Reply
New Member
Mvpallstar617
Posts: 4
Registered: ‎12-22-2009
0

My credit score went down, why?

Well i got a Capital One credit card last year when i had no job. I maxed out the card quickly with holiday shopping and went over my limit. I payed it down and always made my payments on time. I have yet to miss a payment. I am now employed and going to college. I want to get a student credit card from Cit, so i decided to check my Fico score. On 12/8 my EQ score was at 616, it was low because of my length of credit history, and my revolving balance was 499 and i only had a credit limit of $500. I decided to use the tool to predict my fico score if i were to pay down about $200. The score went up to about the 690's. I got the debt down to $360, but used it once again for holiday shopping and brought it back up to 473.  I just made a payment of $200. When i just checked FICO today on 12/22 my score was at 588. I understand that my last payment off $200 has yet to update my score, but why did my score go down, when the balance went from 499-473? I havent applied for any other credit, or done anything that would affect my score. The only thing i can recall that might affected my score, was when i got a new phone from verizon, they do credit check.  I want to get my score up to the 680-700, so i can get approved for Citi MTVU or Forward Student card.
Regular Contributor
johnson_long
Posts: 163
Registered: ‎08-27-2008
0

Re: My credit score went down, why?

""The only thing i can recall that might affected my score, was when i got a new phone from verizon, they do credit check. ""

 

With a thin credit file and the new INQ,, that is very possible,  If you only have the one credit card, you really need to quit using it and paydown the balance since it's "max'd out" as far as FICO scoring goes,, Paying the balance down by $26 didn't help any, you're still at 95% utilization,,

 

You need to get that under 30% like the simulator showed you,  

 

Get your balance paid down before you apply for any credit cards,  You'll likely be declined and the new INQ's will drive your scoreeven lower,

 

 

Established Member
Dunadan
Posts: 19
Registered: ‎12-10-2009
0

Re: My credit score went down, why?

Johnson long is right.

 

ideally (my underlying premise being that your goal is to obtain optimal credit) a credit card should be utilized up to 40 or 50 % of the credit line (250 in your case) (until rigid discipline has been devoloped. even then this rule is a safe one to follow from what i've heard).  following this concept, you shouldn't ever run into serious problems, paying off these bills shouldn't be hard.  If you ever make a purchase that close to your credit line (ie. 499), set aside money specifically for paying that off.  using a credit card because you don't have the cash or asset to back it up is probably not a safe move for a new credit user (as i am finding out), at least if your goal is to build good credit.

 

As for why exactly your score dropped so far between that time interval, i'd be interested to hear from others as well, i'm pretty new to these concepts...

 

 

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: My credit score went down, why?


Mvpallstar617 wrote:
Well i got a Capital One credit card last year when i had no job. I maxed out the card quickly with holiday shopping and went over my limit. I payed it down and always made my payments on time. I have yet to miss a payment. I am now employed and going to college. I want to get a student credit card from Cit, so i decided to check my Fico score. On 12/8 my EQ score was at 616, it was low because of my length of credit history, and my revolving balance was 499 and i only had a credit limit of $500. I decided to use the tool to predict my fico score if i were to pay down about $200. The score went up to about the 690's. I got the debt down to $360, but used it once again for holiday shopping and brought it back up to 473.  I just made a payment of $200. When i just checked FICO today on 12/22 my score was at 588. I understand that my last payment off $200 has yet to update my score, but why did my score go down, when the balance went from 499-473? I havent applied for any other credit, or done anything that would affect my score. The only thing i can recall that might affected my score, was when i got a new phone from verizon, they do credit check.  I want to get my score up to the 680-700, so i can get approved for Citi MTVU or Forward Student card.

Have to clarify....you pulled a new EQ FICO report from this website for the 616 score and the 588 score?

New Member
Mvpallstar617
Posts: 4
Registered: ‎12-22-2009
0

Re: My credit score went down, why?

Yes, both scores were pulled from myfico.com. I just looked at both of them again and their almost identical except for the section where it says understanding your score. On the 616 score, it says the things hurting my credit are few acts. paid on time, short account history, high credit usage, and seeking credit. On the 588 score, it says the same things except that high credit usage is first. Also when I did my future fico scores, the 588 was much lower after I paid of my balance than the 616 score. Other than that other everything is identical.
New Member
Mvpallstar617
Posts: 4
Registered: ‎12-22-2009
0

Re: My credit score went down, why?

Thanks Dunadan for the information and advice.:smileyhappy:
New Member
Mvpallstar617
Posts: 4
Registered: ‎12-22-2009
0

Re: My credit score went down, why?

Thanks Johnson for the information and advice. :smileyhappy:


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}