lost 100 points in less than a week:(

[Anonymous]

hello...this is my first post but i been looking in the forums for some time.

 i been in file with trans union from 1994 but never have a credit card or anything till 2014

open a secure credit card in march 2014 with bank of america.deposit 300 $

use the card and pay in full every month.after 7 month i ceck my fico score on october 20 and show like this

trans union 705 equifax 719 experian 720

have only one hard pull with bank of america reported with trans union only.

no late payments.no badies,nothing bad in my credit file

apply on november 4 and got aproved for chase freedom for $ 500 credit line.

one week later my scores drops 9 points.

on november i ceck again my fico score and see a drop of 100 points

trans union 609 equifax 634 experian 635

i did use use the chase credit card $465 and see that in novermber 20 chase reported credit utilization 64%

since november 28 both cards are pay in full and have $0 balance.

can you  lose 100 points because credit utilization reported balance  465$ on chase freedom and 42$ on bank of america credit card

like i say...i have nothing bad in mu credit history.no late payment...nothing...only 2 credit cards boa 300 secured and chase freedom 500 unsecured

and 2 hard pulls reported only in trans union boa and chase freedom.

 75k income.any help or advise are welcome.thanks

[TrialByFire]

Utilization accounts for 30% of your score and can definitely have a major impact. You're currently at 63% utilization. But there's good news...util impact is only temporary, and if you paid your $465 freedom balance to 0, Chase will report it to the bureaus mid-cycle. You should see your scores recover in a few days.

[TrialByFire]

Also welcome to the forums!

I want to add this...try not to let more than 10% report for maximum scoring purposes. For example, pay the bofa card to 0 and try not to let your freedom statement cut with more than 40 or $50 on it. Unless you're gonna apply for new credit soon, try to keep it under 30% and you'll be golden. There's a lot of great info around here on this exact topic, enough to get lost in for a couple hours

[Shogun]

New account, drop in AAoA, high until, it all adds up, might have had a rebuke to in there.  But all in all not a bad thing.  Get the until down, let the accounts age.  You will be fine.

[Anonymous]

 How would folks feel about the OP opening another unsecured card with a potentially higher SL than the Chase, in order to be able to buy dinner without killing utilization so quickly?  Would it be a sound long term strategy while providing the bonus of immediate score relief with utilization?  If so, what companies come to mind first?  

[Anonymous]

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@Anonymous wrote:

 How would folks feel about the OP opening another unsecured card with a potentially higher SL than the Chase, in order to be able to buy dinner without killing utilization so quickly?  Would it be a sound long term strategy while providing the bonus of immediate score relief with utilization?  If so, what companies come to mind first?  

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Sounds like good advse. Hard for the op to keep his score up if he spends $200 and hits 20% utilization. Hard hit on his report would be a drawback but looks like every time he uses his card he kills his score. Good thing with chase is they are quick to report when the card is paid off. I noticed citi is much slower eventhough I pay my card off the day the bill posts the balance still shows on my report for the month. Other option would be to use a debit card to keep utilization low for the time being and in a year ask for a CLI.

[takeshi74]

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@Anonymous wrote:

can you  lose 100 points because credit utilization reported balance 

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Any impact always depends on one's crdit profile.  You have some credit history but with no cards you had and even with 2 cards you have thin profile.  Impact can be bigger for many things with such a profile.  You have to gradually build as your profile will only support small changes over a given period of time.  This will change as your profile thickens and improves, assuming responsible usage and management.

Revolving utilization is certainly a significant factor.  General advice is do not exceed 30%.  30% is far above ideal though.  With low limits it can be tricky to keep utilization low but you can pay down balances prior to report date.

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@Anonymous wrote:

since november 28 both cards are pay in full and have $0 balance. 

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That's good but keep in mind that a score is generated based on the data in a report.  Scoring models do not have access to your current account status and activity.  They can only refer to what is on the report being used as a data source.

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@TrialByFire wrote:
Utilization accounts for 30% of your score and can definitely have a major impact.

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Amounts Owed is 30%.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Revolving utilization falls under that and has a significant impact but Amounts Owed is not based only on revolving utilization.

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@Anonymous wrote:

 How would folks feel about the OP opening another unsecured card with a potentially higher SL than the Chase, in order to be able to buy dinner without killing utilization so quickly?

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I'm doubftul that the OP's profile would support another unsecured card right now.  The OP should add another card but might need to give it some time.  As shogun stated, it's not just revolving utilization but the hit to AAoA, the hit from the  HP's, etc.

Again, revolving utilization can be maanged by paying down balances prior to report dates.  it does not always require additional available credit though that can help especially with lower limits.

[Anonymous]

I've noticed after monitoring my report almost every day that it will fluctuate through the month. If you charged up that much doing a certain day and it reports it lowers your score till it reports again.

[Anonymous]

thanks so much for the help!!!.i will keep utilization under 10% pay off in full before due date and in couple months apply for one more credit card.this community forum it's been very helpful for me.thanks again

[Anonymous]

I am going to go against the grain here. Not only should you apply for another card, you should apply for two. I would suggest applying for a Capital One Platinum, and a Cap One QS1. Apply back to back, same broswer session, no waiting. They will probably start you off at $300/$500, but they will grow very quickly - easily to $3-5k in six months, as long as you use them a lot. You can request CLI after the second/third statement and they do an automatic increase after the fifth statement. If they grow like most they should go to $2300/$3500. Thats what mine did. And my file is anything but clean. When mine got to that level at the end of august I combined them into a single $5800 card and opened another platinum card, which has already been bumped up to $1500. In a years time when Chase is *ready* to give you a cli, you could have a $10k credit line at Cap One.