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Credit Score Drop!!

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lg8302ch
Senior Contributor

Re: Credit Score Drop!!


@clewis122 wrote:
Correction: 41 point drop.

No collections. No late payments.

Just 2 new cards (my AAOA dropped a few months) & higher utilization.

Thanks guys.

hmm.... My worst cut was 18yrs to less than 3 yrs in 2012 and I only lost like 10 points but when more than 50% of my accounts reported a balance I lost 45 points. Could this be the reason for your drop maybe? How many accounts in total and how many of these reported a balance now? 

Message 11 of 25
clewis122
Valued Member

Re: Credit Score Drop!!

I just did a quick research on "rebucketing". That was a brand new term for me. How would I know if that's what caused the drop? For what reasons does rebucketing usually occur?
Message 12 of 25
lg8302ch
Senior Contributor

Re: Credit Score Drop!!


@clewis122 wrote:
I just did a quick research on "rebucketing". That was a brand new term for me. How would I know if that's what caused the drop? For what reasons does rebucketing usually occur?

That is pretty much a secret and the same mystery as the Fico formula itself. ... if there is no other explanation this might be it but you cannot tell for sure. 

Message 13 of 25
Hokies2379
Established Contributor

Re: Credit Score Drop!!

I won't give you a good answer on it myself. 

Message 14 of 25
clewis122
Valued Member

Re: Credit Score Drop!!

Jan 4: 736 Fico
$66 on 1 of 2 cards
$650 Total CL
10 % Util
3.2y AAoA

Jan 7: 695 Fico
$254 on 2 of 3 cards (4th card hasn't reported)
$ 1150 Total CL
20% Util
2.4y AAoA
Message 15 of 25
lg8302ch
Senior Contributor

Re: Credit Score Drop!!

Not sure how your accounts reported.  What I would suggest is to let 1 account report less than 10% and all others with 0 balance for your next cycle and then compare your scores again. Even a 1$  balance on an account makes a big difference.  When I was testing Score Watch (an old  Fico product for Equifax) I managed to loose 46 points for 8$ balance which was 1% overall utilization.  I did let 1$ report on each of my 8 accounts at that time. Crazy ? yes but I was hardcore testing with my profile and found interesting results like this. The month afterwards I did 0 balance on 7 accounts and 8$ on 1 account and bam... 46points right back. 

Message 16 of 25
lg8302ch
Senior Contributor

Re: Credit Score Drop!!


@clewis122 wrote:
Jan 4: 736 Fico
$66 on 1 of 2 cards
$650 Total CL
10 % Util
3.2y AAoA

Jan 7: 695 Fico
$254 on 2 of 3 cards (4th card hasn't reported)
$ 1150 Total CL
20% Util
2.4y AAoA

more than 50% of your accounts with a balance .. this is my explanation for the drop Smiley Sad

 

edit: posted above before I saw your summary

Message 17 of 25
Hokies2379
Established Contributor

Re: Credit Score Drop!!


@lg8302ch wrote:

@clewis122 wrote:
Jan 4: 736 Fico
$66 on 1 of 2 cards
$650 Total CL
10 % Util
3.2y AAoA

Jan 7: 695 Fico
$254 on 2 of 3 cards (4th card hasn't reported)
$ 1150 Total CL
20% Util
2.4y AAoA

more than 50% of your accounts with a balance .. this is my explanation for the drop Smiley Sad

 

edit: posted above before I saw your summary


Hell, if that's the case, I"ll be at a 780 when I clear my balances off.  (but no, I won't really.)

Message 18 of 25
clewis122
Valued Member

Re: Credit Score Drop!!

Well, there it is. The solution!! Having just ONE card reporting less than 10% is critical, I see. I just hope my score rebounds quickly. I worked pretty hard to get them in the 700s.

Thank you for all the useful information!! I appreciate you guys dropping a lil credit knowledge!!! These forums are everything!!!
Message 19 of 25
Anonymous
Not applicable

Re: Credit Score Drop!!


@clewis122 wrote:
I checked again & my utilization went from 10% to 22%. Could that be the cause?

Could be a portion of it - mine dropped about 25 pts because of UTIL this month - it'll bounce back when I pay off Christmas!  

ETA:  Also the 2 out of 3 cards reporting a balance hurts too.......

See if anything else happened too - maybe it's a combination of stuff. (Inquiries/Util/AAoA all mixed together)  

Message 20 of 25
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