My FICO score went up 20 points November and then dropped 20 in January. What gives?

[Anonymous]

---

@Anonymous wrote:

Could it be possible that paying off my credit card before the monthly report, leaving a $0.00 balance with a 0% credit utilization could be harming my credit score growth?
 

---

When you have only 1 credit card, that's exactly what happens.  You are seeing a penalty for "no revolving credit usage" since without a balance reported the algorithm doesn't know that you're using your credit card. 

Bringing your utilization (reported) up to 10% would harm your score over letting a 1%-8.9% balance report.  Most report no changes along that 1%-8.9% range, although a couple of people have cited that perhaps 4%-6% is their "sweet spot" where they may have gained 1-2 points over a different percentage in the 1%-8.9% range.  I've never experienced that, though. 

[HeavenOhio]

---

@Anonymous wrote:

---

@Anonymous wrote:

Could it be possible that paying off my credit card before the monthly report, leaving a $0.00 balance with a 0% credit utilization could be harming my credit score growth?
 

---

…although a couple of people have cited that perhaps 4%-6% is their "sweet spot" where they may have gained 1-2 points over a different percentage in the 1%-8.9% range.  I've never experienced that, though. 

---

I've never had an issue with tiny balances, e.g. under $20. But I've lost points for going over about 5%. I have to qualify that by saying "about 5%" because I'm not exactly sure where the breakpoint was when that happened.

[Anonymous]

If you want to increase your score, you should consider adding 2 more credit cards.

[Anonymous]

Won't applying for two more credit cards hurt my credit score though?

[SouthJamaica]

---

@Anonymous wrote:

Won't applying for two more credit cards hurt my credit score though?

---

Yes indeed it will. So don't.

[Anonymous]

---

@Anonymous wrote:

Won't applying for two more credit cards hurt my credit score though?

---

Short term yes, medium term probably even, long term it would help a little.

[Anonymous]

Hmmm. It might not be a good idea for me. I am trying to buy a car next month. I need to get my score as high as I possibly can.

[Anonymous]

Definitely do not apply for anything else prior to going for your car loan.

[HeavenOhio]

Definitely don't apply for any other new credit when you're about to apply for a loan. Besides the fact that you won't know exactly what will happen to your score, lenders don't like it when they see that you've recently applied for or added credit.

That said, adding two cards when the timing is right is a good idea.

[Gmood1]

With decent scores and payment history it doesn't make an ounce of difference applying for a Auto loan after a CC. This from experience,.not from what's posted on the internet.