a card with a $1000 credit limit should not exceed a $99 balance at the statement date. You can always pay the card to a $0 balance after the statement date but before the due date to avoid paying interest.

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Also, never rely on FAKO scores to gauge your credit decisions.

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