Lower your credit cards. Did you know that the balance on your credit card can cause a 150 point swing. That’s and extreme case but a 20-30 point swing in a month is very common. What’s the reason for the point swing? You earn a LOT of points for having a lower balance on your credit card. A maxed out balance (anything over 50% utilization) can have a severe negative impact on your scores. In other words, the lower the balance, the more points the card will give you.
When does the credit card company report your balance?
Timing is everything. Make sure to pay your card(s) before they report to the bureaus. Your credit card company only reports your balance to the bureaus on 1 day of the month. Which day? Depends on the creditor. For example, if your reporting day is on the 1st and you wait to lower your maxed balance on the 2nd , it will be a full month before your balance is reported lower again. This explains how a credit report can show a maxed balance after you’ve paid off your card. One strategy is to call the credit card company and ask what day of the month they report your balance to the bureaus. Then always make sure your balance is lower before they report it.