Two important things have happened since my credit score went up back in July. My car loan was reported and credit card utilization went up on Capital One card.
I have a 5-figure car loan, which is reported as an installment on my credit report. Initially, any loan that significant will cause Equifax and TransUnion scores to go down. As I make payments on it, over-time my scores should recover/increase.
My capital one credit card utilization went up to 65%. It’s recommended to keep your utilization at 30%. I went over the limit because I have a habit of misplacing my main debit cards and I don’t keep cash on me. Going forward I plan to use that card less and keep all my cards below 30%. Below you’ll see how heavy credit utilization can affect your credit score.
My Equifax score went down by a total of 65 points. My car loan caused me to lose 30 points. My credit card utilization caused me to lose 35 points.
My TransUnion score went down 60 points. My car loan caused me to lose 25 points and my credit card utilization caused me to lose 35 points.
My FICO Score 8 score went up by 41 points from July. FICO scores are typically affected by a series of mispayments. So my car loan and credit card utilization does not affect this score as negatively as Equifax and TransUnion.
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