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WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

Established Member

WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

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.

6 REPLIES
Senior Contributor

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

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.

Super Contributor

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS


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.

 

 

FICO8 EQ 725 TU 750 EX 717 Total revolving credit 443500
Established Contributor

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

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. 

Established Member

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

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

 

Senior Contributor

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS

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.

Super Contributor

Re: WHAT JUST HAPPENED! CREDIT SCORE JUST DECREASE BY 100 PTS


BrutalBodyShots 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.