Credit score dropped by 200 points

Sazsoa123

Hi, 
So I’ve recently applied for a credit and got approved. My credit score had been sitting at 950 but I wanted to improve this and due to that I got a credit card. However, in the first month, I maxed out the credit card. Even though this was the case, I paid it back within a month without incurring any additional charges. I thought this was ok but after checking my newly updated Experian score, it had dropped almost 210 points. What is the reason for this and does anyone know how I could improve this and how long this could take? 

All help appreciated. 

Thanks

magpies79

There is a sticky in this section which explains the Meaning of your credit score which to cut a long story short score is pretty much meaningless not been on the forum long but have Always known the score is a gimmick, your history is what you need to be focused on everything getting paid on time, no missed payments, and using credit cards while paying off balance in full so no interest being charge will all go a long way into either maintaining or improving your credit history and that’s what matters not the score
someone could quite possibly have exactly the same credit history as you or even worse and there score might of gone up by 200 just to give you an example of how meaningless the score is hope that helps.

The_Fat_Controller

The CRAs always give me "warnings" when my CC utilisation goes above 25% of my limit, even though I have never failed to settle the full balance every month.
If you have "maxed out" a new card  that may have triggered an algorithm at Experian resulting in the drop.

teachfast

Credit score means nothing. Don't worry about it. 

Ebe_Scrooge

The reason your score dropped is because you've opened a new line of credit.  It's not even the fact that you maxed out your card, it's simply because you opened a new card.  Your score will drop in reaction to any change in your credit circumstances, good or bad.  Make a late payment, it'll drop.  Open a new card, it'll drop.  Win the lottery, pay off your mortgage and all your debts, it'll drop.  Thankfully, the score itself means absolutely nothing, and is not used by any prospective lender (in fact, they can't even see your score, even if they wanted to).

What you do want to do (and it appears you're doing it) is to use the card regularly, for everyday purchases (food, travel costs, whatever), and make sure you always pay off the statement in full when it arrives, every month without fail.  It makes no difference how much you put on the card, the key thing is to always pay in full, after the statement arrives but before the "payment due" date.  Doing this will slowly build up a favourable credit history - at the most basic level, lenders are looking for a pattern of responsible borrowing and repayment.  I.e., borrow only what you can afford, and always meet your repayment obligations.  Always repay in full - if you don't, you'll be charged interest, it can also be viewed as a sign that you're struggling to service your debts.

And to reiterate what others have said - ignore your score!  :-)

DCFC79

All that matters is your history is up to date and correct, your score is only seen by you only.

PRAISETHESUN

As above - ignore your score, focus on building credit history.
As long as you are paying off your card in full every month then it doesn't matter if you max out the card or not. Paying in full every month will be seen by lenders as a positive thing, regardless of how much your "score" dances around. Keep doing it and over time you'll find yourself eligible for higher limits and better credit offers.

floppydisk1

Your credit score might have dropped like Boris Johnson's underpants , it means about that much too... as long as you paid in full, all you care about is long term story on your credit file(  everything paid on time and in full - that's all that matters, none of those CRA's gimmicks ... )