Hopefully everyone is having a good easter today. So here's my question of the day.
How are credit drops/increases determined. I understand scores drop when credit is used and increases as it's paid off.
BUT does dropping 10 points sound accurate on a 500 purchase? I was thinking at most 3-4 points...at most
@Timmah1979 I think it’s more about credit utilization or debt to credit ratio than the amount itself. If you have 5,000 available credit and spend 500, and I have 10,000 available credit and spend 500, your credit would probably take a bigger hit than mine assuming all other things are equal.
@Timmah1979 frankly, none of us mere mortals can’t make sense of it. I find my credit usually bounces around in a 12 point range, and that’s being pretty darn consistent from month to month. Don’t take a 10 point drop too hard if you are keeping on track with payments etc.