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A96
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A96
Posts: 2
Registered: ‎01-06-2014
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Score Drop:Decrease in account balance

I'm new to the forum and was hoping someone can help me understand. My CK alert shows that my score dropped 16 pts because of a decrease in my loan amount. Is this normal? Will my score drop and then bounce back?
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user5387
Posts: 1,794
Registered: ‎07-01-2010
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Re: Score Drop:Decrease in account balance

More details would be useful.

 

One case that comes to mind is if you're carrying a small balance on a single CC, and pay it in full.  In such a case, your score may go down rather than up.

 

A96
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A96
Posts: 2
Registered: ‎01-06-2014
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Re: Score Drop:Decrease in account balance

I recently paid my first payment on a small personal loan (paid double the monthly payment), and now that the payment has posted on my CK, It has caused my score to drop 16pts. I'm not sure why paying my bill would hurt me.
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user5387
Posts: 1,794
Registered: ‎07-01-2010
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Re: Score Drop:Decrease in account balance

I don't know the answer, but another possibility is that the new account itself is responsible for the drop, rather than making a payment on it.

 

I don't know how accurate CK is at reporting this sort of thing.

 

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Revelate
Posts: 9,472
Registered: ‎12-30-2011
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Re: Score Drop:Decrease in account balance


A96 wrote:
I'm new to the forum and was hoping someone can help me understand. My CK alert shows that my score dropped 16 pts because of a decrease in my loan amount. Is this normal? Will my score drop and then bounce back?

Ignore CK.  It's a funky score to say the least whose major value is for entertainment purposes franikly.  Has no correlation with FICO scores, not certain any lender even actually uses it despite TU's claim.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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