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New Visitor
Posts: 2
Registered: ‎06-13-2007
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my revolving balances is too high will my score drop monthly?

Hi, two months ago I checked my credit score and it was 700, I just checked it last night and it dropped down to 650. This is very harsh for me bc I pay everything on time and usually pay it all off before the end of the month. One of the things affecting me on my credit report is a credit card  balance of $12000 dollars.(I currentl have %36350 available credit) but recently purchased a jet ski with it and now my  Ratio of my revolving balances to my credit limit is %35. I am relly confused I donno what to do. Should I get a loan instead? Does this mean my score will continue to drop evrymonth untill the balance is really low? Can someone help.? Thanxs
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
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Re: my revolving balances is too high will my score drop monthly?

Util is very important. The increased balance dropped your scores. You should have made this purchase via an installment loan (personal loan).
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Posts: 8
Registered: ‎03-04-2007
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Re: my revolving balances is too high will my score drop monthly?

Yes paying monthly can raise your credit score incrementally. A few months ago I had $17k spread out over 3 credit cards roughly as such: Card 1 $12k, Card 2 $3k, Card 3 $2k. I paid off Card 3, the lowest balance, and saw an immediate jump of 41 points.  The jump was from the 660's to just above 700. I have since paid off Card 2 and am waiting until the end of this month for the zero balance on that card to be reflected on my credit reports. I assume I will have another jump but wont really know if and how much until it hits.
 
Card 1 is also down to about $10.5k now so that should also help. Overall my Utilization rate has done way down and that is what changes your score I believe.
 
I was a bit ticked when I checked my credit score out of the blue a few months back (after years of not paying attention) and realized that my score was not in the mid 700's or higher. It all had to do with credit card utilization rates. I have great credit otherwise. I, like you, charged my new toys (HD TV, Surround sound system, etc.)
 
It is comforting to know that my credit is going back up with my payments to the cards.
 
I think the poster above me is correct in saying get a loan instead of charging it. Lesson learned.
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