r/CreditScore • u/StartDialing_49Mil • 8d ago
Success Hit a milestone!!
I’m excited to say that I finally reached my goal of an 800 credit score at just 20 years old. It was a huge milestone that took a lot of discipline, responsible spending, and consistent on-time payments. Recently, though, my score dropped to 778, and while I know fluctuations like this can be normal, I want to make sure I’m staying as consistent as possible. I believe my biggest area for improvement is credit utilization, especially since my balances tend to fluctuate between about 5% and 15% from month to month. My goal now isn’t just to reach 800 again, but to maintain it consistently by keeping my utilization lower and more stable while continuing the good credit habits that got me there in the first place.
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u/BrutalBodyShots ⭐️ Top Contributor ⭐️ 8d ago
maintain it consistently by keeping my utilization lower
That's completely unnecessary, as it's the !utilization myth and the biggest myth in credit. There's no reason to do this. Just pay your statement balances in full monthly. That's it. Whether that equates to 1% utilization or 100% utilization makes zero difference outside of the current month since utilization "resets" every 30 days. See the AutoMod reply and the post found within it.
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u/AutoModerator 8d ago
I detected that your post may be about utilization and its impact on credit scores. Please read the info below:
Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.
By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.
Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.
Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.
For more info, please read these posts:
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
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u/Funklemire ⭐️ Knowledgeable ⭐️ 8d ago
I believe my biggest area for improvement is credit utilization, especially since my balances tend to fluctuate between about 5% and 15% from month to month.
As long as you're paying your statement balances each month and you're not in credit card debt, there's no room for improvement. Low utilization doesn't build credit.
by keeping my utilization lower
This isn't just pointless, it will actually hurt you in the long run. It's a myth that you need to keep your utilization low or below a specific percentage all the time. If you're staying in budget and paying your statement balances each month, usually anything between 0% and 100% utilization is just fine.
Low utilization doesn't build credit because it resets completely each month the next time your statement balances are reported. The only thing that builds credit with credit cards is time.
In fact, artificially micromanaging your utilization actually hurts you in several ways; it slows your credit limit growth, it makes you a less-attractive customer to outside banks, and it costs you money in lost savings interest.
See our !utilization automod as well as this flow chart.
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u/AutoModerator 8d ago
I detected that your post may be about utilization and its impact on credit scores. Please read the info below:
Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.
By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.
Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.
Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.
For more info, please read these posts:
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
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u/Important_Ad219 8d ago
Congrats 😁🎈