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I just received an credit alert and my score dropped by 100 pts. Two weeks ago my credit score said I was 639, so I applied for (2) cards to start re-building my credit. I submitted an application for Discover and Capital One. Was approved for both with a credit limit of $1k. Then, I just received the alert today stating I dropped by 100pts. What did I do wrong? And, honestly I only applied for the (2) cards. Trying to understand this credit system and how it works. So, please bear with me.
I would think a point drop that dramatic came from the introduction of a negative item or going from single digit utilization to maxed out utilization on a thin/young file. If you could provide some more information about the contents of your credit report with as many specifics as possible it would definitely help.
@Oakland915 wrote:I just received an credit alert and my score dropped by 100 pts. Two weeks ago my credit score said I was 639, so I applied for (2) cards to start re-building my credit. I submitted an application for Discover and Capital One. Was approved for both with a credit limit of $1k. Then, I just received the alert today stating I dropped by 100pts. What did I do wrong? And, honestly I only applied for the (2) cards. Trying to understand this credit system and how it works. So, please bear with me.
The score drop was not caused by your 2 new accounts.
You need to pull your reports if you want to know what caused it.
It was not the apps. As said SJ check your reports. BK? High Utiliz? New Charge off or 30-60-90-120 day late appearing? 100 Points is rather large. Go to CCT and get copies.
I just checked my reports and it states the following:
Collection Accounts
Paypal
Paid in Full
Fingerhut
unpaid balance reported as a loss by creditor
This account is now with Midland Bank. I'm working on paying this off with them
Balance $720.00
Authorized User on my wife's Capital One account
Reporting: Account paid as agreed
Credit limit: 1,000
Balance $52.00
New Accounts I just acquired
Capital One $1,000 credit limit
Balance $0
Discover $1,000 credit limit
Balance $0
Public Record
November 29, 2016
Owe 2,016
This is what is on my credit report as of 4/20/2017
Also, I don't know if this has anything to do with it. When I first ordered my reports on 4/8/2017 from my fico it stated no information available for:
Payment History
Debt. Amount
Length of Credit History
New Credit
But, had me at a score of 639 across the board except for Experian
Now, as of 4/20 it staes
Credit history of 9 years
Accounts: 5
Negative: 3
Past due: 0
Well, if your score on 4/8 wasn't taking into account your payment history but on 4/20 it was, your score now is going to be significantly worse as you have 3 negative accounts with poor payment history being factored in.
@Anonymous wrote:Well, if your score on 4/8 wasn't taking into account your payment history but on 4/20 it was, your score now is going to be significantly worse as you have 3 negative accounts with poor payment history being factored in.
That is indeed the bad news.
Only consolation for you to turn things back around is to get cracking as best you possibly can with working on those NEGS.
I had a single PR for some period of time and it dragged my numbers down until the thing finally lifted.
Good News is that you are a member of this great forum and can get started addressing those issues with plenty of guidance and moral support to help make things work in the right direction again.
Yes, it takes time and in the meantime annoys like a blister but just keep at it and don't let up.