Why Your Credit Score Can Drop After You Get a Raise

In this episode of The Credit Score Podcast, Lucas and Luna explore a counterintuitive phenomenon: why your credit score might drop after you get a salary increase. They delve into the mechanics of credit utilization, the impact of increased spending power, and how lenders view changes in income relative to debt. Using a case study of a borrower who saw a 30-point FICO drop after a promotion, they explain the role of balance-to-limit ratios, credit card usage patterns, and the timing of credit reports. The hosts also discuss strategies to avoid this dip, including keeping utilization below 30% and not immediately increasing spending after a raise. Tune in to understand how your financial wins can sometimes confuse the credit scoring models. #CreditScore #FICOScore #SalaryIncrease #CreditUtilization #CreditReport #Finance #PersonalFinance #CreditTips #BorrowerHealth #CreditScoring #DebtManagement #FinancialLiteracy #CreditCard #Lending #FexingoBusiness #BusinessPodcast #TheCreditScorePodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo