Chase lowered my limit - how does it take to rebuild lost points?

Question

I recently got a loan and noticed my credit score dropped from X50 to X18 (don't want to reveal personal info on line). Turns out (the only thing I can't think of) back in Oct Chase raised my credit limit. I misunderstood the terms. Apparently, they wanted to me carry an avg daily bal of $1,000 (I've never even owed that much on this card). When it didn't happen, the lowered it. The downfall here is that I had made two purchases on this card that never would've been made had I known they were going to do this. So, now I'm using 65% of my credit line (around 60% after my next payment).

I have a feeling those points won't reappear as quickly has they disappeared. My question is - how long will it take to rebuild those pts?

The change in the score was prior to the loan appearing on my credit report. I'm actually hoping this loan will help my score since it paid one c/c balance to $0 and paid off a high interest loan / charge acct.

This is a typical c/c that is offered by Chase. They raised my credit limit a few thousand dollars and said to keep it I had to spend $100/month and keep an avg balance of $1,000. I assumed the avg balance was for the year - not a daily limit. I've never heard of this either, and never expected them to lower as much as they did.

The above info is what someone told me yesterday. However, I went back and looked and it said "or." I'm in the process or arguing w/them over this because their letter states "month" and they said it's actually per billing cycle. Well, for the month my son was born, my bill was only $51.51, but my purchases for the month was $95! A bit misleading. If they won't change their mind oh well. I'll just work that much harder to finish paying it down and go back to using it for gas purchases and paying it off each month.

Answer 1

Well if your the X is 7 you have nothing to worry about any score in that range is excellent credit. However, since you are asking this I am assuming that the X is 6. You are still okay, just pay down as much as you can on that card as fast as you can. Over time it will improve. The credit scores give weight to your credit usage on a single card, but if you overall useage was still under 30% this should not have hurt you that much. On any given month your score could bounce 5-20 points so your bounce was a bit out of range but still not really out there.

However, I think you still might be misunderstanding the terms or this is not a regular credit card you are talking about. I have never seen a company require that you keep a $1000 balance on a credit card to have a higher limit. But I have seen where you need to keep balances in other types of accounts such as a checking, Savings, or CD.

Answer 2

First, you say you "recently took out a loan"....was this drop before or after the loan showed up? Having a new account can lower your score until the account ages a little bit.

Your points will go straight back up the second you lower the balance.

Also, scores are weird. I watch mine fluctuate becuase I have a credit monitoring service, and literally NOTHING can change on the reports and the score will jump around within a 5-15 point range.

Answer 3

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