Just paid down my Amex to $1840 on a $6600 limit card. I got an alert from myfico and signed in to find a drop in my score of 5 points. What's that all about? I thought it was good to have it below 30%? I could have used the $900 I just paid on that card 
I'm feeling frustrated.
I'm feeling frustrated.
@Anonymous wrote:
Just paid down my Amex to $1840 on a $6600 limit card. I got an alert from myfico and signed in to find a drop in my score of 5 points. What's that all about? I thought it was good to have it below 30%? I could have used the $900 I just paid on that card
I'm feeling frustrated.
You only want one card reporting a balance and you want it to be 1-9%. Yes, it's good to have it below 30% as that's better than 50%, which is better than 60%...you get it, there's always something "better" - you want the best, which is 1-9%. Sometimes though we can't have the best, so do what you can, keep paying down the balance and try to stay between 1-9%.
I apologize... I'm still confused.
I was at 40% and paid it down to under 30% and my score dropped 5 points. So how is 30% better than 40%? I get that the ultimate goal is 1-9%, but I don't get how 40 is better than 30. I don't know when I'll be able to get to 9%, so from what just happened to my score, it looks like i should stay at 40% to gain back those points? And only pay it down when I can do a big payment to 9%?
(This is my only card with a remaining balance)
Thank you for your response, btw
I was at 40% and paid it down to under 30% and my score dropped 5 points. So how is 30% better than 40%? I get that the ultimate goal is 1-9%, but I don't get how 40 is better than 30. I don't know when I'll be able to get to 9%, so from what just happened to my score, it looks like i should stay at 40% to gain back those points? And only pay it down when I can do a big payment to 9%?
(This is my only card with a remaining balance)
Thank you for your response, btw
@Anonymous wrote:
I apologize... I'm still confused.
I was at 40% and paid it down to under 30% and my score dropped 5 points. So how is 30% better than 40%? I get that the ultimate goal is 1-9%, but I don't get how 40 is better than 30. I don't know when I'll be able to get to 9%, so from what just happened to my score, it looks like i should stay at 40% to gain back those points? And only pay it down when I can do a big payment to 9%?
(This is my only card with a remaining balance)
Thank you for your response, btw
ya, what ronpa said...it's always better to have less debt so don't worry about 5 points, that's a sneeze, just keep paying down your debt and you will see gains as long as other negative factors are not incurred along the way.
No, don't only pay it down when you can make big payments, that's silly unless you're investing that extra money in an inestment vehicle that is earning more interest than...oh forget about that, just pay down your balance with as much as you can whenever you can. Every dollar less you owe is less in interest you are paying, remember, interest!
