Score dropped twice in 24 hours!

[acleynes]

I had 8 baddies fall of my credit report in December 2012 and my score went from 665 to 805.  I became bold and decided to apply for the PenFed Gas Card.  Applying for the PenFed Card pushed my credit score even higher to 815 because of a new inquiry.  I managed to qualify for $16,500 and I transferred $14,000 worth of debt from 3 other credit cards onto my new PenFed card. 2 cards W/ $10,000 in my wife's name and $4,000 from one of my cards.

 I am weary of juggling so many cards and keeping up with due dates, so I decided to close almost all my credit lines.

These are the cards I kept:

PenFed $16,500 @9.99% interest    ($14,000.00/$16,500.00)

AAFES Chase Master Card $2,300 @10.24% interest  ($0.00/$2,300.00)

AAFES Store Card $8,200 @10.24% ($0.00/$8,200.00)

Arie Store Card $700 @ 24.99% interest ($0.00/$700.00)

Cards I got rid of.

AAFES Club Card $500 @ 8.25% interest (wife's)

AAFES Club Card $500 @8.25% interest

SEARS store card $2,000 @20.70% interest

SEARS Master Card $1,000 @ ??? interest

Macy's store card $700 @ 24.50% interest (wife's)

Macy's store card $100 @ 24.50% interest

AlaskaUSA CU Visa $2,500 @ 14.90% interest

JC Penny store card $900 @ 26.90% interest

Applied Bank Secure Card $1,000 @ 0% interest, $10/month fee

AAFES store card $5,200 @ 10.24% interest

So I increased my credit limit by $16,500 with my new PenFed Gas Card but at the same time decreased my limit by $14,400 by closing 10 credit cards in less than 30 days.

I also transferred $10,000 worth of debt that was only on my wife's credit lines/report.  So my new PenFed Card card is at 84% utilization rate already.  It was higher, but I already paid the $450 worth of transfer fees.  $450 in transfer fees = 3 months of interest on my previous 3 cards combined.  The balance transfer at 0.00% interest for 18 months is still worth it, even with $450 in transfer fees.

So last night, my credit score went from 815 to 799, and then not even 12 hours later, my score dropped again to 767.

First reason score dropped was: You have too many credit cards carrying balances.

My new PenFed Card with it's $14,000.00/$16,500.00 balance is already reporting, but the 3 credit cards that I transferred the $14,000 from, are still reporting a balance as well.  So it looks like I quadrupled my debt load.

Second reason score score dropped:  You have too many credit cards carrying balances

That is the same reason as the first one!!! 

It took no time for my new credit line to appear on my credit report, but it is taking forever for my balance transfers to even complete.  Much less even have a chance to reflect and be reported on my credit report.  I am afraid my credit report will show my new card with its balance transfers and the old accounts simultaneously for months! 

As far as I can tell, my credit report hasn't even caught up to the fact that I closed 10 credit lines totaling $14,400 yet.  There has been no credit alert mentioning a change in account status yet.  I fear my score will plummet even more once that happens.  I did not have the foresight to think about the balance transfers double reporting my debt.  I chose a really horrible time to start closing accounts.

I have no big purchase plans until 2015 when I apply for another mortgage and maybe upgrade to a Tesla Model X if the economy is right.  But I think I might have just committed credit score suicide.  I might be back to 665 by the time this week is over.

[bettercreditguy1]

It will take 45 days or so for everything to catch up. New accounts, just like new charges on your cc's appear within a day or two. Payments and transfers do not usually report until a few days after a statement date. You will be hit with the new account and high utilization dings. Your Mileage may vary as to how long before those dings fade, usually withing one year. It will depend on what else your file looks like. Your best bet is to pay down your Pen Fed as rapidly as possible. My suggestion is to keep paying monthly as much or more than you were paying on the individual amounts due on your closed accounts and you will be fine. Just do not apply for any new credit cards or loans for a while. And yes, always keep more than one primeville card, just in case.

[acleynes]

Up to 45 days to reflect...  Sheesh.  I check my account 45 times in one day.  This is going to be a long 45 days.

[clockscredit]

@acleynes I would love to hear what end up happening to your score.