Credit scores goes down each time I use my credit cards even if I pay them 2 or 3 days later?

[cmrabet]

I have a Chase Credit Card (Amazon) that I use to do regular purchases. Each time I use it, my score drops, eventhough I paid the amount used in the next 2 or 3 days.

Recently I purchased a computer from Amazon for $635 which I paid a week later. I went to myfico.com to find that I lost 5 points! due to the increase of the credit. However then I can see other entries with the results of the payment (your balance has decreased by XX%) but the amount of points gaind was much lower compared to the one used, I got only +1 point back. I don't understand how this works, and it doesn't make much sense to me.

Why using a credit card and paying it off within a week affects my credit score? If that is the case, what's the point?

Thanks,

[Anonymous]

The amount that should be what matters in terms of impacting your score is reported utilization.  It could be a matter of timing.  If you are making the big purchase and your CC balance is being reported to the bureaus before you are paying it off, that could be doing it.  What is your limit on that card?  If you were to make a purchase and pay it off that exact same day it wouldn't be a possibility that it gets reported.  You'd have to look at your statement date, reporting date, etc. but honestly it's not a huge deal IMO as utilization is just a month to month thing.  You may lose 5 points now, but you'll just get them back when your balance reports back low again the next month.