credit score fix?
credit score is usually at 750. dropped 25 points a few weeks ago because my credit card bill was ~70% of my credit limit last month. apparently high credit utilization affects the score. i’m about to finance a car and want to fix this. if i pay off the credit card now will the drop reverse immediately?
It will update when the credit card company reports the new balance to the reporting agency, of course. Typically it happens weekly.
Will 725 v 750 even be a factor? As long as OP stays in the top tier...
Educated guess: It’ll bump rates ~0.5%. (There are tiers above 725 and 750!)
>has credit card >just figured out high utilization affects credit score >asks how/when credit score gets updated >wants to finance a car lord help us all.
This is good for us, not for them
lol
It's going to take several months at least. See if you can raise credit limits on existing cards. Do not open new cards, and make sure they don't run your credit to increase limits. If you have a good payment history most companies would do it easily.
As long as they pay off the balance and then keep to like 10% credit usage for the next month it should rebound fully, doesn't take several months for this case.
This may be unpopular opinion: No please!! Help your future self by staying out of consumer debt. Save, educate yourself in finance and invest.
Don't do it. If your utilization is 70% you cannot affordable to finance a car.
Not necessarily. What if he only has one card and its a low limit card? Easy to hit 70%. OP said he could pay that off anyway so
Unlikely. If op had a beginner card with a 500 limit it would expand rapidly after making payments on time. Lenders are eager to get 10 to 100k in credit out there asap.
725 credit score ???
Call your credit card company and ask for a higher limit. Apparently you can do it every 6 months if you pay your bills on time. No one does this but I did it when my score is around 760 and now it’s 825 after 2 years
Everyone does this, genius 😂
Financing a car without knowing how credit scores work!???? Low utilization for a couple of months and timely payments might bring it back.
Back when I had a 714 score I still was able to get 2.9% financing. Do you know how finance rates work? Also, auto loan credit scores are calculated differently. Your main FICO is not what they use. I’d suggest signing up for an experian account or something to use their calculators. But I ditto, don’t finance anything without understanding how it works.
It will go back up when the new balance is reported, usually a month after the score dropped.