Question : My credit card balance is over 50%. How long will it take my credit score to go back up?
Hi. I recently just got my first credit card ever and used it to make a $1600 purchase. The credit limit is $3000, so obviously I'm over 50% of the balance, and I just learned that's bad for credit scores. I expect to be able to pay off the purchase in the next two or three months. Will my credit score go back up immediately after I get the balance on my card down, or will it take a while? Thanks.
- asked by Casey
All Answers:
Answer #1
It will take awhile, it isn't as much about howmuch you have on your card, but the fact that youmake your monthly payment on time, and the timeyou have the card. Your credit probably took 1point ding, I wouldn't worry about it, justcontinue to make minimums or much higher eachmonth and then when you get it to 0 let it sitthere, you need to build up history on the creditcard. Good Luck
- answered by Hawaiisweetie
Answer #2
Congrats on getting your first card and, moreimportantly, on caring enough to ask about theimpact of a $1600 purchase.Are you consideringapplying for credit any time soon?If not, don'tworry about the impact to your score. In fact,consider, don't worry, about the amount ofinterest you'll pay for delaying full payment ofthe $1600 purchase. That is, you indicated it willtake you 2-3 months to pay it off. Unfortunately,the hit is much more than the one point suggestedby a different poster. Thirty (30%) percent ofyour FICO comes from "amounts owed."Not aproblem...unless you're considering new credit. Ifso, hold off. Get a credit history with on-timemonthly payments. Show responsibility with thecard you have. Don't laugh..but really nurture it.Develop a long-term credit relationship and youwill benefit. Hope this helps, Best, Mike
- answered by paynemdp
Answer #3
Once your percent gets to below 30% of youravailable credit, you will see improvements. Theylower the percentage, the higher your potentialscore is.
- answered by Mariposa
| 
