Credit Score dropped 30 points because they choose the day after I used my credit card to report credit utilization?

Submitted by rouge171 t3_10q5o07 in personalfinance

Is this normal?

I've had a credit card for about 3 months. It's a $500 limit. I pay it in FULL every paycheck I get (every 2 weeks). The credit card company decided to report my credit utilization based on 3 days before I paid it off and it dropped my credit score by 30 points because it says my credit utilization is like 60% or something.

Is this normal? The current balance owed is completely $0 and yet my credit score is still down 30 points.

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Mashtatoes t1_j6nyt2o wrote

They can do that, sure. If you’re not taking out a big loan in the next 60 days, though, it’ll (very likely) have zero impact on your life.

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kdieick t1_j6nyxna wrote

Yes, credit utilization is how much of your credit you are using. If you bought something you haven't paid for yet, then you're utilizing your credit. They don't only report it on your billing date or after you pay it off. Someone maxing out their credit card is seen as a higher risk for non-payment.

If you can, use less of your limit until you can increase your limit.

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TeslaSaganTysonNye t1_j6nyyos wrote

Not something to worry too much about. Utilization has no memory so as long as you pay it off before any interest accrues you're fine. It will take a little while to recover but it will be as if it never happened.

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DarmokTheNinja t1_j6nz690 wrote

Don't worry about the number and just keep paying the bill.

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emptyhellebore t1_j6nzahe wrote

My credit score can fluctuate depending upon my credit card balance, too. It will bounce back up if your balance is lower next month. It isn't a big deal.

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GaylrdFocker t1_j6o5vap wrote

They didn't just decide it, they report your balance on probably the same day every month, slight changes with some holidays possibly. Typically it's your statement balance, did you pay off your card before the statement posted?

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rouge171 OP t1_j6oepdl wrote

Replying to GaylrdFocker (#1,673,460)

I pay it off every two weeks when I get paid. I guess I need to game the system to make it look like I don't use my credit card by waiting to pay it off until the night before they report?

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GaylrdFocker t1_j6p17be wrote

Replying to rouge171 (#1,676,448)

Yep, every 2 weeks means you are going to be before the statement some months and after the statement some months with one of the payments. Yes, find out when your statement posts and pay it down before that day.

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