‘I’m stumped’: I put $3,000 on my credit card during a vacation and my credit score plunged. Why is it so volatile?

Core Insights - Credit scores can fluctuate significantly based on recent spending patterns, even for individuals with a long history of good credit [4][5] - Credit utilization ratio is a critical factor in determining credit scores, with a recommendation to keep it below 30% [6] Group 1: Credit Score Volatility - Sudden changes in credit scores are not personal judgments but are based on unusual spending patterns, such as increased credit usage [3][4] - Credit scores can drop from excellent (800) to good (750) due to temporary spikes in credit utilization [4] Group 2: Credit Reporting Agencies - The three major credit-reporting agencies (TransUnion, Equifax, Experian) generate their own reports and scores, which may differ due to varying update schedules [5] - Credit reports can be updated multiple times a month based on new information or changes in existing accounts [5] Group 3: Credit Utilization Ratio - Maintaining a low credit utilization ratio is essential for a good credit score; using 25% of a $10,000 limit is preferable to using 50% [6] - Canceling a credit card can inadvertently increase the credit utilization ratio, negatively impacting the credit score [6]