Why Your Credit Score Drops When You Use Less Credit

Episode 54 of The Credit Score Podcast with Fexingo explores a counterintuitive truth: using less credit can actually hurt your FICO score. Lucas and Luna dive into the 'use it or lose it' problem, where inactive credit cards get closed by issuers or result in a lower score due to reduced available credit. They examine the case of a listener who saw a 35-point drop after paying off a card and not using it for six months, and discuss strategies like setting a small recurring bill to keep accounts active. The episode also touches on how the FICO scoring model rewards utilization patterns, not just debt avoidance, and why a zero balance isn't always optimal. Hosted by Lucas and Luna. #CreditScore #FICO #CreditCards #CreditUtilization #CreditReport #PersonalFinance #Finance #CreditScorePodcast #FexingoBusiness #BusinessPodcast #LucasAndLuna #InactiveCredit #ZeroBalance #CreditLineClosed #UseItOrLoseIt #CreditTips #FinancialWellness #BorrowerHealth Keep every episode free: buymeacoffee.com/fexingo