@Anonymous wrote:Hello,
So i have two credit cards, 2 thousand limit for one and 1000 for the other. My score just dropped 21 points because i'm at 34 percent for use for both. I'm new to this and am just wondering why utilization would impact my score? and how long does it take to bounce back from it when my use percetage is lower? i was on a roll as far as my score going up.
Which two cards are those? What are your FICO scores now?
While you do want to watch your FICO scores, it appears you are building a credit file. That means for the time being your focus should be on having a good relationship with these two CCC. The utilization is usage of the card. That isn't bad when you are trying to show the CCC you can borrow and pay back that money. The FICO score hit is temporary. At these limits, it is unavoidable, and so one strategy to use is to look for credit line increases. Depending on the cards you have, there are specific techniques you can use to get CLI, so your spend rate doesn't have such high utilization. Searching or asking on these forums will help you find out what those techniques are.
In the long run, it will work out fine.
Good luck!
keep utilization low and try to make payments before the statement dates . I learned that from others here and it definitely helped my scores increase. Heavy revolving credit usage can hurt your score as well as help it so only use cards for small purchases so you can pay the balance quickly. Good luck
Starting Score:Equifax 543
@Anonymous wrote:Hello,
So i have two credit cards, 2 thousand limit for one and 1000 for the other. My score just dropped 21 points because i'm at 34 percent for use for both. I'm new to this and am just wondering why utilization would impact my score? and how long does it take to bounce back from it when my use percetage is lower? i was on a roll as far as my score going up.
...others here have pointed out the bare bones utilization issues ...you posted this in the FICO Scoring forum ...you might find more information in the Credit Card forum ...hth
@Anonymous wrote:Thanks for the advice.My credit karma score is 643, it was 664 before the drop. The 1000 card is with Wells Fargo, platinum card. and the other one is Capital One platinum. I started with a 610 score just a few months back. I just got these cards like 3 months ago so it might be too early to ask for an increase but i'll try.
So, you have two new cards with good limits for your first cards. Others are working with $200 or $500 limits, so you are ahead of the game.
You've got the cards at ~$300 on the $1k limit card and ~$600 on the $2k limit card? That's fine. Are you able to PIF the amount on the statement each month? You should work on paying them down now, in other words high percentages of the amount outstanding on each statement, if not PIF, then you can charge new purchases like groceries and gas, then pay again, and I think that will help your relations with these CCC. My suggestion is the same; go ahead and charge up to those amounts, about 30%, and keep paying it down and you are likely to get CLI before too long.
The utilization is a part of your score, but early on, where you are now, the effect of short history and these being new cards is going to make your score extremely volatile. I suggest ignoring the FICO score for at least 6 months while you work on showing good payment patterns on these cards. As the cards age, you get CLI with these cards, keep the utilization at 30% or so and paying the amounts so you aren't just making minimum payments. WF and CapOne will be happy that you aren't out apping everything in sight, and paying attention to these two cards for a while.
Good luck!