score drops from using credit..how to handle little plunges

[fritscher]

Hi all

gee I am trying to keep my scores up but recently used my care credit card for some dental and vet work . I used 412 dollars.this I guess brought my util up to 13percent from 8 percent..my trans went down 8 pts ..i dont understand why ..i guess will have to pay it down asap the 412 dollars to get it back up..so would the scores not change say if you did not go over 10 percent util? i did not realize how much using credit effects your score especially since you pay it off. the note on fico says that the util went to 11 percent so guess that is the reason?

bummer to see scores drop even a little some days..mine seem to go up and down alot

thank you for sharing any ideas on this

[Anonymous]

If your utilization went up from 8% to 11%-13%, you crossed a threshold which is at 9% so yes, it's natural that your scores would drop.  Over time as you build your limits up and build your credit profile, a ~$400 purchase wouldn't even be a blip on the radar of utilization and wouldn't be something you even have to think about for a second.  I'm assuming your Care Credit account doesn't have a very high limit?  Since it's a Synchrony account there's no reason not to call Credit Solutions and ask to get the limit bumped up.  Just tell them you may need to get another procedure done in the next month and want to make sure you have enough to cover it.  Ask for something very high, like 5X whatever your limit is now and if that's too much they'll just counter you and give you whatever your profile supports.  That of course will instantly lower your utilization (when it reports) which will help things out.

[tmacar]

I dunno.  The only revolving credit utilization threshold I've ever heard about as far as FICO scores are concerned is 30%.  Over that and you have high utilization, and get hit hard for it.

Where did you hear about a 9% threshold?  If there are thresholds other than that 30% one, I really want to know about them.

[fritscher]

thank you so much for the feedback..my limit is about 9000 at care credit..i got a cli last december as originally was only at 1000..do you think I could ask for another increase after only 3 months? my credit scores are good etc..I never did hear of the 9percent threshold either..my goal is to get most of my cards below 10 percent but on those with lower credit limits that does not give you much to use so hopefully can get some of the limits higher

[fritscher]

a couple more thing..how high can you ask to have for new credit line for care credit? it is a hard pull thought right?

[Anonymous]

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@tmacar wrote:

I dunno.  The only revolving credit utilization threshold I've ever heard about as far as FICO scores are concerned is 30%.  Over that and you have high utilization, and get hit hard for it.

Where did you hear about a 9% threshold?  If there are thresholds other than that 30% one, I really want to know about them.

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9% is probably the most commonly talked about threshold on this forum.  It's mentioned literally every single day, several times.  In the Understanding FICO scoring section on the first page there are always several threads that discuss allowing only 1 revolver out of all revolvers reporting 1%-9% utilization.  That keeps you below the 9% threshold.  Then you've got 29% after that, 49%, 69%, 89%.  Each time you cross one, your score can increase or decrease depending on the direction you are traveling.  Aggregate utilization is always paramount to individual credit line utilization.

[NRB525]

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@fritscher wrote:

Hi all

gee I am trying to keep my scores up but recently used my care credit card for some dental and vet work . I used 412 dollars.this I guess brought my util up to 13percent from 8 percent..my trans went down 8 pts ..i dont understand why ..i guess will have to pay it down asap the 412 dollars to get it back up..so would the scores not change say if you did not go over 10 percent util? i did not realize how much using credit effects your score especially since you pay it off. the note on fico says that the util went to 11 percent so guess that is the reason?

bummer to see scores drop even a little some days..mine seem to go up and down alot

thank you for sharing any ideas on this

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How many revolving accounts (Care Credit plus any Credit Cards) do you have? How many of those are reporting any sort of balance now?

What is your overall utilization of your available revolving credit? Leaving out mortgages or auto loans for the moment.

What is your TU score, and is that from here or from Discover?

An 8 point move is really not much to be concerned about. We can speculate what might have caused it, but we obtain credit to be able to use credit. Unless this is a mortgage score and you are applying for a mortgage very soon, an 8 point move likely has no influence on your life.