Why did my score drop???

[Sitori]

I'm confused...

I was at a 695 EQ and 700 TU in November.  I opened an Amazon store card which is now at $2200 CL, a Discover $1700 CL and a Cap1 $1000 CL  all around October/November of last year. I had a First Premier card since July with a $300 CL.

I didn't max any of my cards out but I put a pretty big dent in them from the holidays. I have paid much more than the balance every month, and have paid multiple times a month since December to try and get the balances lower. I've always put a couple hundred dollars on each(no lower than 100).  There's a zero balance on the FP, a $250 on the Amazon, $900 on the Discover and $300 on the Cap 1.

Why would my EQ score drop 55 points???? 

I haven't even looked at my TU score yet but now I'm terrified.

I need to apply for Care Credit SOON!! Now I'm afraid I won't get approved, or I'll get a small CL.

Is there anyway I can get my score back up quick? I don't understand why it would drop so much when I've  never been late or missed a payment and am constantly paying on all the CC's.

Any advice would be appreciated.  =)

Thanks

[Sitori]

Sorry ...Meant to say my EQ went from a 695-640. I just got the score watch and it's showing it as a 640. 

I"m so bummed.  Isn't having credit supposed to help you??? When I had NOTHING my score was higher. I don't get it.  

[E150GT]

your utilization is high. Why do you "need" to apply to care credit? Your score will rebound whent the balances are paid down more than they are. 

[HoldingOntoHope]

The combination of the fairly new accounts and the utilization is most likely dropping your score. It is fairly well documented by experience around here that FICO scoring likes to see total utilization of less than 10%. The optimum seems to be a zero balance on all but one card and that one card reporting a balance of 1 - 9% of its credit limit. At the least you need to have more than 1/2 of your accounts reporting a zero balance for a score boost.

The good news is FICO scoring has no memory when it comes utilization so as soon as you can get the lowered / zero balances reporting the sooner you will see a score increase. You can use your cards all you want in a month. You just need to pay off the balance a day or two before the statement date and not add any new charges until after the statement date.

The other good news is Care Credit has some pretty liberal standards and you may get the credit you need anyway especially if you are applying through a provider instead of on your own.

[zerobacan]

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@E150GT wrote:

your utilization is high. Why do you "need" to apply to care credit? Your score will rebound whent the balances are paid down more than they are. 

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+1 on utilization being high + as I see 3 new account compared the only 1 old you had before brought your Average of credit down too fast

Care Credit = High interests!

[Sitori]

So paying them down to below 10% is really the only thing that will make a change?

If I pay off the Cap1 and the Amazon and only have a balance on the Discover would that help? I dont think I'll be able to pay them all off right now and my dental work can't wait that much longer.

I was denied Care Credit back in August so I'm hoping having this credit history will make a difference but now that my scores have dropped I'm not so sure anymore.

[Anonymous]

I wouldn't carry a balance unless you absolutely have to. Like the others have mentioned the utilization and drop in AAOA is what is hurting you. You'll bounce back up once you pay down your credit cards.

[E150GT]

low balances and time will heal a score and make it better actually. lower balances will help in the short time though.

[Sitori]

How long do they view an account as being "new"

[Sitori]

I guess I did everything backwards then. I waited to apply for the care credit so that I would have a more credit history and get approved.  I guess I should have applied for it when I went on my little app spree in November.  Dangit