My Credit Karma score dropped after paying off big balance

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Dylan1982
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My Credit Karma score dropped after paying off big balance

Postby Dylan1982 » Fri May 10, 2013 1:16 am

We all know that Credit Karma isn't a real score, but in April my score was a 700 and I just logged on to update it and it dropped -25 pts down to a 675.


The only thing that I can think of is b/c I used my Freedom card and was at a 58% utilization. I use the Freedom card for EVERYTHING (gotta love the rewards) but also at the end of the each billing cycle the card gets PAID IN FULL!!!!!


My billing cycle is from 3/21/2013 - 4/20/2013. I racked up $2,900 and my CL is $5,000. On 5/4/2013 I paid my balance IN FULL already. My payment isn't due until 5/17/2013.


What am I doing wrong? How do I keep this from happening again? I would assume once the CC companies report, my score will jump back up b/c I paid off such a big amount?

How do you guys go about paying your cards? Do you pay them before CC companies report to the bureaus? How early do you pay your card in full?


Man I wish Chase would give me a CLI increase already, my acct is still new though. Opened it I think in February..
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)


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Snowman
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Postby Snowman » Fri May 10, 2013 2:46 am

What I typically do is most of them I pay my cards off about 2-3 days before the statement cuts (on my AMEX, BOFA, and Citi cards, the statement cut off date changes monthly.) And then when I'm apping for a card or two, usually I PIF all my card except one, and leave a small balance (I left a 25.00 balance on Cash Rewards card, got instantly approved for the Freedom, PIF my Cash Rewards card on Monday.) Other then that, I always PIF a few days before the statement date but after the payment due date (cause If I have no balance from last month, I don't want my payment being applied for a 0 balance..lol.)

Just PIF every month, and the month you want a new card leave a small balance and then pay it, this is what I have done and save for the Freedom on my first try (In November) and my denial for the BCE last month (forgot to leave a balance.) I've been instantly approved for all of my cards, and all with good limits for my income (12k, no complains about any of my limits, no CL requests for at least a couple of years.) I'll clarify more if it's not really clear what I wrote.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.

RewardHop
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Postby RewardHop » Fri May 10, 2013 12:06 pm

Anytime you use more than like 25% of your available credit limit, it looks bad. At 58% util, I don't think its a shocker to see it drop that much and Credit Karma is pretty sensitive to utilization.

Do what Snowman suggested above, pay your credit card a few days before the statement closing date. If I have a Chase card with a $5k CL and I spend $3k that statement period, I will typically pay off $2.5k before the statement period ends and then leave the remainder to be paid before the next payment due date.
[size=60]
Amex BCE: 3% grocery, 2% gas
Bank of America Better Balance Rewards MC: $25/quarter bonus
Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com
Discover It: 5% rotating
SallieMae MC: 5% Groceries, Gas, Amazon
US Bank Cash+ Visa Signature: 5% electronic stores, restaurants
Sock Drawered: Chase Sapphire, Chase Amazon[/size]

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Z06Biker
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Postby Z06Biker » Fri May 10, 2013 3:11 pm

What is the reasoning behind leaving a small amount to pay after the statement closes?
AMEX: PRG Gold, Business Simply Cash, Business Costco, BCE.
Chase: United MileagePlus Club, Sapphire Preferred, Amazon Rewards
Barclaycard Arrival World Mastercard
HSBC Cash or Fly World Mastercard
USAA World Mastercard, USAA Platinum Mastercard
Wells Fargo Business Platinum
USC Credit Union Mastercard

RewardHop
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Postby RewardHop » Fri May 10, 2013 8:23 pm

Z06Biker wrote:What is the reasoning behind leaving a small amount to pay after the statement closes?


Free interest for the extra $500 sitting in my bank account ;)
Ok not really, theres no real good reason.
[size=60]

Amex BCE: 3% grocery, 2% gas

Bank of America Better Balance Rewards MC: $25/quarter bonus

Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities

Capital One Quicksilver Visa Signature: 1.5% everything

Chase Freedom Visa Signature: 5% rotating

Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com

Discover It: 5% rotating

SallieMae MC: 5% Groceries, Gas, Amazon

US Bank Cash+ Visa Signature: 5% electronic stores, restaurants

Sock Drawered: Chase Sapphire, Chase Amazon[/size]

astro26
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Location: southeast

Postby astro26 » Sat May 11, 2013 8:43 pm

RewardHop wrote:Free interest for the extra $500 sitting in my bank account ;)
Ok not really, theres no real good reason.


FYI - I try to keep my utilization on at least one card at around 1-2%, I have found that my fico scores are best when I have a balance on a minimum number of cards, and that when my balance was 1-2%. Just something I noticed for myself.



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