💡 *UPDATE:* My FICO score via Experian updated. It dropped from a 763 to a 751 (loss of 12 points)✌ 📲 MAXREWARDS - Manage credit cards & rewards! Get Gold level for free with PROMO CODE = markr markscreditcards.com/maxrewards 💳👉VIEW CREDIT CARD OFFERS! markscreditcards.com/offers
@@tayetiwoni - It didn't. The video showed my VantageScore 3.0 via TransUnion, which dropped 27 points. My 'official' FICO 8 score via Experian dropped 12 points for the same reasons. These are 2 different scores from 2 different scoring models.
@@MarkReese yea my score literally went down 40 points this month. I spent about 4.5k with a 6k limit. In between that time I got a CLI to 10k and payed off the debt as well. But the bureau didn’t report it to any of the three unions, so my score is still down 40 points
This definitely goes to show how important it is to have low credit utilization not only for your accounts as a whole but on an individual basis as well. For those who want to maximize their credit score across the board, that is definitely something to keep in mind!! Making those early payments before the statement date and then paying your card off in full by the due date is key! Thanks for sharing your experience Mark, and I'm sure we'll see that score back up in no time.
@@sjg6158 I agree! It’s also important that people know that by the due date you need to pay everything off in full though. What we’re talking about just has to do with the statement close date. Great point through!
@@SpencerJohnsonOfficial No Sir! What SJG said above is not the same as what you said. SJG was saying that, when payments are made, be sure to leave a few dollars on it as balance for the next cycle. Typically, I leave about $2 balance. It has been well established over the years that leaving $0 balance on ALL your revolving accounts hurt your FICO score. There must be a little balance left there for FICO to compute into their equation in order for you to gain the optimal score. This is what SJG meant by saying "Don't pay it all." You're contradicting this well-tested strategy with your statement "you need to pay everything off in full though." With all due respect, you're mistaken. You need to have at least 60% of your credit card accounts have REVOLVING balances in order for FICO to give you the maximal points. If you have 10 credit cards, you can leave about 3 of them with $0 balance each month, while leaving a very small sum (such as $1-$2 balance) for the remainder 6 or 7 of the accounts. That is key. If I owe $200 on a card, I'll pay $198 before the statement date, and on the statement date they will report $2 balance to the credit bureaus. If you leave all 10 credit cards with a $0 balance, your FICO score will drop. That is a FACT!!! In fact, Wells Fargo is notorious for waiving off my $2 balance every month as a kind gesture to me. If I owed $200 and I paid $198, rather than put a balance of $2 on my account on the statement date, they will waive the $2 (as a favor to me thinking I ran out of funds to pay that paltry sum) and instead report $0 to the credit bureaus on the statement date. They did this as a courtesy to me until I called and protested this act of kindness (Imagine that, LOL). When the representative went to confer with his supervisors, he was given a surprise lecture about the inner workings of the FICO scoring system. There must be a revolving balance on some of the accounts for FICO to use to grant you the optimum score for the next cycle.
@@osikanii With all due respect, if you're saying to leave a balance on your card month over month that you'll be paying interest on, that is not good advice. I think you may be misunderstanding me. All I'm saying is that you want to leave a balance on your card account through the STATEMENT CLOSE date, but that balance needs to be paid off before the BILL DUE date to avoid paying interest. You never have to pay interest to increase your credit score. Hopefully we're on the same page!
Great overview of what can go into a significant credit score decrease Mark! Having said that - 781 is still a great score, but the overachiever in me would be sad I'm not in the 800 club anymore so I get where you're coming from 🤣
@@CheekyBird790 Interesting strategy you got there! 49 points is a big drop! Definitely when you have a higher balance going from $0 - $3k, that would definitely result in a larger drop than say a $2.5k to a $3k. If I really want to max out, I prefer the All Zero Except One (AZEO) method if I'm shopping for a loan product or something to get me that extra credit score juice beforehand!
@@MarkReese Yeah, that is why I put major/large purchases on my business credit cards, which does not report to the personal/consumer credit bureaus and therefore do not affect my personal credit. Mark knows this already, obviously. He has his own reason for using a personal credit card rather than the many business credit cards he has acquired over the years.
Excellent teaching on this Mark! I was struggling to understand the closing dates and exactly how to keep that utilization down to get an increased score and you nailed it with the explanation.
I recommend Roy to you needing effective credit repair service and they did well fixing my report in 14days. I had all negative information deleted, tradelines added and my score got up to 800+ with no hassles.
This drives me crazy. Happens to me a few times a year. I am not smart enough to make sure balances aren't showing before the cards report to CB's. Personally I think this way of calculating is unfair and potentially a punishment for folks who may need a higher score snapshot for a mortgage or car loan. My score typically is in the 820-830 range and to see a almost 30 point drop because I paid my $8k Amex bill before it was due....but after the report day is CRAZY.
I recommend Roy to you needing effective credit repair service and they did well fixing my report in 14days. I had all negative information deleted, tradelines added and my score got up to 800+ with no hassles.
On the plus side, if you're going to have a high utilization report on a card, it's best to use a Chase card, because as soon as the balance goes back to zero they report the zero balance to the credit bureau, instead of having to wait until the next statement close date.
Yeah, I feel you Reese 🤝. I went well over my utilization by 58% 💯. When I transferred that balance to my highest credit 💳 limit. Then paid, the the statement balance. My utilization, went from 6% to 3%‼️My score Jumped 16 points ✅. So I understand why you don't care. Your score will jump 🦘🦘 back two 800 in no time 🤝😊
That's what's really hurting me. Not many accounts, in my name. Technically, only 1 hard inquiry is reporting on my credit report. And I need to boost my credit 💳 limit 💯
My credit score was a 761 and it dropped 56 F'ing points today. Now I'm under 700 overall. I don't understand. I've never missed a payment and don't use my credit cards as much as other people do. I am not happy about this at all.
thanks Mark.....I just had a drop of 17 points. The only change was a reduction in my only credit card balance. Utilization rate is 0%......I have no idea!!!
Based of experiences as someone who has had +550k personal CL & 843 CS in 2020, the easiest way to get 27 back by paying off your top 2 CCs or the mid option increasing your CL with lenders who accept soft pull as Discover it & then ask them to transfer your call to the upper CSR to increase your CL more than first CSR does, & remember the real FICO number has mortgage, auto, loans, & different models rating so no worries IMO.
Here's a good overview of what likely happened: www.cnet.com/personal-finance/credit-cards/advice/heres-why-your-credit-score-dropped-after-paying-off-your-debt/
Another question I have chase sapphire preferred and capital one venture cards I also have the Amex Hilton honors card . I’m wanting to build points for travel credits which card is best to use on daily spending restaurants, grocery, Bills ect
@@Holyface145 - Up to you. Choose the cards that offer the best value in each category. I'd personally do CSP for dining & travel. Hilton Honors for gas & grocery. C1 Venture for non-bonus spend.
Credit Karma scores are useless scores and do not ever match the actual scores used by banks. My score used by my bank is 847 and credit Karma shows it is as 819.
23 point drop. The only thing that changed was paying a credit card balance down to 0 over a 3 month period that at its highest was a 27% utilization. Make it make sense?
Ok i am very frustrated, im using All the "Self" tools which boosted my credit 77points, BUT today it dropped 35points with NO CHANGE, NO EXPLANATION at all. I think the credit system is a scam designed to keep the working class the struggling class!!!
Why would my credit drop 42 points on Kredit Karma, if my bank credit card went from 575 to a 0 balance. I decreased my balance to 0. Doesn't make any sense. Really bummed out. It's not like I closed the account.
I've had mine drop because I usually pay all my cards off before the statement so no activity is showing up but if I let it occasionally bill out then pay I've seen my score go up.
very good information. My overall credit utilization is 3% but I have 3 cards that have a 10% utilization. My credit score only dropped 8 points but like you say, it will rebound over the next few months. Current score 744 vantage score. What irks me is that my small drop put me back into the Good category instead of Excellent. So I get why some people would be more upset over little drops.
I applied and they dropped it and I didn't qualify :( I'm bummed. Will It be able to go back to normal ? I barely started my credit journey and I got it to 600 and it dropped 20 points.
If the reason for the drop is just an inquiry, yes, it can go back up over time. Big score changes during the early months of building credit are common. Use your card responsibly and you should be fine.
@@MarkReese thank you ! That eased my anxiety. Yes it was the inquiry. I should be smarter in how I used it. It's tough building credit especially when you're just a beginner.
@@blavk650 - well, done on getting the journey started! Here's a link to another video you may find helpful: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-nMJwmeWptVQ.html
It could be. The score drop will vary widely based on your total credit limits and individual credit limits. You may also see larger fluctuations in your score if your overall credit profile is still in the first year or two of building history.
I recommend Roy to you needing effective credit repair service and they did well fixing my report in 14days. I had all negative information deleted, tradelines added and my score got up to 800+ with no hassles.
Same thing just happened to me. Did a balance transfer. But the card that’s now $0 hasn’t reported yet, so it looks like I have 2 cards with a high balance 😓
Mark - do you have trouble managing all of your balances with all the cards you have? It seems overwhelming. I only have four, but even those are tough to manage sometimes to ensure I have a small but not no utilization each cycle. Sorry your score dropped. Mine dipped a few months back, but came right back the following month, especially after I got a credit limit increase with a soft pull from BoA.
I've paid off my Capital One card to zero. My billing cycle will end July 11th, and my due date is August 6th. So I should charge something today and pay it down below 30% by tomorrow since that is 3 days before the end of my billing cycle?
@@shaunsmith8780 - Yep that's still fine, especially if it's every once and awhile. However, I personally wouldn't want a $0 balance every month as that could cause the score to become stagnant. Stated differently, I wouldn't pay my card to $0 right before the closing date every month.
I have a store card that I've had for a few months. I haven't used it yet, but I plan to within the next few days. I have the cash for what I'm buying, but I want to build credit. Do I charge the full amount ($800, limit $1000), then pay it off within a few days?
If the goal is to build credit, I personally would not charge $800 and let the full balance get reported. That would be at 80% utilization which would likely lower your score temporarily. Consider this instead... 1. Charge the $800. 2. Make an early payment (Payment #1) for _most of the balance,_ (e.g. $750). 3. That would leave $50 left over. Allow that balance to get reported (a 5% utilization) and get your statement. That statement will show you have $50 due by a certain Due Date. 4. Pay off the remaining $50 on any day you like before the due date (Payment #2).
@MarkReese thanks! Yes, I'm definitely trying to build credit. At the moment, I'm unscorable. Somehow, I was approved for a Capital One unsecured card, a Lowe's, PayPal, Rooms To Go, and Amazon card. I've had them almost 3 months. I've written down all statement dates and due dates, and I plan to have them at zero a few days before the due date. I've watched lots of videos, and it's so confusing.
@@shaunsmith8780 - It'll likely be anywhere from 3-6 months. Here's a link to an article by Experian: www.experian.com/blogs/ask-experian/how-long-after-getting-first-credit-account-will-score-created/
My credit utilization is 4%. However, my score went from 750 down to 737 not from credit cards but due to a new car lease. How long does it take for that to recover?
Hi Elizabeth - I don't have a way to calculate how long the rebound will take. Adding more debt to your credit report nearly always drops your credit score.
how come my credit score dropped does it have anything to do with the credit card company reports to the credit bureau sometimes reports a zero balance sometimes reports a balance I am guessing that’s what could be the problem have to leave a balance, or leave a zero balance to be reported to the credit bureauwhat is your thoughts?
I don't have a way of knowing what caused a change in score without seeing the full credit report. Score fluctuations are normal, and yes, different balance amounts getting reported each month can cause those changes. My score changes all the time. As long as you use your card responsibly and ensure high balances don't get reported, there's nothing to worry about.
Sorry but I don’t put much faith in what Credit Karma says. I use My Fico and Experian/ Equifax. They always seem to be more accurate in what’s going on with my credit picture.
I recommend Roy to you needing effective credit repair service and they did well fixing my report in 14days. I had all negative information deleted, tradelines added and my score got up to 800+ with no hassles.
How did you get the limits up to 10&20k? How long have you been building your credit? How many credit cards do you have and why? Congrats on the new camera equipment.
1. I simply got approved for those limits; did not do anything special. 2. Building for 14 years. 3. I have 40+ cards. Here's a link to a video about it: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-5UN9uINM1f4.html
So for your credit score, even if you're overall utilization across all your cards is low, do you still get negatively affected if one or more of your cards individual utilization is high?
I’m having issues with a couple of CC issuers. The first one I paid down a $3,800 balance to zero before the August statement dropped. As of today, they still have not reported the payment to the credit reporting agencies and the balance still shows as &3,800 while my account statement balance is zero. This particular CC issuer has been having a lot of IT issues the last 3 months with basic services. On another card with a different issuer, I put a $4,000 charge on it with the intention of paying it off before the statement closed in order to keep the balance reported to the credit bureaus low. Th CC issuer reported the $4,000 balance before the statement dropped and before I made the payment. I thought that balances were reported as of the statement dates. Is that incorrect?
@@MarkReese Hi Mark. No, the balances haven’t been updated since June, 2022. The $3,800 balance from June is still there. Some reports on social media say it will be updated by 12/31. Its’s not US Bank nor any of the large CC issuers regularly discussed on your channel. It’s a retail co-branded card. The service had been pretty good up until June when they did a “system upgrade” that was a disaster.
My credit wise score went down 13 points after adding a cell phone bill it went from 743 to 731 but my Experian was at 746 and today shot up to 751 so I'm a little confused! Experian was just updated this morning I was prepared for the score to go down but if Experian stays at 751 that will be great!
@@MarkReese says my balances went up. But that’s because my statement balance was 48/500 on my credit card which is 10% credit utilization. Is that are good thing. Also I just opened this line of credit last month. Never have, I Once owned a CC before this. But that shouldn’t effect my score that much should it?
Honestly seeing it take a 27 point hit for one account at 57% is way more than I would have guessed. I can see a 5 to 10 point but over 25 points for one card. Wow. I am definitely going to share to one friend. He had a big point drop because he had to do stuff but I told him once he paid it back it would be right back. And it did. But he only has 2 reporting lines. I know I have seen a 36 point. For me. But mine was way way higher utilization on my highest card so I expected a big drop that month. Like you say. Doesn't matter. It will bounce back as Long as you know you have a plan. But yea. Thank you so much for sharing this. This is a real wow moment. Take care, sir.
My credit score dropped from 821 to 796. No derogatory marks, no late payments, total credit utilization is 4% on a single card. Made no major purchases lately and no credit inquiries. I do not get it. I’m not against credit scores. But I think any credit score change always should have to be accompanied by a specific reason it dropped. This is more of a mild annoyance than anything but this is just absurd. There is no rhyme or reason to some of the moves.
Ameteur! That's nothing, my scores dropped 181 points and I don't care either! lol. And yes it was by choice, and yes I'm making out very very well doing what I did. And yes, when I'm done doing what I be doing it will skyrocket back up again. :)
Mine just went down 24 points for the same reason I used a card that only has a $1000 CL to about 80% (even though I have like $40K in available credit) 😅
I’m pissed off because I loss 12 points when it’s never been negative as long as I keep my credit cards under 10 percent I just lost 12 points for a 8 percent balance on a 3k card I’m bout to stop using it all together I don’t need to
If you don't "need" to maintain the highest score possible every month (e.g. to qualify for something), then a small / temporary score drop has 0 real-world impact.
@@MarkReese it’s just the fact that the rules are being altered without structure what’s the point of credit if they can just do whatever they want to me or you It wasn’t easy going from broke homeless with a 580 to 758 to now 743 It’s a game to them but not me and other folks That’s why I live on half of my income and will never change fixing to dump the credit system
I got a question this is a silly question but curious. btw I would never do this but am curious on how it works. lets say I have a 100K credit limit and I spend all 100k in one day on 1 purchase to make it easy. As soon as it clears (No longer pending probably 1-2 days) I pay it completely off before my statement is generated. Will that effect my credit score? Will it report to credit karma or any other credit monitoring apps? Will it show a credit history?
Nope. Nothing will show at all. The only one that will know you spent it an paid it off is the credit card issuer. As Long as it's a low low utilization when it closes your good. You can max it out all you want. Just make sure its all paid off before it reports.
@@bigcurt011 - Bizarre. Give it a bit longer to see if updates come through by next week. Also check your score via other sources (and note the dates they were updated).
I wanted to drop my score via utilization and I spent like 2K? What I forgot was my new card that I just opened that added 10k to my avaliable credit. My experiment failed when I realized this
Hey Mark, when I check my credit score on credit karma my Equifax score doesn’t show up only my Transuinon, my first credit card was almost a year ago with Discover on Nov 2021, any suggestions on what I should do or could it be that my score is still relatively new? Because my fico, experian do show in other apps, and lastly I recently got a 2nd card with Capital one, sorry it’s a lot 😅
do you have a vid explaining APRs and interest? The reason I ask is because I never pay interest on my cards so I dont know how it all works, but im curious now lol thanks!
