What I am doing wrong?

[Anonymous]

My score have dropped ~ 60 point since Nov. 2014. I was 738 and now 682.

In Nov, I paid off  two credit cards and I got 3 hard inquires

Consolidate $3000 in total in two credit card with high % to cards with 0% for 16 mo and 12%

two store credit card put then less of $100 ea

Increase my limit in few hundred to $3000 in 3 credit card.

my credit utilization fall from 42% to 19%

from there my score has been falling.

this month has dropped 8 point more for 2 reason:

I spend $100 in one credit card and paid $50 extra in a credit card.

my credit utilization is now in 24%.

I can understand what I am doing wrong? Please someone can explaing me?

[tufa4311]

Well, before we get all into it, which score? FICO or Fako?

[ojefferyo]

Also the cards you have and balances/limit would help

[Anonymous]

FICO

* = new card / transfer balance

Amex *         $2,000.00 /$1,133.40

Best Buy      $3,000.00 /$601.35

Cap One       $750.00/ $100.00

Chase           $500.00/ $37.99

Discovery    $2,400.00 /$978.21

Jewel           $6,500.00 /$98.99

Mayc's         $3,000.00/ $379.62

NY&C           $900.00/ $34.32

Quick Silv*  $3,000.00 /$2,275.33

RC Willy      $1,500.00 /$0.00

Wal Mart      $1,400.00 /$777.42

[jamie123]

---

@Anonymous wrote:

FICO

* = new card / transfer balance

Amex *         $2,000.00 /$1,133.40

Best Buy      $3,000.00 /$601.35

Cap One       $750.00/ $100.00

Chase           $500.00/ $37.99

Discovery    $2,400.00 /$978.21

Jewel           $6,500.00 /$98.99

Mayc's         $3,000.00/ $379.62

NY&C           $900.00/ $34.32

Quick Silv*  $3,000.00 /$2,275.33 !!!!!!

RC Willy      $1,500.00 /$0.00

Wal Mart      $1,400.00 /$777.42

---

These are some of the reasons that your score dropped:

1. Adding the 2 new credit cards cost you some points with inquiries and being new accounts.

2. The 2 new credit cards dropped your average age of accounts. (AAoA)

3. For every card more than one that reports a balance you will lose 3 to 5 points.

4. Your reported balances are too high. I have highlighted in red 4 cards that are over 30% which will really knock your scores down. The Quick Silver is especially high at 76%.

What you need to do to raise your scores:

You need to get to the point where you have only one card report less than 10% of its credit line and all the other cards report $0. For every card that reports a $0 balance you will pick up at least 3 to 5 points.

You also need to get the high balance cards reporting less than 30%. You will pick up quite a few points as you pay them down.

Start by paying down the lowest balance cards first and work your way up to the higher balance cards.For less than $400 you can get 4 of your cards reporting $0 and will pick up at least 12 points.

[NRB525]

---

@jamie123 wrote:

---

@Anonymous wrote:

FICO

* = new card / transfer balance

Amex *         $2,000.00 /$1,133.40

Best Buy      $3,000.00 /$601.35

Cap One       $750.00/ $100.00

Chase           $500.00/ $37.99

Discovery    $2,400.00 /$978.21

Jewel           $6,500.00 /$98.99

Mayc's         $3,000.00/ $379.62

NY&C           $900.00/ $34.32

Quick Silv*  $3,000.00 /$2,275.33 !!!!!!

RC Willy      $1,500.00 /$0.00

Wal Mart      $1,400.00 /$777.42

---

These are some of the reasons that your score dropped:

1. Adding the 2 new credit cards cost you some points with inquiries and being new accounts.

2. The 2 new credit cards dropped your average age of accounts. (AAoA)

3. For every card more than one that reports a balance you will lose 3 to 5 points.

4. Your reported balances are too high. I have highlighted in red 4 cards that are over 30% which will really knock your scores down. The Quick Silver is especially high at 76%.

What you need to do to raise your scores:

You need to get to the point where you have only one card report less than 10% of its credit line and all the other cards report $0. For every card that reports a $0 balance you will pick up at least 3 to 5 points.

You also need to get the high balance cards reporting less than 30%. You will pick up quite a few points as you pay them down.

Start by paying down the lowest balance cards first and work your way up to the higher balance cards.For less than $400 you can get 4 of your cards reporting $0 and will pick up at least 12 points.

---

Source from the FICO model please? Seems too certain on one factor.

OP you said you consolidated balances on a lower rate 12% card. That's good because it lowers your interest cost, saves you money. As jamie points out, paying off lower balance cards will be a good idea, and by pay off I mean get to a point where if you use the card, you pay in full by the due date and pay no interest. Keep plugging away at the balances to get them down. Keeping them under 30% should be helpful.

And, over time, these score drops will come back as the new account inquiries fade, balances come down, and you continue to make payments on time.

[jamie123]

---

@NRB525 wrote:

---

@jamie123 wrote:

---

@Anonymous wrote:

FICO

* = new card / transfer balance

Amex *         $2,000.00 /$1,133.40

Best Buy      $3,000.00 /$601.35

Cap One       $750.00/ $100.00

Chase           $500.00/ $37.99

Discovery    $2,400.00 /$978.21

Jewel           $6,500.00 /$98.99

Mayc's         $3,000.00/ $379.62

NY&C           $900.00/ $34.32

Quick Silv*  $3,000.00 /$2,275.33 !!!!!!

RC Willy      $1,500.00 /$0.00

Wal Mart      $1,400.00 /$777.42

---

These are some of the reasons that your score dropped:

1. Adding the 2 new credit cards cost you some points with inquiries and being new accounts.

2. The 2 new credit cards dropped your average age of accounts. (AAoA)

3. For every card more than one that reports a balance you will lose 3 to 5 points.

4. Your reported balances are too high. I have highlighted in red 4 cards that are over 30% which will really knock your scores down. The Quick Silver is especially high at 76%.

What you need to do to raise your scores:

You need to get to the point where you have only one card report less than 10% of its credit line and all the other cards report $0. For every card that reports a $0 balance you will pick up at least 3 to 5 points.

You also need to get the high balance cards reporting less than 30%. You will pick up quite a few points as you pay them down.

Start by paying down the lowest balance cards first and work your way up to the higher balance cards.For less than $400 you can get 4 of your cards reporting $0 and will pick up at least 12 points.

---

Source from the FICO model please? Seems too certain on one factor.

OP you said you consolidated balances on a lower rate 12% card. That's good because it lowers your interest cost, saves you money. As jamie points out, paying off lower balance cards will be a good idea, and by pay off I mean get to a point where if you use the card, you pay in full by the due date and pay no interest. Keep plugging away at the balances to get them down. Keeping them under 30% should be helpful.

And, over time, these score drops will come back as the new account inquiries fade, balances come down, and you continue to make payments on time.

---

The FICO model doesn't discuss points at all. That's why we visit this forum. You can get pretty accurate advice from actual real life tests that have been performed by MyFICO members. I've personally tested the 3 to 5 point loss for every extra card that reports a balance more than one card and found this rule to be pretty accurate.

Are you disputing the accuracy of my advice or the fact that we shouldn't discuss points here at all because FICO doesn't give guidance on points? Are you inferring that we shouldn't discuss scores either because without a foundation of how points are earned and lost we really shouldn't discuss scores?

[Anonymous]

Thank you for your advice. I will follow them. I thought that the overall credit card utilization was more important for score my finances. Thank you again for your time.

[tonyjones]

---

@Anonymous wrote:

Thank you for your advice. I will follow them. I thought that the overall credit card utilization was more important for score my finances. Thank you again for your time.

---

Overall and Individual Credit Utilizations both play a role in FICO Scoring.