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Please can someone explain me why does even lower my credit score:

  • Increase in my credit limit
  • lower my balance on the same credit card from ~$400 to ~$1 ( 1%)

Check the image below. Thanks in advance

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1 Answer 1

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Increase in my credit limit

Imagine if increasing your credit limits didn't lower your credit score. That would mean you could keep raising and raising your credit limits, allowing you to borrow more and more money. But the more money you can borrow, the greater the chance you'll borrow more than you can afford to repay.

lower my balance on the same credit card from ~$400 to ~$1 ( 1%)

Lowering balances usually improves your credit score. However, small reductions like this can sometimes result in a perverse affect where it worsens your credit score a small amount. For example, it could result in you having a greater fraction of your debt be secured (such as a car loan) which can reduce your credit because people generally prioritize secured loans over unsecured loans (because you don't want to lose your car).

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