Had the best credit week ever last month - or maybe the worst? Tough call.

I paid off my last $500 on a store card and my VantageScore jumped 30 points, but then I opened a new card for the sign-up bonus and it dropped 15 points. So did I win or lose here? Who else is stuck in this weird cycle of fixing one thing and breaking another?

3 comments

3 Comments

phoenix57312d ago

I read somewhere that the credit scoring models actually expect minor drops from new accounts. It's like they build that into the system on purpose. So the 15 point hit is practically meaningless in the long run.

kai_webb9112d ago

Paid off two cards last year and watched my score hit 720 for the first time. Then I applied for a travel rewards card to get some free flights and it dropped 18 points. I was so mad. But what worked for me was just waiting it out. After about 3 months of paying everything on time, my score went up even higher than before. The dip from a new card is temporary, but paying off debt sticks around. So you won for sure, just give it a little time to even out.

riverh4912d ago

Yeah the whole "apply now and lose points" thing always had me thinking it wasn't worth it, but hearing how it worked out for you @kai_webb91 kinda flips that script for me. I used to think any drop was permanent damage but you're right, the debt payoff is the real long term win. Makes me less scared to actually use my credit for stuff I want instead of just hoarding it.