How Badly Does It Hurt Your Credit Score to Make a Large Purchase With a Credit Card

Title: How Badly Does It Hurt Your Credit Score to Make a Large Purchase With a Credit Card?


Credit cards have become an essential tool for making purchases, especially when it comes to larger expenses. However, many individuals worry about how using credit cards for significant purchases might impact their credit score. While it’s true that credit card usage affects your credit score, the extent of the impact depends on various factors. This article aims to explore the implications of making a large purchase with a credit card and shed light on frequently asked questions surrounding this topic.

Understanding Credit Scores:

Before diving into the effects of making large purchases with a credit card, it’s crucial to understand credit scores. Your credit score is a numerical representation of your creditworthiness, serving as a measure for lenders to assess your ability to repay borrowed funds. Factors such as payment history, credit utilization, length of credit history, types of credit, and new credit applications influence your credit score.

How Does Making a Large Purchase Impact Your Credit Score?

1. Credit Utilization Ratio:
When you make a substantial purchase with your credit card, it can significantly impact your credit utilization ratio. This ratio is the amount of credit you’ve used compared to the total credit available to you. High credit utilization, especially if it exceeds 30% of your credit limit, can negatively affect your credit score. It signals potential financial strain and may indicate a higher risk to lenders.

2. Temporary Score Drop:
Making a large purchase with a credit card can result in a temporary decrease in your credit score. This occurs because when you use your credit card, your overall debt increases. However, this drop is usually short-lived and is resolved as you make timely payments.

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3. Impact on Payment History:
Timely payments are crucial for maintaining a good credit score. Making a significant purchase can affect your ability to make monthly payments on time, which may negatively impact your payment history. Late or missed payments can significantly harm your credit score and take time to recover from.


1. Will making a large purchase lower my credit score permanently?
No, making a large purchase will not permanently lower your credit score. Any decrease is typically temporary and can be rectified by making timely payments and keeping your credit utilization low.

2. Should I avoid using credit cards for significant purchases?
Not necessarily. Credit cards offer various benefits, such as rewards, purchase protection, and convenience. Making large purchases with a credit card can be advantageous if you have a plan to pay off the balance promptly.

3. What steps can I take to mitigate the impact on my credit score?
To lessen the impact of a large purchase on your credit score, consider the following steps:
– Plan your purchase and ensure you have the means to repay the debt promptly.
– Keep your credit utilization ratio below 30% by paying off a portion of the balance before the statement closing date.
– Make timely payments to avoid negative marks on your payment history.

4. Can I improve my credit score after making a large purchase?
Yes, you can improve your credit score by taking proactive measures. Prioritize making timely payments, reducing your credit card balances, and avoiding additional debt. Over time, responsible credit management will help rebuild your credit score.

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Making a large purchase with a credit card can impact your credit score, but the extent of the impact depends on various factors. By understanding how credit utilization, payment history, and other credit factors influence your credit score, you can make informed decisions when using credit cards. Remember to plan your purchases carefully, pay off balances promptly, and maintain a healthy credit utilization ratio. By doing so, you can minimize any negative effects and continue to build a strong credit history.