I think buying a motorcyle droped my credit score?

Question

I purchased a bike for 9,460 and they put it on their motorcycle credit card with a 10,000 dollar limit did this drop my score

Answer 1

carrying a balance on a credit card and owing more than 50% of the total credit limit on that card will hurt your score yes, because your credit line is almost totally utilized

Answer 2

Buying a motorcycle has no direct effect on your credit score though it may affect different types of insurance you apply for. Credit score is based soley on debt-income ratio so if you bought the "hog" on credit alone it may have shown on your credit report as another debt. However, if you applied for a credit card soley from a motorcycle/credit company they most likely have a limit on what amount you can charge.

Answer 3

Any big purchase will always drop your score, in your case it was because you put a $10,000 purchase on a card. Usually, its because they ravage your credit with checking 6 or 7 banks for the best credit line.

Answer 4

Yes it did. You are now using a large percentage of your available credit. You want to use 30% or less.