I moved countries a few years ago and am building up my credit score from scratch. I’m cognizant of good practices to build up my credit score like paying my credit card on time. My credit score dropped 10 points in the last month but I don’t know why. I’ve increased my spending on my card because of Christmas and travelling but make the payments right away (typically same day) so that there is not a large balance on my card at the end of the month. The total spending for the month is less than 30% of my credit card limit.
I don’t have any other form of credit like loans. Any suggestions why there was a drop?
You should wait for the statement to pay your spending instead of covering it same day. Otherwise it’s not reported to the credit agencies and it looks like you have no activity on your card.
Also, generally speaking some fluctuation from month to month is to be expected. I wouldn’t worry too much about 10 points in either direction.
Exactly. 10 points is nothing and you’re better off building longer term credit (on-time payments) instead of short term credit (reducing credit usage) unless you’re looking to use your credit in the next month or two (get a mortgage, auto loan, or credit card).