Credit score going down? Am I using my credit cards right?

[Anonymous]

Before I begin, I have one student loan that will go in effect after six months upon graduation.

Before I applied for my Chase Freedom Card and Lens Crafters Card, my Score was at 640 (June 2011)

Now my score is at 520 (October 2011) 

What in the world am I doing wrong for such a huge drop? 

Chase Card: $500Limit

I have used around $400, and I always pay above minnimum 

Lens Crafters $800 Limit

Currently my balance is $520, I am also paying above minnimum

I always make payments on time (usually before the statement gets here, but sometimes once the statement arrives)

What should I be doing with these credit cards in order for my credit score to go back up?  I am always hearing mixed advice, and I am beggining to get frustrated. 

1. Is it true that I must always pay the whole entire balance in full after every statement? 

2. I have heard to use 30% of CLimit and always pay above minnimum (some say to just pay off the full balance, then proceeding with the next month again to a 30% and so on)

I would love advice on how I can utilize these credit cards to build my score, they are only hurting it. 

[coldnmn]

Everything I have read here, pay all your cards before they post. Leave one card with a balance under 9% utl.

[Anonymous]

Side Question (Don't want to spam the boards)

I need to have surgery and I don't have insurance, my dentist said I could apply for Care Credit once my score went up.

Again with the various advice I've gotten about only using 30percent of my CL, obviously the surgey will be so high that it will probably over 30% of CL.

In these cases what are some good ways to actually get my surgery without hurting my credit?

Also about my Lens Crafters card, lets say I have brought my balance at zero, and once its time for me to go back for an exam and a supply of contacts, should I only aim for 30percent of the CL and pay the rest in cash?

Again, once I recieve my statement, should I pay off in full (I might not have the money that is why I am using the 30percent from card) or am I able to just pay above minnimum every month until it is zeroed out? Or will that hurt or not improve my score?

Using Credit Cards are very confusing when it comes to building credit, plese someone help me.

[boomhower]

Your utlilty is way to high.  80% on one account and 65% on the other.  Get them below 50% for a decent boost, a bit more under 30%, and the best with one paid off and the other under 9%.  Making your payments on time is only part of the equation.  How much of your limit your using plays a big part in total score.

[Wolf3]

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@Anonymous wrote:

Side Question (Don't want to spam the boards)

I need to have surgery and I don't have insurance, my dentist said I could apply for Care Credit once my score went up.

Again with the various advice I've gotten about only using 30percent of my CL, obviously the surgey will be so high that it will probably over 30% of CL.

In these cases what are some good ways to actually get my surgery without hurting my credit?

Also about my Lens Crafters card, lets say I have brought my balance at zero, and once its time for me to go back for an exam and a supply of contacts, should I only aim for 30percent of the CL and pay the rest in cash?

Again, once I recieve my statement, should I pay off in full (I might not have the money that is why I am using the 30percent from card) or am I able to just pay above minnimum every month until it is zeroed out? Or will that hurt or not improve my score?

Using Credit Cards are very confusing when it comes to building credit, plese someone help me.

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You are confusing credit building with FICO score, they are not the same.      Building credit history is simple, Acquire credit, Use your credit, Pay your credit and keep doing it.  Best to PIF as much as you can to avoid interest charges.

Your FICO score is a snapshot evalution of your risk.   You can optimize your FICO score by controlling the utilization.   Utilization is the percentage of balance at closing to your credit limit.   Figure out how to get the lowest percentage you can , down to 9%, sometime in the next few months.  That will maximize your score and then it is time to apply for the CARE credit you need for the surgery.