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New Member
grooveman
Posts: 6
Registered: ‎12-08-2011
0

BIG Score Drop w/ New Tradeline

I don't think I will ever understand the FICO scoring model. I have been back and forth around the mid to lower 600's for the last year or two. This is mostly due to high util, a couple of 30 day lates in 2010 and credit inquiries.  

I recently applied for a line of credit at the Firestone dealer to purchase a new set of tires, and today that reported as a new tradeline with a $1000 limit, and 0 bal. As a result the score dropped from 615 to 559.. Does that sound normal? Seems like a big hit for just one new account..

Established Contributor
namvet
Posts: 866
Registered: ‎09-22-2011
0

Re: BIG Score Drop w/ New Tradeline

You score drop from the new account reporting is normal IMO.   Give it 6 months and your score should recover. 

Established Contributor
bettercreditguy1
Posts: 750
Registered: ‎02-11-2012
0

Re: BIG Score Drop w/ New Tradeline

That's about normal, Recently, I had 5 credit lines reporting a balance and I dropped 20 points. I am aware that my score will re-bound after the payments report next month. (I used some credit cards that are usually sock drawered so they would not get closed).

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
0

Re: BIG Score Drop w/ New Tradeline

A 56 pt drop doesn't seem normal, IMO. 20-25 seems normal, but I would pull your report to see what other changes are on there that could have caused a big drop (e.g. increased util, look to see if Firestone increased util, dropped accounts, added accounts, added lates, etc.).

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: BIG Score Drop w/ New Tradeline

+1   It might have been a combination of HP, AAoA and Util.   But HP alone and AAoA shouldn't have dropped it that far.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
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New Member
grooveman
Posts: 6
Registered: ‎12-08-2011
0

Re: BIG Score Drop w/ New Tradeline

I pulled my score power report and compared it with the one from just 3 days ago.

 

On the second page under whats hurting your score, "consumer finance account" has been added, which was not there before. Even though that account has been reporting on EQ since 7/2011. The only other difference is the new tradeline with a zero balance, otherwise no changes to my credit report.

 

So I have no clue why the consumer finance account just now shows up on the "understanding your FICO score" page, when it was not there before.

 

It is what it is I guess. Just a couple days ago I contacted my credit union and arranged to borrow 10k to satisfy that high interest consumer finance loan, so hopefully once that is reporting paid I will see some kind of score increase. The other obvious course of action is to significantly pay down my credit card debt. Which according to the score simulator, would bring me up to the high 600's, low 700's. But that will take some time.

 

Thanks for the comments and suggestions so far.

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
0

Re: BIG Score Drop w/ New Tradeline

Sounds like you were rebucketed if you had a change in your pos/neg items that help/hurt your FICO. However, the score change seems too high. I once lost over 50 when adding 3 new TLs, but I also had been app free for over a year and that was 3 new TLs. 

 

I'd zero in on the balances and util changes.

 

The CFL comment is relatively benign. It appears after the presence of a payday loan or a finance account like the former CitiFinancial (or whatever they are now), Wells Fargo Financial, and others, including certain furniture-like accounts. Even if paid off, the comment remains for as long as it reports. In most cases the length of history helps more than the comment hurts and usually removing the account will result in the demise of the comment but a drop in score. If the history is needed, let it be.

 

 

 

 

Valued Contributor
AndySoCal
Posts: 1,895
Registered: ‎04-07-2009
0

Re: BIG Score Drop w/ New Tradeline

Is the Firestone account a credit card ?  Did Firestone offyou special financing with this account on the tires?   Is the firesotne account reporting as the consumer finance company?

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
New Member
grooveman
Posts: 6
Registered: ‎12-08-2011
0

Re: BIG Score Drop w/ New Tradeline

The Firestone acct is a credit card, revolving acct.  And is reporting as such. That is the only change to my entire report in the last couple of months aside from a few inquuiries. And it resulted in an almost 60 point drop.

Established Contributor
TrishN
Posts: 505
Registered: ‎11-05-2012
0

Re: BIG Score Drop w/ New Tradeline

I opened 2 credit card and 1 auto loan. Score is 588 and 588. I don't know too lol

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
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