Score dropped 29 points - Help me understand

[Itsmeagain]

I monitor my score with 'ScoreWatch'. I've been hovering around but above 700 for about a year. I use my cards but PIF most every month. Last month I received a new 'Chase' card. Only 1 inquiry that month. The only other changes in my CR were two balance increases . . . one for $67, the other for $147 (which were paid last week). My total debt to credit ratio in under 25%. No derogs.

Why would my score drop so dramatically?

Is the current credit crisis causing a reevaluation of credit scores?

Has the dreaded 'FICO 08' finally rearing it's ugly head?

Is anyone else experiencing such a sudden and dramatic drop?

Thanks

[MidnightVoice]

Inq - score drop

New Account - score drop

Lower average age of account - score drop

All will recover over the next 12 months.

And as far as we know, the scoring formula is still pre '08 and the Credit Crunch has not affected scores, just the requirements that lenders need to give ctrdit are no often higher.

[haulingthescoreup]

And to add, it might be:

More CC's than usual reporting balances - score drop

Usually you can get a pretty good idea by comparing the positives and negatives on screen 2 for the pre- and post-dropped scores. I wouldn't place a whole lot of credence in the reasons that come with the alert though. They can be slightly less helpful than a magic 8-ball.

FICO 08 is shuffling around out there somewhere, but it's nowhere close to being here at myFICO. So the scores you get here are still being created by the same barely-understood rules.

[Anonymous]

New accounts coupled with balance increases tend to spook the scoring formula, making it look like you're going for more credit and perhaps overextending yourself.

Keep your balances low, and things will settle down by the end of the year.

[Itsmeagain]

Thank you for your replies. It just HURTS to have such a drop in one day. The last time I saw such a drop was when a collection appeared on my report (which was disputed and went away). I've struggled for a long time to get my score up to 700 and watched it climb a point or two each month and now, to take a 29 pt. hit . . . well, it could be worse.

I guess it's sort of like gas prices . . . only the reverse . . . goes up slow but comes down like a rock.

Cheers,

Itsmeagain

[Anonymous]

I understand how you feel.  I had an 11 point drop this week due to "An account that was inactive for some time has become recently active".  Well this account is with Dell computers.  I have a $3000 credit limit and a $0 balance, and I recently purchased a memory stick for my digital camera...the total spent was $15.  Can you believe I dropped 11 points for a $15 purchase on a $3000 CL just because I have not used the account in many months???  It is just mind-blowing at how ridiculous the FICO system can be.  I bought a condo about 4 months ago, so I started monitoring my credit about a year ago.  Now I don't stress as much with changes since the home purchase, but dropping 11 points for a $15 purchase takes the cake!