Credit Score Dropped

[Annnettet]

Hi

I have a question maybe someone can assist me with.  I have had a colleague of mine's credit score drop to almost 50 points since early March.  I will say this , they have had to use card more than they would like to and the utilization of their card has gone up. I DO know that using the card does decrease credit score. Correct?  Just making sure that what the decrease is. Is it the utilization or the downing economy?

Any other suggestions?

Thanks!

I do own a small Internet Business and Podcast if you or anyone out there is in need of some encouragement, free business and lifestyle books and resources, or just want to listen to something new, do check out this podcast!  Support us!

Annette [last name removed]

[Opus 17]

The score won't be directly affected because the economy is slowing down, FICO doesn't know whether or not your friend lost their job or had a decrease in income.  They just know (apparently) that he or she is suddenly using a lot more of their available credit.  The credit score is supposed to be a prediction of how likely the person will be able to pay a new future loan, so a sudden increase in debt can be a red flag.  Someone who suddenly maxes out their credit cards and then applies for more credit may be a higher risk.  If he doesn't want to apply for new credit, just ignore it and the score will go back up as the bills get paid.