In the last year my credit score has been on an upward trajectory. I finally got a credit card and have been really diligent about paying it off twice a month. I’ve never missed a payment and I’ve never paid less than the full amount. It’s been working wonders! My score has gained points every month since I got my card (up till now I’ve been tracking it with Mint) and the only ‘poor’ rating I have on my report is that I only have ONE credit card. I’m wondering why it would seemingly randomly dip 11 points? I haven’t done any of the things I’m reading that says will cause your score to go down. (Applying for a bunch of cards, missing payments, passing 30% credit usage, etc) The only thing I can think of is I just requested a credit increase, but I thought that should help my score not hurt it? I still haven’t surpassed the recommended 30% usage amount so I don’t think that would be the cause but I’m a little curious. I know the score will fluctuate but an 11 point drop kind of spooked me! So if anyone has any ideas as to why or advice I’d appreciate it!
Thanks for your question and good work building your score! When you applied for a credit limit increase, did the credit card issuer tell you whether or not they were going to do a hard pull of your credit? That may explain why it dropped temporarily. Whether they do a hard pull or not depends on the issuer and how much you are increasing your limit by.
You’re right – in the long term, having that higher limit is a good thing for your score because your usage is lower.
Also, you probably know this already, but you can also track your score on NerdWallet (we have an app) and get credit-building tips there.
Hope that helps and feel free to ask more questions.