Why is my credit score dropping drastically when I'm making payments that are more than minimum on time?

Answer 1

You've made a big mistake like I did 3 years ago. I've paid all my bills ''on time'' and ''in full'' for 18 months. But my credit score drops more than 50 points. WHY?? After I studied for 3 years on credit. Let me tell you some tips...... 1. pay your bill on time ( cause one late payment could drop your credit score 30-50 points 2. you need to keep your balance under 30% of your credit limit.( trust me, that was the mistake I made ) and your credit score will definitely drop if your balance higher than 50% of your credit limit. So you do not want your credit card show ''maxing out'' on your credit report. And if you want to increase your credit score faster, its better to keep your balance between 10%-20% but you have to keep eye on all your revolving accounts ( car loans & mortgages are a little different ) 3. Dont apply for too much new accounts with a short time 4. If you have a credit acct with good history but you dont use it anymore. just make sure DO NOT close that acct. 5. Dont ask your creditor to lower your credit limits. 6. pay down your debt asap. Anyway, I hope those info will help you out. but remember...sometime we just cant beat the credit system. For example, one time my America Express balance increase from $0 - $116 and my credit limit is $8200. but guess what? my score drop 2 points. I know its not much. but how can you explain that? I have no any late payment. all my accounts balance are below 30% and plus balance $116 is only 0.02% of my credit limit. but basic follow my info, your credit score will definitely increase. It takes time....Good luck my friend!