Forums
Hi all,
I've just had a 40 point drop in my FICO score - from 780 to 740. I believe it is because of my credit utilization ratio, but that is because my limits on my two cards are very low. One is $700 and the other is $800 respectively.
I have 2 cards and a car loan. All of these are in good order. These cards are 3 years old, and the loan is 4 years old.
One thing i noticed on my latest report is: "Ratio of your revolving balances to your credit limits : 35%" and "You've made heavy use of your available revolving credit."
So, what do you think has made the score drop?
Drop in score
Hi Rio,
Credit utilization that is the % of credit used in comparison to available credit counts for 30% of your credit score. If your credit utilization rate is higher, it can hurt your score. It is always better to keep the credit utilization rate lower than 30%. So, I think you should try bringing down the balance on your cards.
Your high credit utilization ratio is the only thing that's hurting your credit score.
Thanks,
Aaron
credit score
Hi Rio,
I think your score has dropped because of the high utilization rate. You should try to pay down the balance on these two cards as early as possible, and you can also request your creditors to increase the credit limit.
Thanks,
Angela