using low max cards too much hurt your score?

[Anonymous]

Hi,

I have been using a low card 400max to pay for gas and stuff. I pay it off every week  so I can get more credit. I spent like $1,000 dollars last month and keep paying it off. I know I'm an idiot I should have called and got a higher max but I put it a off due to work and I just recently moved back to the US from China.

I noticed on my Transunion Report it had next to my balnce uses $399-$400. This could be the difference in FICO scores between TU 619- EF 716.  My EF balance on this card sys $115-400 available credit used.

Also I got a Score Watch the other day that my EF score has dropped from 716 to 605. Is this for real? I have done nothing except the above. I'm trying to get house and I think I may have just screwed up somehow.

Thanks

[Anonymous]

Hi abe12 & welcome!

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@Anonymous wrote:

Hi,

I have been using a low card 400max to pay for gas and stuff. I pay it off every week  so I can get more credit. I spent like $1,000 dollars last month and keep paying it off. I know I'm an idiot I should have called and got a higher max but I put it a off due to work and I just recently moved back to the US from China.

I noticed on my Transunion Report it had next to my balnce uses $399-$400. This could be the difference in FICO scores between TU 619- EF 716.  My EF balance on this card sys $115-400 available credit used.

Also I got a Score Watch the other day that my EF score has dropped from 716 to 605. Is this for real? I have done nothing except the above. I'm trying to get house and I think I may have just screwed up somehow.

Thanks

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Is this your only revolving account/credit card? If so, and it reports with a high balance (maxed out or close to maxed out) it can most definitely have a significant impact on your credit score. You may want to figure out when the lender reports to the credit bureaus, and time your payments such that either a zero, or a very small balance reports.

The good news is that once the balance (zero or under 10% of the credit limi) reports, your score will bounce back. BUT, just to be certain, make sure to pull your credit reports directly from the three credit bureaus to make absolutely certain that nothng else has popped up on your reports.

Good luck!

[Anonymous]

Thanks LilMirth,

10%. good. maybe that is what happened.  I had a balance in June 140.00 out 400 available and in May it was 40 out of 400. But a 114 point drop yikes.

I have a few cards.  But use this chase card. I will pay it to 0 before the next staement date. But the fact that I spent over a 1000 in a month on that card effect my score in a negative way?

I will limit my spending on this card from now on and use some others.

Is that score watch 100% correct?

Also I'm currently disputing some stuff on my reports.

I'm still waiting for a conclusion from all 3 bureaus, been 3 weeks.

Thanks again!!!

[Anonymous]

The CRAs don't know how much you spend on a card in a month, so it won't affect it at all. All they know is what your ending balance is when the statement cuts and the credit card company reports it to them. From the CRAs perspective, there's no difference between you spending $100 in a month and leaving that as your balance, or spending $4000 on it in a month, paying $3900 off and there being a $100 balance. Either way they'd just see the $100 balance and your score would be adusted accordingly.

It does seem like a huge drop just for maxing out one low-CL card, but as long as you pay it off/pay in full before the statement cuts the next time you should be fine.

[Anonymous]

Thanks Andy,

Good info. I will pay it off before the statement date.

I will pull my EF file to see if it is that. I don't want any suprises.

Trying to get a house. Thanks!