Credit Card Center Advertiser Disclosure

New Visitor
Posts: 1
Registered: ‎08-07-2007
0 Kudos

75 pt drop move to improve?

We were looking to refinance mortgage but wanted to raise my fico score first.
So we decided to breakdown and get a credit card. My thought was that by getting c.c. then running up charges and paying on time was the way to get your score up.
Well shortly after receiving a card with a  $7,000 limit my score did raise about 40 points.
This was great, now I thought all we need to do is run up some charges and start paying them back on time. This would surely raise my score even more.
So my wife and I went out and treated ourselves to some much needed appliances (totaling around $2,500).
That was all we wanted. We got our appliances, and made our first payment immediately.
We our now on way to raising this score even higher (right?) wrong when my next score alert came I felt sick in the pit of my stomach to see a 75 point decrease. This was a hard lesson to learn.
Had I known this would happen, I would have gladly kept a zero balance and been satisfied with my initial point increase.
However, I must now decide the next move to get score where it needs to be.
I need quick results if possible.
Do I pay off c.c. balance in full immediatedly (which will deplete closing cost savings)?
Do I pay off c.c. in a few large sum?
Any advice that will help is appreciated.
Frequent Contributor
Posts: 351
Registered: ‎04-02-2007
0 Kudos

Re: 75 pt drop move to improve?

[ Edited ]
The reason may be that you are at about 35% utilization on that card.  Definitely pay it down to around 9% ($630).

Message Edited by HouseHunter on 08-07-2007 09:57 PM
Posts: 46
Registered: ‎08-07-2007
0 Kudos

Re: 75 pt drop move to improve?

Man, whoever is giving you such advice (open new credit cards before re-finance).
> My thought was that by getting c.c. then
> running up charges and paying on time
> was the way to get your score up.
Your thought was exactly wrong, esp. with run up charge and pay up on time.  Only charge you need to run up is a $1.07 pack of gum, let it post and pay.
I am a little suspicious of the sequence of events and the score effect you are describing.  40 pt increase in score?  Do you have other highly utilized credit cards?  If so, what was your utilization percentage before?  And what is it now?
You need to pull your full power report (not just the score update), and see the top-listed negative factors.
You will probably see this:
- you have recently been looking for credit,
- you have opened credit in the last year (or recently),
- your balances are large or something like.
At any rate, instead of speculating or letting me do the same, you should get your full score power report, see what the bads are and fix them.
I suspect that the only thing you can do now is pay down as much balance as possible.
Frequent Contributor
Posts: 436
Registered: ‎06-15-2007
0 Kudos

Re: 75 pt drop move to improve?

Your credit card accounts should be at 1-9% of the available credit limit. The CRA's like this. NEVER BE LATE.

Pay down and you should rebound soon.

Welcome to the forums.


Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.