@Deelow5533 wrote:Good morning everyone.. So I have been paying down my credit utilization which is very high 85%. So i paid $200 on a card and TU took 15 points away from my score. Mind you I am still 77% utilization so not paying it off but getting it down. They reward when it goes up but deducts when it comes down. I thought that was the whole point is to get under 30% usage. Please help me understand
There's no cause and effect relationship between the $200 payment and the score decrease. Just keep paying things down and your scores will increase steadily. And don't stop at 30%; 30% is still pretty high.
@Anthonypage wrote:Credit Score Calculation: Credit scoring models take into account multiple factors when calculating your credit score, including credit utilization, payment history, length of credit history, and more. While credit utilization is important, it is just one piece of the puzzle. Timing and Reporting: Credit card balances and(not) utilization are typically reported to credit bureaus once a month, usually around (after not around) the statement closing date. So, even if you make a payment to reduce your balance, if it's not reflected in the reported balance, (If you make a payment it is reflected on your reported balance)it may not (It will) immediately impact your credit score. ( It will reduce your balance. Thats whats reported)Percentage Threshold: While reducing your credit utilization below (28% not 30) 30% is generally recommended, credit scoring models may consider other utilization thresholds as well. The impact on your credit score can vary depending on the specific threshold used by the scoring model. Overall Credit Health: Your credit score is based on the overall health of your credit profile. If you have other negative factors, such as late payments or high levels of debt, reducing your credit utilization alone may not have a significant positive impact on your score. Individual Scoring Models: Different credit scoring models may weigh credit utilization differently. It's important to remember that your credit score can vary depending on the scoring model used by lenders. Upsers
Welcome @Anthonypage
Made some adjustments to your posts to correct some things. Welcome to the forums.
