Credit Score Utilization and 6 Point Drop

[Anonymous]

Hi Everyone,

Quick question about my utilization and recent 6 point drop. I typically pay my balance down before my statement generates so there isn't much fluctuation in what gets reported to the credit bureaus.  Last month I didn't do it, and my balance was about  $72 higher than average. I get a FICO 8 experian score with my AMEX card, and noticed a subsequent 6 point drop to 760. Obviously,I shouldn't be worried as my score is still very good. Is that decrease most likely due to the higher balance? My utilization increased from 18-20%.

Thanks in advance,

MG

[Appleman]

Best guess is that yes, the change was the reason for the drop. Scores have a complex (hidden) forumla but as you stated, still a very good score!

[RonM21]

Yes it probably is. But as you said, no big worry. You have a nice score.

[Anonymous]

Try going back to your other utilization next month and if you get the points back and that was the only variable changed you know it was the reason.  You can also play around from month to month with that utilization % and see how it impacts your score.  Since all portfolios are different, it can have different impacts to different people so you've got to see what utilizations really seem to impact yours.  Utilization is fun as it only takes 1 month to make/see a difference, + or - rather than other factors that take months or even years.  Unless you're applying for credit it's fine to play around for a couple of months with utilization.