Question about usage:

Anonymous · ‎03-21-2015

I was wondering if using my credit cards lower my credit score??? I got an alert that showed me using a card cost me 10 pts now I am scared to use the cards but that defeats the purpose of having them and building credit. How does this work?

travisr0 · ‎03-21-2015

Yes it can lower you score depending on how much utilization of your balance you are using. Another-wards if you have 1000 limit and you charge 700 dollars on the card you have a utilization of 70%. Good rule of thumb to use is not go over 30% util on any given card, however, keeping from 1-9 % will obtain you the highest scores overall.

Experian 756 // Equifax 764 // Transunion 759 // AAoA 5.7 years

Anonymous · ‎03-21-2015

Heavy Utilization does. If you use it and PIF, it won't affect much.

grinlikechelsea · ‎03-21-2015

It isn't using them; it depends on how much of a balance you let report. For example, if I had a $5,000 card and I maxed it out and let it report, it would ding my scores. However, if I paid $4,999 of it before the statement cut, it would report the $1 and it would report ideal usage.

A rule of thumb is to let 1-10% of your available credit be reporting as a balance in any given month.

Anonymous · ‎03-21-2015

The other important part is that you're showing usage over time, which will help your scores in the long run. You want to be using the cards. I notice a 2-3 point fluctuation per percent utilization on my cards, but overall, the trend is up.

Anonymous · ‎03-21-2015

Ok now it makes sense and it was when I first found this site that this happened but since I found this site I have gotten my utilization down to 8% and it has not happened again that is thanks to all of you who share your knowledge with those of us who had/have no clue. Since finding this site my scores have went up over 100 pts across all three bureaus. Thanks yall!!!!!!!

grinlikechelsea · ‎03-21-2015

@Anonymous wrote:
Ok now it makes sense and it was when I first found this site that this happened but since I found this site I have gotten my utilization down to 8% and it has not happened again that is thanks to all of you who share your knowledge with those of us who had/have no clue. Since finding this site my scores have went up over 100 pts across all three bureaus. Thanks yall!!!!!!!

Congratulations on the score increase!

NRB525 · ‎03-21-2015

@Anonymous wrote:
Ok now it makes sense and it was when I first found this site that this happened but since I found this site I have gotten my utilization down to 8% and it has not happened again that is thanks to all of you who share your knowledge with those of us who had/have no clue. Since finding this site my scores have went up over 100 pts across all three bureaus. Thanks yall!!!!!!!

<-- is now confused.

your score went up 100 points (presumably over the last several months) because of decreased utilization and you just got an alert that you score went down 10 because you are using your CC?

What was the exact text of the alert, was it within the last few days, and was the alert from MyFICO or some other site?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

Anonymous · ‎03-21-2015

Sorry if I confused you. I registered with this site at the end of January and since I have been doing what you guys suggest and getting my utilization down my scores have risen significantly (I also had a baddie to drop off). On February 12 I got an alert that said, "the balance on one of your accounts has increased by 60%" and my EQ score dropped 10pts. Since then I have been leery about using my cards and freak out when I get an alert. But now thanks to you all I understand how it works!!!! I had always paid my balances off but did not know about the statement balance date and how important it was and since I corrected this I am on my way. My current scores are EQ:665 TU:686 EX:687

Anonymous · ‎03-21-2015

@travisr0 wrote:
Yes it can lower you score depending on how much utilization of your balance you are using. Another-wards if you have 1000 limit and you charge 700 dollars on the card you have a utilization of 70%. Good rule of thumb to use is not go over 30% util on any given card, however, keeping from 1-9 % will obtain you the highest scores overall.

"In other words"