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Score dropped 70 points - Maxed out for 0 interest

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eanderson23
New Visitor

Score dropped 70 points - Maxed out for 0 interest

Aghhh! My husband and I do not use credit cards (as of this summer, his credit score was over 800, mine around 740). We purchased a hot tub with a 60 month 0 interest special through the hot tub store via Wells Fargo. I maxed out my card balance (about $5600) and then about $10,000 onto my husbands card. We set the auto payments so the cards are paid off before the 60 months. However, because of maxing my only open credit card, my credit plummated to 639! (via Mint score, I haven't ran a full report since using card) Please please help! Do I pay it off completely? Just double my payments? How can I fix this?? I had absolutely NO IDEA that this would impact my score so badly. 

Message 1 of 10
9 REPLIES 9
lqiwwipl
New Visitor

Re: Score dropped 70 points - Maxed out for 0 interest

I maxed out my Discover It card because i had a 0% intro for 15 month and i did get hit very hard on this. What is the total utilization for all of your cards combined? After maxing out my Discover Card my credit utilization was give or take 75% and when i brought it down to 30% i started to see some improvement. Went from 620 on experian to now 680 in a month by doing this. Just my 2 cents, increase available credit lines higher or bring down utilization and that should help.

Message 2 of 10
GatoradeZeroGuy
Frequent Contributor

Re: Score dropped 70 points - Maxed out for 0 interest


@eanderson23 wrote:

Aghhhh! My husband and I do not use credit cards (as of this summer, his credit score was over 800, mine around 740). We purchased a hot tub with a 60 month 0 interest special through the hot tub store via Wells Fargo. I maxed out my card balance (about $5600) and then about $10,000 onto my husbands card. We set the auto payments so the cards are paid off before the 60 months. However, because of maxing my only open credit card, my creditplummatedd to 639! (via Mint score, I haven't ran a full report since using card) Please please help! Do I pay it off completely? Just double my payments? How can I fix this?? I had absolutely NO IDEA that this would impact my score so badly. 


There is a massive penalty for having a card above 89% usage, so as you pay it off, your score will increase. Also another penalty for only having one card and not a minimum of three, so double whammy there.

 

But if you do pay it off, the score will go back to what it was at before, for what it's worth.

 

The score from Mint is a vantage score, so I would consider getting your FICO score from here myFICO  (free plan or paid) and from Experian.com (Free plan or paid plan) to see where you actually stand in terms of your FICO credit score.

 

The other risk for having a card at such high utilization is that other lenders might see you as being underwater, and might take action against your accounts. balance chasing. 

 

I might personally pay off 12% of the card so you're not maxing out the card and then enjoy the 0% interest. And use that money to invest/save while taking advantage of the 0% interest.

 

Unless you're trying to apply for credit sometime in the near future.

 

 

 

 

 

 

Starting FICO 8s

Current FICO 8s

Current FICO 9s



Message 3 of 10
Revelate
Moderator Emeritus

Re: Score dropped 70 points - Maxed out for 0 interest

Single card you are getting hit with max individual utilization (very small penalty) and max aggregate utilization (very large penalty).

 

Short of paying it down aggressively or opening up more credit cards which isn't really the right time with the current score there isn't a lot you can do about it.

 

On the flip side unless you need your credit for something right now, don't sweat it.  Also I don't know what score Mint provides it may just be an educational one, but maxing out aggregate utilization is a big penalty up to around 100 points on a pretty file.




        
Message 4 of 10
OmarGB9
Community Leader
Super Contributor

Re: Score dropped 70 points - Maxed out for 0 interest

I would just pay it down under 89% so the hit will be lessened, and more importantly, to not spook other creditors. 


Last App: 9/22/2022
American Express Platinum Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 10
eanderson23
New Visitor

Re: Score dropped 70 points - Maxed out for 0 interest

This is the only card I have! I put $1500 on it last night (I posted in here and then made a payment all within like 20 minutes of seeing that lol). So I'm at about 71% right now, hoping that helps soon! 😩 Thank you!

Message 6 of 10
eanderson23
New Visitor

Re: Score dropped 70 points - Maxed out for 0 interest

This is the only card I have! I put $1500 on it last night (I posted in here and then made a payment all within like 20 minutes of seeing that lol). So I'm at about 71% right now, hoping that helps soon! 😩 I really don't want to open more cards right now, I feel like that looks like I'm drowning and in desperate of more credit?! 😅

Thank you!

Message 7 of 10
eanderson23
New Visitor

Re: Score dropped 70 points - Maxed out for 0 interest

This is the only card I have and don't want to open another one, if possible. 

I put $1500 on it last night (I posted in here and then made a payment all within like 20 minutes of seeing that lol). So I'm at about 71% right now, hoping that helps soon! 😩 I know Mint is 100% accurate, but it's not considered an inquiry at least. 

Thank you!

Message 8 of 10
SouthJamaica
Mega Contributor

Re: Score dropped 70 points - Maxed out for 0 interest


@eanderson23 wrote:

Aghhh! My husband and I do not use credit cards (as of this summer, his credit score was over 800, mine around 740). We purchased a hot tub with a 60 month 0 interest special through the hot tub store via Wells Fargo. I maxed out my card balance (about $5600) and then about $10,000 onto my husbands card. We set the auto payments so the cards are paid off before the 60 months. However, because of maxing my only open credit card, my credit plummated to 639! (via Mint score, I haven't ran a full report since using card) Please please help! Do I pay it off completely? Just double my payments? How can I fix this?? I had absolutely NO IDEA that this would impact my score so badly. 


If you pay the balance down to 28% of the limit, you'll remove any penalty.


Total revolving limits 721200 (619200 reporting) FICO 8: EQ 725 TU 723 EX 700

Message 9 of 10
Revelate
Moderator Emeritus

Re: Score dropped 70 points - Maxed out for 0 interest


@SouthJamaica wrote:

@eanderson23 wrote:

Aghhh! My husband and I do not use credit cards (as of this summer, his credit score was over 800, mine around 740). We purchased a hot tub with a 60 month 0 interest special through the hot tub store via Wells Fargo. I maxed out my card balance (about $5600) and then about $10,000 onto my husbands card. We set the auto payments so the cards are paid off before the 60 months. However, because of maxing my only open credit card, my credit plummated to 639! (via Mint score, I haven't ran a full report since using card) Please please help! Do I pay it off completely? Just double my payments? How can I fix this?? I had absolutely NO IDEA that this would impact my score so badly. 


If you pay the balance down to 28% of the limit, you'll remove any penalty.


That maybe is a limit on single tradeline utilization, maybe, but there's still the 9% line for aggregate in the single tradeline case.  

 

FWIW the single tradeline was north of like 63% personally, never did nail that down.




        
Message 10 of 10
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