TIL my credit utilization ratio was wrecking my score for months

I checked my credit score last week and saw it dropped 40 points from 720 to 680. Turns out I had a $2,800 balance on a card with a $3,000 limit and that made my utilization hit 93%. I always thought paying the minimum was enough so I never paid attention to that number. I paid the balance down to $500 right away and my score jumped back up 25 points in like 10 days. Has anyone else had their score tank just because of utilization even when you pay on time?

2 comments

2 Comments

the_kai17d ago

lol yeah it's like how phone companies hide the real price behind a bunch of fees and "free" phones. everything's designed to make you miss the actual important part until it's too late.

laurar3817d ago

Oh man, the credit utilization trap is so real. Paying the minimum on time is great and all but that ratio is the sneaky part that gets you every time. It's like the system is designed to trick you into thinking you're doing everything right then bam, 40 points gone. 93% is brutal though, that's basically maxed out in their eyes. At least yours bounced back quick, but still, what a ridiculous rollercoaster for just using your card like normal.