I am confused, I took out a secured credit card and paid off my debt, however, my credit score is tanking instead of rising.

What am I doing wrong? I only use 20-30% of my credit card limit and pay it off monthly.  Any suggestions would be greatly appreciated! Thanks

Wen Dee

Original Post

I would guess that there is something else going on other than the credit card. Have you checked your credit report, not just the score? Have there been some inquiries? Did you make a large purchase like a vehicle? Maybe the debt you paid off has not yet reported it to the credit companies? I would do a thorough check to be sure that no one else is using your info, or if there is an error. 

 

Wen Dee posted:

I am confused, I took out a secured credit card and paid off my debt, however, my credit score is tanking instead of rising.

What am I doing wrong? I only use 20-30% of my credit card limit and pay it off monthly.  Any suggestions would be greatly appreciated! Thanks

 

 I believe you are doing it right but there must be something wrong. Just focus on minimizing your credit utilization to a 10% instead of 30% for a few months and avoid closing any open credit cards. I have a credit score of 785 and only two credit cards but it took sometime before I was able to achieve this. 

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