Credit Score Dropped

Forum|Forum|5 years ago
April 16, 2020
1 reply
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I have a question maybe someone can assist me with. I have had a colleague of mine's credit score drop to almost 50 points since early March. I will say this , they have had to use card more than they would like to and the utilization of their card has gone up. I DO know that using the card does decrease credit score. Correct? Just making sure that what the decrease is. Is it the utilization or the downing economy?

Any other suggestions?

Thanks!

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Annette [last name removed]

Not A Product Question

Opus 17

Employee

The score won't be directly affected because the economy is slowing down, FICO doesn't know whether or not your friend lost their job or had a decrease in income. They just know (apparently) that he or she is suddenly using a lot more of their available credit. The credit score is supposed to be a prediction of how likely the person will be able to pay a new future loan, so a sudden increase in debt can be a red flag. Someone who suddenly maxes out their credit cards and then applies for more credit may be a higher risk. If he doesn't want to apply for new credit, just ignore it and the score will go back up as the bills get paid.