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FICO drop of 75 points after opening checking account -- advice?

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Anonymous
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FICO drop of 75 points after opening checking account -- advice?

Hey there --- I recently had my score drop 75 points (naturally as I am considering purchasing a home).  I was notified through FICO's Score Watch program.  Score Watch made note that the drop occurred at the same time as an inquiry from a bank was registered.  I am wondering if I can dispute this since I was not in the bank to apply for a credit card or loan, but to open a free checking account that is required by my new job.

 

For a bit of background I recently started with a job that requires each person to hold a separate bank account for the position [I'm a Magistrate and when we accept cash bonds we must deposit them into a specifically designated magistrate banking account that is held at a bank separate from our own personal bank for auditing purposes.] 

 

Does anyone have any advice on how to fix this issue?  I know folks who don't pay their bills for months and do not have a FICO drop that drastic!  

Message 1 of 5
4 REPLIES 4
JoeBJay20
Established Contributor

Re: FICO drop of 75 points after opening checking account -- advice?

It's highly unlikely that an inquiry caused a 75 point drop.  Generally, people see a 5 or so point drop for an inquiry.  Something else must have changed on your reports.  You need to go back through your reports, before and after, to see what's different on your new report. 

 

But to answer your question, there is little you can do about the inquiry itself, as the bank has a permissible purpose for pulling your report.  It's common practice for banks to pull your report in conjunction with opening an account, that you did it for your job has no bearing on the issue. 

Message Edited by JoeBJay20 on 06-26-2009 04:54 PM
Message 2 of 5
Anonymous
Not applicable

Re: FICO drop of 75 points after opening checking account -- advice?

Thanks for the reply.  I am printing my newest report now, so I will review it with a fine tooth comb.  But from reviewing it online I could not find any other change.  Thanks again for the advice.
Message 3 of 5
haulingthescoreup
Moderator Emerita

Re: FICO drop of 75 points after opening checking account -- advice?

Look especially at changes in dates, changes in descriptions, accounts dropping off and so forth.

And I agree, no way does an inq hit you for 75 points. Even our members with scores around 800 don't get hit that hard.

The "possible reasons" that come with Score Watch alerts are first cousins to the messages on a Magic 8 Ball.

And make sure that a judgment or collection didn't show up out of nowhere! They're on separate screens and can be easily missed if you've never had one. I'm afraid that a 75-point loss sounds like one of those hitting your report.
Message Edited by haulingthescoreup on 06-26-2009 04:09 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 5
Anonymous
Not applicable

Re: FICO drop of 75 points after opening checking account -- advice?

Thanks so much for the help.  The next day the score went back up -- and then the day after that it went back down again Smiley Sad  However at least the last time it went down it gave me an indication of why.  I have a school loan that erroneously has reported that I pay 31-60 days late and that I owe then $14 dollars -- neither of which is accurate.  So I have called the loan company, and they have flagged my account as inaccurate.  They also told me to dispute the inaccuracy with the CRA [Equifax in this case] and they would tell them that it was false reporting.  When I called EQ today to get addresses removed from my report that I NEVER lived at, I also asked if I should dispute the issue though mail or online since I may need to send documentation.  The person on the phone told me that the account was listed as pays as agreed with nothing late -- should I still dispute formally through mail/CMRRR?

 

Also finally -- is that enough to kill a FICO for 75pts or should I still be on the look out for something else to show up?   How long can it take before FICO rights itself?

 

 

Thanks again for the amazing help!   

Message 5 of 5
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