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credit score

New Member

credit score

can ay body tel me why do you get penaliized very time you use your credit card evn the smallest amount .  FICO will drop your score. 5 10 15 points then the next month they will give back less than they took from you. even if you paid it back in full. i makes me feel not to use my credit cars and buy cash.

Message 1 of 7
6 REPLIES
Community Leader
Senior Contributor

Re: credit score


jtjr wrote:

can ay body tel me why do you get penaliized very time you use your credit card evn the smallest amount .  FICO will drop your score. 5 10 15 points then the next month they will give back less than they took from you. even if you paid it back in full. i makes me feel not to use my credit cars and buy cash.


Nobody will be able to answer why that is is true for the reason that it is not true.  Each transaction made on a credit card does not cause a person's score to go down.  

 

If you can tell us what credit cards you have now, we can help you develop a plan that will enable you to use them in a way that will cause your score to gradually go up over time.

 

We'd need to do know, for each card that you have...

   * The name of the credit card

   * The credit limit on that card

   * The "amount owed" on the last statement

   * The balance you have on the card as of today

 

Also helpful would be what it is that you are using to check your credit reports and credit scores.

Message 2 of 7
Senior Contributor

Re: credit score

Good reply from CGID above.

 

Unless you only have one CC with a very small limit and you are making a purchase of a couple of hundred bucks and letting that balance report, I can't see a way that your credit scores would take a hit from using your CC.

Message 3 of 7
Super Contributor

Re: credit score


jtjr wrote:

can ay body tel me why do you get penaliized very time you use your credit card evn the smallest amount .  FICO will drop your score. 5 10 15 points then the next month they will give back less than they took from you. even if you paid it back in full. i makes me feel not to use my credit cars and buy cash.


It's just not true.

FICO8 EQ 721 TU 772 EX 777 Total revolving credit 500k
Message 4 of 7
New Member

Re: credit score

Thank you for you reeply. nobabody seems to belive me that this is actually happeing to me. i use fico monitorng any changes they let me know. your ? i have 4 cc jet blue bank america with big crdit limits i now have a balance os 1200 on one my score is 733 but it was at one time 765 it is just like a yoyo thants jtjr

Message 5 of 7
Community Leader
Senior Contributor

Re: credit score

It's hard to read your messages.  Here is a more organized format that will help us understand what credit cards you have and what their status is.

 

CREDIT CARD #1

Card Name =

Credit Limit =

Amount Owed on the last statement =

Balance on the card as of today =

 

CREDIT CARD #2

Card Name =

Credit Limit =

Amount Owed on the last statement =

Balance on the card as of today =

 

CREDIT CARD #3

Card Name =

Credit Limit =

Amount Owed on the last statement =

Balance on the card as of today =

 

CREDIT CARD #4

Card Name =

Credit Limit =

Amount Owed on the last statement =

Balance on the card as of today =

 

Just hit the QUOTE button, or you can copy and paste this into your reply.  Then put in the answer after each = sign.

 

PS.  Nobody doubts that your score is changing.  What we are certain of is that it can't be caused by each time you use a credit card.  For one thing, the credit bureaus don't know each time you use each credit card.

Message 6 of 7
Highlighted
Senior Contributor

Re: credit score


jtjr wrote:

Thank you for you reeply. nobabody seems to belive me that this is actually happeing to me. i use fico monitorng any changes they let me know. your ? i have 4 cc jet blue bank america with big crdit limits i now have a balance os 1200 on one my score is 733 but it was at one time 765 it is just like a yoyo thants jtjr


There are many, many more factors that make up your credit score outside of credit card utilization which is the only sector (30%) of your score that's impacted by credit card use.  The actual USE of your cards though in and of itself has no bearing on that 30% slice of the pie.

 

In addition to providing the information that CGID requested above, it would also be helpful if you gave a little more history on your profile such as the number of accounts you have on your credit reports, your AAoA, amount of inquiries (and how old they are), when you latest account(s) were opened, whether or not you have a current installment loan (auto, mortgage, etc) and if so about how much of it is paid off, if you've ever had any late payments on any accounts and if so how many accounts, what severity of late payment were they (30 day, 120 day, etc) and how old they are and/or any other negative information you may have.

 

All of these factors above can influence your scores (and that list isn't everything) so knowing more about your profile will help everyone give you the best feedback.

Message 7 of 7