Hi guys! I just received a notification that my FICO scored dropped 7 points due to my Capital One credit card. Can someone please explain this?!! I just got this card! At this point I can't afford for my score to drop anymore. It was actually going up and now this! My first payment is due on Dec. 21st, when I pay the balance in full, will that help my score go back up, or do I have to show good payment history for a longer period of time?
The drop is likely due to the hard inquiry that was performed when you applied for the card. This usually accounts for about a 5 point loss. A 7-point swing isn't a whole lot, so I wouldn't be too concerned at this point. As you use the card responsibly (always paying on time and in full) while keeping a low credit utilization your FICO scores should increase. Be patient though...it may take 3-6 months before you really start seeing a nice increase across the board.
If you continue to make your payments on time and keep your balance at 10% or less of the credit limit for at least two years you will see about a 30 to 40 point increase with your credit card. Thanks! Heather with BoostMyScore.NET
