My credit score dropped 42 points for a large credit card purchase

A portion of your score is available credit to debt. If you’re credit is checked when you have a higher balance on a credit cad, it will decrease your score.

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Put a new roof on my house while preparing to sell, and put a total of $20K on my card over the course of a month. I did it for the points, and paid the balance off today, but yesterday when I checked, my score had dropped 42 points.

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Wait another month and it will go back where it was.

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You are saying if you make a big purchase on card, to just go pay it off the next day after it is made? That way you get the benefit, but not the ding on score?

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doesn't have to be the next day, for credit purposes you just have to make sure it's before your credit card statement date. The number on your statement is what is reported to the agencies.

For interest purposes, you still won't pay any as long you pay it off before your due date. Note that statement date and due date are two different things.

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You are saying if you make a big purchase on card, to just go pay it off the next day after it is made? That way you get the benefit, but not the ding on score?

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I didn't realize this until much later in life. I've never had a gargantuan credit card balance though, only occasionally large, always paid it off before the due date, and I have an excellent credit score.

I had always thought that as long as I wasn't late on a bill payment, or didn't pay it off in full (and accrued interest), that it didn't have a negative effect on my credit score.

I wouldn't worry about it unless you're getting a new mortgage/loan.

Nothing to worry about. It will revert back at next cycle. Utilization rate is one of the bigger factors in your credit score, so it can be a big mover.

If that card company does a soft pull to increase your credit line, now is the time to ask.

They see you used it and they will want to give you more.

If the statement hits with a 0 balance AND you get a limit boost, your score will jump a little extra.




The trick is utilization. 30% is not the magic number for credit score. 5% is more accurate.

I've farmed my limits to much higher levels than my spending or income dictates by rotating cards every couple of months and requesting soft pull increases every 6.

Why? The system is flawed and it's easy to manipulate. When I made a certain jewelry purchase recently, I saw very little score dip.

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You just didn't pay the balance off before the statement date. As long as your balance goes back to zero you'll be good once the next statement drops

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I hope to do this when I buy a vehicle this summer. Put as much as my buddy (Sales Manager at a dealership) will let me on my credit card for the points, then pay it off a couple of days later when it posts. Pay the rest of the vehicle cash. It would suck to spend that much cash in one transaction and not be able to get any points for it.

Did the same thing with my fiancee's engagement ring. Put it all on my CC and paid the transaction off a couple of days later.

Well, on the plus side, the thing that made it drop will go right back up after you pay it off. No big deal other than you paying a credit card interest rate on 20k for a month.

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