dropped 41 points!!!

Anonymous · ‎11-03-2014

My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Luscher · ‎11-03-2014

When did the drop occur? When both account reported? You will take 1 hit from the first hp, then another hit from the second hp for the second account. then 1 hit for new account report and another hit for the second account reporting. This is only temporary and in time, your score will boost back up

Ghoshida · ‎11-03-2014

@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Do you have any other baddies reporting? The initial hit may be because of inquiries and new accounts, but with time passing and good payments, the good history will overtake the inquiries and your scores will grow.

JoshNurse · ‎11-03-2014

@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Any baddies on your report? Late payments etc..?

JoshNurse · ‎11-03-2014

@JoshNurse wrote:
@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!
Any baddies on your report? Late payments etc..?

This may seem terrible but now I feel much better and less stressed. Credit Score 770-782 on all 3. I was worried about getting ahome loan. All I need to do is finish paying my car in 1 year and after that n payments. I will hopefully get a home then if possible. Unless I lose my job and some emergencys happen...

Anonymous · ‎11-03-2014

This is completely normal. Also for the record you want below 10% of your cards utilization and total utilization. In about six months you should have your points back with more.

Anonymous · ‎11-03-2014

Yes, they just reported for the first time. My credit has been the same for years. I just haven't done anything to try to improve it till now. I just feel discouraged now. At lease everyone is telling me that its temperary. Thanks for your response.

Anonymous · ‎11-03-2014

I do have 1 baddie that was from 2 years ago- my student loan. I had a few late payments. I have been paying on time since then- auto pay. I hope your'e right that this is just the initial hit. I literally just got both cards in October. I was always too scared to even apply for anything.

Anonymous · ‎11-03-2014

Wow... Well, glad that my not so great situation makes you feel much better about yourself. At least I accomplished something right...

JoshNurse · ‎11-03-2014

@Anonymous wrote:
I do have 1 baddie that was from 2 years ago- my student loan. I had a few late payments. I have been paying on time since then- auto pay. I hope your'e right that this is just the initial hit. I literally just got both cards in October. I was always too scared to even apply for anything.

Did you get a capital one? They are the ones that helped me get to where i am now.