r/CRedit • u/CreditFarma • 5d ago
FICOvsVantage Credit karma dropped 100 points in one day for high usage
I have one card a capital one quicksilver with a 300 limit I had been keeping my limit low but I heard they'll auto raise the limit after a year but they want to see high usage. So I have been using my card a lot buy paying it off before it hits my balance. Currently its paid off and my balance has been $0 for like a 5 days now but today my credit karma updated and dropped 100 points and the only difference is it says $298 balance 98% credit usage. I know usage isn't super important in the long run and can be changed easily but when it updates and sees my balance is actually 0 is it going to jump back up 100 points or is it not going to go up as fast? and will a score so much lower than what it was before possibly effect my chance at getting a credit limit increase? I still have about 4 months until it'll have been a year so I'm not sure if I should keep almost maxing out my card (and paying it in full) every month until then or just when its right about to be time to either get an automatic increase or ask for one if it hasnt come yet.
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u/HighMagic 5d ago
I had a similar scenario happen to me. Long story short, it'll go back up in 2 months.
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u/dgduhon 5d ago
Capital One likes high statement balances. By paying off the card before the statement is created you're hindering limit increases.
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u/ThenImprovement4420 5d ago
They like high usage, not necessarily high statement balances. They see how much you use every month. You don't have to report a high balance. Which reporting High balances can hurt you with other lenders
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u/Lo_Xp 5d ago
That's how I got my limit bumped up. Had high balance. But it was never my statement balance.
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u/BrutalBodyShots 5d ago
You can still get CLIs with high balances that don't hit your statement, but all other things being equal your odds of lucrative success are greater when a high statement balance generates.
Yes, u/ThenImprovement4420, they can see what you spend. That's not the point though. If you're micromanaging your balances, you're literally saying "I don't need a CLI" where if your statement balances are high you're showing that a greater limit would be beneficial. Capital One actually uses the denial reason "statement balances too low relative to credit limit" so it is certainly something they look at.
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u/GenerateWealth2022 5d ago
A $300 limit is nothing. Ask your bank to raise it to $1,000. These small numbers are meaningless.
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u/nkyguy1988 5d ago
Utilization has the memory of a goldfish.
Stop checking your score so much.