My Credit Score DROPPED 27 Points! (Why I Don’t Care)

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My Credit Score DROPPED 27 Points! (Why I Don’t Care)

Рет қаралды 25,988

Күн бұрын

My credit score just dropped by 27 points! Learn what happened so you can avoid this simple credit score mistake (and how to increase your credit score if it happens to you)! Click “Show More” to see Ad Disclosure, links, and additional information below.
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I logged into my Credit Karma account and saw that my credit score decreased in a big way! Previously it was 808, and now at 781, that represented a drop of 27 points! In the video I explain what happened (hint: it had to do with my credit utilization, the second largest factor of your credit score), and what I plan to do in order to increase my credit score back to where it was originally.
Your credit score can be broken down into 5 main credit factors, each of which has a different weight on your credit score. I like to remember the factors via the acronym: PHURLEMINA.
PH = Payment History (35% of your credit score): This represents how many on-time payments you’ve made on your credit account. The more, the better.
UR = Utilization Ratio (30% of your credit score): This represents how much of your credit limit you’re using, both on individual credit cards and across all credit card accounts. At any moment in time, you can calculate your utilization ratio by adding up your credit balances and dividing that total by the sum of your credit lines. In other words: Current Balance ÷ Credit Limit. Multiply the result by 100 to put in into percentage form.
LE = Length of Credit History (15% of your credit score): This is also called Average Length of Credit History, taking into account your oldest credit card, newest credit card, and any others in between.
MI = Mix of Accounts (10% of your credit score): This represents the different types of financial products on your credit report, like credit cards, auto loans, installment loans, etc. Generally, the credit bureaus like to see you’re financially responsible with different types of products.
NA = New Accounts (10% of your credit score): This includes any new credit card accounts you’ve opened and credit inquiries (i.e. hard inquiries / hard pulls on your credit report).
A lot of changes to your credit score are temporary and are easy to fix. So, if you see a credit score drop, learn which factors were involved, then focus on those areas to make your rebound happen a lot faster!
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Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Mark Reese is not a financial advisor.
#creditcards #creditscore #creditcards101

Пікірлер: 247

@MarkReese Жыл бұрын

💡 *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 Жыл бұрын

How did it drop even more ??

@MarkReese Жыл бұрын

@@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.

@tayetiwoni Жыл бұрын

@@MarkReese ahhh I see. After this month your score should be restored correct ?

@MarkReese Жыл бұрын

@@tayetiwoni - Normally, yes 👍 However, I just had another card get reported with an 86% utilization, so that will likely cause another massive drop.

@tayetiwoni Жыл бұрын

@@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

@SpencerJohnsonOfficial Жыл бұрын

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 Жыл бұрын

Definitely - make those early payments, but ensure you have some balance due too. Don't overpay or pay it all.

@MarkReese Жыл бұрын

You got that right! 👊

@SpencerJohnsonOfficial Жыл бұрын

@@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!

@osikanii Жыл бұрын

@@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.

@SpencerJohnsonOfficial Жыл бұрын

@@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!

@todd7148 Жыл бұрын

Mine dropped 16 points on Experian because I wasnt paying attention and accidentally paid all my cards down to zero.

@MarkReese Жыл бұрын

Welcome to the crazy world of credit scores 😬🎢

@modest5982 Ай бұрын

Insane that you get punished for not having credit utilization at the end of the month.

@GenX_US_Marine 8 ай бұрын

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.

@MarkReese 8 ай бұрын

Which app did you use to check your score?

@pamgordon5051 Жыл бұрын

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.

@MarkReese Жыл бұрын

Glad it was helpful, Pam!

@roycreditmastrefix.comhelp7006 Жыл бұрын

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.

@thegundoctor Жыл бұрын

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.

@yuuki-yuuki Жыл бұрын

Second this. VantageScore is not much useful. FICO is the one to check.

@MarkReese Жыл бұрын

The difference can be quite large 😁👍

@TheCreditFrog Жыл бұрын

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 🤣

@TheCreditFrog Жыл бұрын

@@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 Жыл бұрын

Yep, utilization is a major score driver!

@osikanii Жыл бұрын

@@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.

@MarkReese Жыл бұрын

@@osikanii - Yep, great way to avoid large purchases from appearing on your personal credit report! 😃👍

@stellangueha2658 Жыл бұрын

I don’t know why my fico score dropped of 8 points and my credit karma didn’t change?

@briansimpson5531 Жыл бұрын

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.

@MarkReese Жыл бұрын

Fortunately, going from an 820 to a 790 on a temporary basis has almost no real-world significance. Well done on building a strong score 👍

@roycreditmastrefix.comhelp7006 Жыл бұрын

@lessonstiff7425 Жыл бұрын

Wow 8k…. What do you do

@PointsPrecision Жыл бұрын

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.

@MarkReese Жыл бұрын

Have you experienced that personally? Or where did you hear that?

@michaelshay6264 Жыл бұрын

@@MarkReese chase has updated mine the balance has to be paid to 0 for them to do it

@johnnymichael1804 Жыл бұрын

@@MarkReese you're the credit expert.............

@MarkReese Жыл бұрын

@@michaelshay6264 - And your credit report showed the update shortly after?

@MarkReese Жыл бұрын

@@johnnymichael1804 - Doesn't mean I know everything.

@ammooth1592 Жыл бұрын

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 🤝😊

@MarkReese Жыл бұрын

Yep! It's crazy how much utilization can cause your score to change 😬

@Holyface145 Жыл бұрын

Your my favorite you’re easy to understand and so knowledgeable

@MarkReese Жыл бұрын

I appreciate hearing that, Therese!

@Holyface145 Жыл бұрын

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

@MarkReese Жыл бұрын

@@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.

@ammooth1592 Жыл бұрын

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 💯

@MarkReese Жыл бұрын

Great to only have 1 inquiry 💯

@andyeaker2324 21 күн бұрын

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!!!

@MarkReese 20 күн бұрын

Crazy!

@tomw485 Жыл бұрын

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.

@MarkReese Жыл бұрын

Welcome to the roller coaster ride 🤘

@bradhampton6457 Жыл бұрын

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.

@MarkReese Жыл бұрын

Agreed 👍 See the pinned post below the video for how my FICO score changed.

@roycreditmastrefix.comhelp7006 Жыл бұрын

@qahtanalqaysi5116 Жыл бұрын

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.

@MarkReese Жыл бұрын

Good strategy Qahtan 💯

@DJSliick Жыл бұрын

Damn they charged you the AF Then Closed the Statement. Didn't even give you time to pay it before it reported? Thats Dirty

@MarkReese Жыл бұрын

Haha didn't matter to me anyway; I don't worry about utilization any longer.

@cjacquet00 Жыл бұрын

you can also call each card lender and have them adjust your closing dates

@MarkReese Жыл бұрын

Yep 👍

@911eVoX Жыл бұрын

Omg I was stressing when I saw your score drop that much!

@MarkReese Жыл бұрын

😬

@SJRay408 Жыл бұрын

Thank you so much for such a proper breakdown. This video answered a lot of my questions.

@MarkReese Жыл бұрын

💯👍

@theblerdshow Жыл бұрын

My score dropped by 29 on the 16th and went up 30 on the 18th. Not sure why

@deveng7766 Жыл бұрын

Mines did something weird like that too recently outta no where the credit system like has a brain of its own

@MarkReese Жыл бұрын

Credit scores often remind me of a roller coaster 😂🎢💳

@kyesims2426 8 ай бұрын

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!!!

@MarkReese 8 ай бұрын

Dang that's frustrating. Which app are you using to check your score?

@maxxlaw4081 Жыл бұрын

The same-thing happen to me!

@MarkReese Жыл бұрын

Utilization can cause big score fluctuations 😁

@warrenmikes Жыл бұрын

Great Information...thanks Mark!!

@MarkReese Жыл бұрын

You bet! 👊

@darylpeek8134 Жыл бұрын

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?

@MarkReese Жыл бұрын

Strange. Not sure why that occurred.

@michaeldowning7094 Жыл бұрын

This guy doesn't need advice about fico vs ck lol nor does he need credit repair advice

@MarkReese Жыл бұрын

Correct 👍

@krystalsmith5218 9 ай бұрын

Mine dropped from 797 to 775 a week ago nothing changed as far as my credit but my morgage gone down a tiny bit.

@MarkReese 9 ай бұрын

Welcome to the crazy world of credit scores!

@acetheking3136 Ай бұрын

Next time charge The $2,200 on The $20,000 credit card 😂

@DanielMartinez-ci1mn Жыл бұрын

The king 🤴 on this tema. Tanks from Mexique ✌🏻

@MarkReese Жыл бұрын

Gracias Daniel! Espero q te haya sido útil 👊🇲🇽

@SamSung-jv3jm Жыл бұрын

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.

@MarkReese Жыл бұрын

Yep, score changes are normal 👍

@billywatts889 Жыл бұрын

Love your videos Mark keep up the good work 👏 and

@MarkReese Жыл бұрын

Thank you Billy!

@AlyviaGranillo Жыл бұрын

Very informative thanks for sharing!

@MarkReese Жыл бұрын

You're welcome!

@justinstansberry7555 Жыл бұрын

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.

@MarkReese Жыл бұрын

Nothing else changed along with that?

@sjg6158 Жыл бұрын

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.

@MarkReese Жыл бұрын

Nope, I don't use too many cards at a time, so it's not that difficult to manage.

@jimmyjames6492 Жыл бұрын

Thanks for the info + video!

@MarkReese Жыл бұрын

You're welcome!

@Albert-777 Ай бұрын

After paying off a auto loan,why does a credit score drop?Is it temporary?

@MarkReese Ай бұрын

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/

@reddwitdreadz Жыл бұрын

OMG a quarter of million!!!!!

@MarkReese Жыл бұрын

😬💳

@davidmilhouscarter8198 Жыл бұрын

3:08 My credit utilization ratio is zero divided by zero aka undefined.

@MarkReese Жыл бұрын

💯

@jun.oshima Жыл бұрын

Number of accounts(48😨) is crazy Mark.

@Vegas.777 Жыл бұрын

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.

@MarkReese Жыл бұрын

Yep that makes sense, too 👍

@Sebastianx007 Жыл бұрын

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 Жыл бұрын

Welcome to the wild world of credit scores 😬

@CesarJoel Жыл бұрын

Great information! Thanks!

@MarkReese Жыл бұрын

Sure thing!

@UntakenHandle Жыл бұрын

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 😓

@MarkReese Жыл бұрын

Give it time to update ✌

@DL-1 Жыл бұрын

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.

@MarkReese Жыл бұрын

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: kzfaq.info/get/bejne/a7t-bNh6s7OVlmg.html

@joerodriguez7334 Жыл бұрын

hey mark think you meant 10% is 2k and 20% is 4k @ 11:45 .

@MarkReese Жыл бұрын

Yep good catch, thanks Joe! 😄

@jonoxthomascito6516 Жыл бұрын

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

@MarkReese Жыл бұрын

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.

@jonoxthomascito6516 Жыл бұрын

@@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

@MarkReese Жыл бұрын

@@jonoxthomascito6516 - Smart money moves right there living on half of what you bring in. Well done 💯

@dontask8979 Жыл бұрын

$450 Annual fee? 🤪 They can keep it For debt, there is no such thing as a early payment.

@MarkReese Жыл бұрын

😄✌

@nopenope6012 2 ай бұрын

so my utilization went from 5% to 10% and it dropped 50 pts... is that normal? went from a 803 -> 753....

@MarkReese 2 ай бұрын

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.

@8ballMarcucilli Жыл бұрын

When a CC is paid of to a zero balance every month customers shouldn’t have to wait 30 days or more for the score to rebound. Great video sir!

@MarkReese Жыл бұрын

I wish that weren't the case, too ✌

@roycreditmastrefix.comhelp7006 Жыл бұрын

@gw6496 Жыл бұрын

Great information 👍🏽 👌🏾

@MarkReese Жыл бұрын

Glad it was helpful!

@gw6496 Жыл бұрын

@Mark Reese // Credit & Finance Yes keep up good job👍🏽👍🏽

@ItsReezun Жыл бұрын

For the next reporting cycle can we see the update to your credit score?

@MarkReese Жыл бұрын

Maybe. That wouldn't be enough content to produce a full video, so perhaps a community post.

@latachia_2981 Жыл бұрын

@@MarkReese Maybe you could just do it as an add on to another video.....I would also like to see it too!

@kristentapscott5252 Жыл бұрын

How do you get a credit limit of $200K?

@MarkReese Жыл бұрын

By getting a variety of cards over a number of years 👍

@paulstein916 Жыл бұрын

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?

@michaelshay6264 Жыл бұрын

think i heard one bank reports the balance on the last day of the month most reports on statement closing date

@MarkReese Жыл бұрын

Hey Paul - did that first card with a $3,800 balance eventually get updated? Were any of those cards from U.S. Bank?

@paulstein916 Жыл бұрын

@@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.

@MarkReese Жыл бұрын

@@paulstein916 - Wow that's frustrating. Unfortunately, I don't have a way to correct that. I'd just call them directly.

@-_-_-_-_-_-_-_-_-_-_-_-... Жыл бұрын

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!

@MarkReese Жыл бұрын

Not yet, but I've got that topic on my list for future videos! 🎬

@-_-_-_-_-_-_-_-_-_-_-_-... Жыл бұрын

@@MarkReese can’t wait!!! Thanks!

@deborahanderson4211 Жыл бұрын

My Equifax score dropped 2 points from 799 to 797 by me getting a apple credit card

@MarkReese Жыл бұрын

Great that it was small drop 👍 Has it rebounded fully?

@deborahanderson4211 Жыл бұрын

Hi Mark yes it has!

@candi-qy6bk 10 ай бұрын

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?

@MarkReese 10 ай бұрын

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.

@tiffandvick1556 Жыл бұрын

i also had a 13 point drop but i only have one card and credit utilization is 12% 😭😭

@MarkReese Жыл бұрын

And now you know how to recover those points whenever you like! 😃👍

@elizabethcarnahan8676 Жыл бұрын

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?

@MarkReese Жыл бұрын

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.

@blakinsideandout Жыл бұрын

My score went up 75 points last month then down 24 this month

@MarkReese Жыл бұрын

Welcome to the credit card roller coaster 🎢😄

@2010Mrnasty Жыл бұрын

I just applied for a ne credit card , I have no lates or current inquires from 2021. I lost 56 points is this normal ?

@MarkReese Жыл бұрын

Hi Aisha - (a) Where did you check your score? (b) How long is your credit history? (c) What was your score prior to the drop?

@masadate86 Жыл бұрын

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) 😅

@MarkReese Жыл бұрын

Welcome to the (temporary) drop club 😄

@masadate86 Жыл бұрын

@@MarkReese 😂

@suheid15 Жыл бұрын

Mine dropped about the same, just because I got a new phone and I'm paying it over time with Samsung financing 😫 currently 783 lost 18 points

@MarkReese Жыл бұрын

Yep that'll do it 😬

@Humbletrader08 Жыл бұрын

same drop 21 points after financing phone

@blavk650 Жыл бұрын

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.

@MarkReese Жыл бұрын

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.

@blavk650 Жыл бұрын

@@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.

@MarkReese Жыл бұрын

@@blavk650 - well, done on getting the journey started! Here's a link to another video you may find helpful: kzfaq.info/get/bejne/pLN6qtCWvNbYhoU.html

@blavk650 Жыл бұрын

@@MarkReese appreciate it !

@chikaadiele3155 11 ай бұрын

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?

@MarkReese 11 ай бұрын

Yes.

@NCKyle1980 Жыл бұрын

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.

@nelsonpineda8047 Жыл бұрын

Dude I almost had a heart attack when I saw that 57% credit utilization 😱😱😱

@MarkReese Жыл бұрын

Indeed! Utilization can make a big dent in your score if it goes too high 😁

@thehourshow2851 8 ай бұрын

what crazy i was in the 740 range paid both my cards on time to 0 balance dropped 28 points im still floored

@shaunsmith8780 Жыл бұрын

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?

@MarkReese Жыл бұрын

There's no need to spend money if you don't need to. A $0 balance will still count as an on-time payment.

@shaunsmith8780 Жыл бұрын

@@MarkReese even if I'm trying to build credit? Right now, I'm unscoreable.

@MarkReese Жыл бұрын

@@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.

@bigcurt011 Жыл бұрын

Mine dropped 69 pts and shows no reason why im puzzled

@MarkReese Жыл бұрын

Which program are you using to view your score?

@bigcurt011 Жыл бұрын

@@MarkReese credit karma

@MarkReese Жыл бұрын

@@bigcurt011 - Tap on one of the 2 scores. Tap on 'See what changed.'

@bigcurt011 Жыл бұрын

@Mark Reese // Credit & Finance I did and it's says no changes

@MarkReese Жыл бұрын

@@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).

@PatrickDKing Жыл бұрын

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. :)

@MarkReese Жыл бұрын

At least you're in control!

@PatrickDKing Жыл бұрын

@@MarkReese lol. control is merely an illusion...

@shaunsmith8780 Жыл бұрын

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?

@MarkReese Жыл бұрын

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).

@shaunsmith8780 Жыл бұрын

@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.

@MarkReese Жыл бұрын

@@shaunsmith8780 - Great that you're doing it intelligently! 👊💯 Congrats on getting the journey started.

@shaunsmith8780 Жыл бұрын

@MarkReese does it really take 6 months before you can have a credit score?

@MarkReese Жыл бұрын

@@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/

@gabrielmendez2197 Жыл бұрын

I do everything you say and my credit score dropped 42 points or so today, not sure why!! Any help?

@MarkReese Жыл бұрын

Which program are you using to check your score?

@gabrielmendez2197 Жыл бұрын

Vantage score thru chase

@MarkReese Жыл бұрын

@@gabrielmendez2197 - Is there anywhere on the dashboard that shows you the reason(s) for the drop?

@gabrielmendez2197 Жыл бұрын

@@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?

@gabrielmendez2197 Жыл бұрын

Isnt that a good thing*

@MarkReese Жыл бұрын

What was the biggest credit score drop you experienced? What caused it? 😯

@MetroJet2000 Жыл бұрын

35. Because they felt like it (didn’t provide a reason, no noticeable changes in any factor they consider)

@newfinanciallife993 Жыл бұрын

81 point drop 2 yrs ago

@CarlozN Жыл бұрын

37 getting a Chase Freedom Flex. 😅

@michaeldowning7094 Жыл бұрын

-41 due to Car financing

@eugenevelasquez2637 Жыл бұрын

-70, bought a house

@davidjames3405 6 ай бұрын

credit scores are just another money making scam!

@MarkReese 6 ай бұрын

😬

@eyeyamjstn628 Жыл бұрын

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

@MarkReese Жыл бұрын

Why did you want to drop your score?

@eyeyamjstn628 Жыл бұрын

@@MarkReese just because why not, I’m a low spender and I wanted to see what a ‘big’ purchase will do to my score.

@burningguitars790 Жыл бұрын

ANNUAL FEE OF $450 IS CRAZY. STOP PAYING THAT YOUR ROBBING YOURSELF BRO

@MarkReese Жыл бұрын

I get more value than the cost, so I don't mind paying it.

@robirvin9819 Жыл бұрын

Let me produce this long video on why I don't care about something!

@MarkReese Жыл бұрын

Welcome to KZfaq 🎬

@brandonpolizzi3103 Жыл бұрын

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?

@DJSliick Жыл бұрын

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.

@MarkReese Жыл бұрын

No, there will be no effect on your credit score as long as the balance doesn't get reported (which only occurs 1x per month).

@nelsonpineda8047 Жыл бұрын

57% percent are you out of your mind 😱😱😱

@MarkReese Жыл бұрын

Nah...I no longer worry about utilization ✌️

@MarkReese Жыл бұрын

@@CheekyBird790 - Perhaps a future experiment 😂👊

@mitchell.9632 Жыл бұрын

@@MarkReese See if they are smart enough to give a credit limit increase if you go that far and pay it off.

@anirudhchaganti5128 Жыл бұрын

48 accounts. 🎉❤

@MarkReese Жыл бұрын

😎👊💳

@Jordan-sq1oo Жыл бұрын

Liked it

@MarkReese Жыл бұрын

Thank you!

@SOXGATORS Жыл бұрын

👍🏻

@MarkReese Жыл бұрын

👊

@ulisesg9284 Жыл бұрын

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 😅

@MarkReese Жыл бұрын

Not sure what's going on with Credit Karma. I also saw Equifax disappear from CK some time ago. I'm seeing it recently.