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tetazoo
Posts: 2
Registered: ‎06-27-2013
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Why did my score drop after improving utilization?

So, I found out that my credit score with TransUnion was 681 and much of that was due to my 102% utilization.  I paid off one of my cards and got my utilization down to 37%.  I actually paid off both, but waiting for the next statement on the other card.  Anyway, my score dropped 36 points down to 645.  Nothing else has changed other than mortgage and car have a tiny bit more principal paid on them.

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guiness56
Posts: 22,406
Registered: ‎01-17-2008
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Re: Why did my score drop after improving utilization?

New Member
Cavifl45
Posts: 2
Registered: ‎06-27-2013
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Re: Why did my score drop after improving utilization?

maybe you have to give it another month to reflect on you credit


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thom02099
Posts: 1,350
Registered: ‎08-30-2011
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Re: Why did my score drop after improving utilization?

[ Edited ]

tetazoo wrote:

So, I found out that my credit score with TransUnion was 681 and much of that was due to my 102% utilization.  I paid off one of my cards and got my utilization down to 37%.  I actually paid off both, but waiting for the next statement on the other card.  Anyway, my score dropped 36 points down to 645.  Nothing else has changed other than mortgage and car have a tiny bit more principal paid on them.


What's the source?  You didn't indicate if this is a FICO score or from some other source, such as the TU site (a FAKO score), Credit Karma (also a FAKO score), or some other source. 

 

All things being equal, dropping util should result in a score increase.  However, it could take a cycle or 2 to fully see the complete results.  Paying off "one of the cards" and getting "utilization down to 37%" would indicate you have multiple cards at play here.  Depends on when their statement/reporting cycles are, as to when you'd see results.

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New Member
tetazoo
Posts: 2
Registered: ‎06-27-2013
0

Re: Why did my score drop after improving utilization?

It was my TransUnion score from Credit Karma.  The other credit card getting paid off should be reflected any day now, so I'm not sure if that means my score will drop even more or what.  BTW, I'm keeping my balances low, but non-zero and, since my original post, I have gotten a credit limit increase from $800 to $2400 and verified with AmEx that it was only a soft pull from their regular monitoring, not a hard pull.  Waiting to see the results of that as well.  Maybe three good things will drop my score by three times as many points?


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