Lost 9 points for carrying a balance on a card?

[sethmachine]

I've just checked my credit score through CreditKarma and apparently my score went down 9 points!

The only thing that changed was I started carrying a balance on a credit card (at 20% of total credit now), because the card has 0% APR on balances for a year, and I can use money I would otherwise be using to keep the balance at 0 on things which have interest rates, e.g. student loans.

I haven't gotten any new lines of credit, and I've made all my payments on open lines of credit on time.

Does this sound correct?

[sv2007]

Given that each credit company computes its score using its own proprietary formula, how much should you believe a forum answer? If your score has stayed the same for years, then the only change is the 0% balance, then it does seem likely. BTW there's also a lag between changes and credit score, so your score must be stable for a long period of time then only this one 0% change.

Also, as long as you aren't below certain cut off score, it doesn't matter too much how high/low your score is.

[kork13]

Your credit score is a living, breathing thing that is constantly changing. Even the slightest change in your credit profile will have an impact on your score. Starting to carry a 20% balance on one of your credit cards is definitely a notable change to your credit profile, and I'd be surprised if your score only went down by 9 points. Sure, you aren't beyond the 30% line in the sand for being a negative indicator, but suddenly carrying over a 20% balance is most assuredly a red flag. They don't know (or care) why you're doing it.

ETA: Don't worry about the day to day shifts in your credit score. People worry too much about their credit scores. If you have a good one (740+), keep up your good habits. If yours needs some work, make the changes that will improve it, and be done with it. Don't obsess over your score.

[Nutria]

I can use money I would otherwise be using to keep the balance at 0 on things which have interest rates, e.g. student loans.

Are you a college student living "on the edge"?

[sethmachine]

Are you a college student living "on the edge"?

No, I work full time, but wish to take advantage of the 0% APR of my new credit lines.

I've carried a 0% balance on all my cards forever. This is the 1st time in my credit history I've had a utilization over 2% on any given card.

I guess that is a red flag for the scoring algorithms then?

[Nutria]

I guess that is a red flag for the scoring algorithms then?

Probably. Unless those 9 points drops you from one quintile to another, I wouldn't worry about it.