Posting for a friend.
At the end of November, my friend’s credit score dropped more than 100 points according to Credit Karma (Transunion Score). They claim it’s because the occupancy was too high (54%) – see Photo 1 below. The credit limit for this card was $ 300. So if a little more than $ 150 was used on the card, it appears to have had a big impact. You can see the drop in Photo 2 below.
The Equifax credit score was also affected, but by far less than 100 points – see Photo 3 below.
As soon as he noticed his credit score had gone down, he called Credit One (credit card in question) to pay the bill (NOT late, just high occupancy) the same day, however the credit is still low a few months later .
What credit score should we believe as they are very different today: Transunion: 556 / Equifax: 620.
How can I help them improve their bankroll? I just put him on my credit card as an authorized user as he can’t open a new user himself which should help over time. It’s hard to believe that a 56% utilization rate using a limit of ~ $ 150 / $ 300 would lower your score so much and for so long. The Transunion score appears to be very low, with Equifax being more accurate to me.
Photo 1: Illustration of the reason for the large decline (high utilization) https://i.imgur.com/TNUrcC9.jpg
Photo 2: Transunion Score Major Drop History https://i.imgur.com/TklLzeK.jpg
Photo 3: Equifax score history https://i.imgur.com/6Tz4PHj.jpg
Thank you everyone for your thoughts and suggestions.