topic Re: Why Does My Score Keep Dropping? in Understanding FICO® Scoring

Why Does My Score Keep Dropping?

Queen_Etherea — Tue, 13 Nov 2018 15:19:10 GMT

Hello Everyone!

So my scores have been slowly going up since I started my rebuild. Lately, though, it seems my scores just keep trickling down. I lost 6 points last week and then 6 points today. I have a subscription through Experian, so it updates my EX scores daily.

Before today, it shows 3 ups (helping) and 3 downs (hurting) for my scores. Now, it's showing 2 ups and 4 downs. It used to say that my accounts didn't show any serious delinquency in the past 90 days, and now it's saying that few of my accounts are in good standing. I checked every single one my accounts and they all show current/paid on time as agreed. Then I check the reaons why my scores are dropping and it says only 3 out of 11 of my accounts are in good standing.

I literally have no missed payments except for a 30 day late from 2015. I was able to goodwill this late, but it hasn't updated on any reports yet. The guy I emailed said it would probably take a while since they haven't updated anything on my account for the past 3 1/2 years. I check all my accounts every single morning with my coffee before I get ready for work. There's no way I could have missed any payments. I have autopay on all my accounts, but I still make the monthly payments manually because I always PIF.

Also, my overall UTI is 15%. AMEX did report my new account last Friday and posted a balance of $216/$500 even though I paid the whole thing off a couple of days beforehand. Could this be the reason for the drop? Why would it say that only 3 of my accounts are in good standing? Why wouldn't it update my score on Friday if that was the case? Ugh I hate this credit stuff.

I'll post any more info you guys may need.

Re: Why Does My Score Keep Dropping?

Anonymous — Tue, 13 Nov 2018 15:27:55 GMT

The reporting of a new account means an AAoA drop as well as a AoYA drop to 0 months. Those factors alone can impact scores 6 points easily and up to 20 points or more in some cases. It also sounds like your new account reported at 40-something percent utilization. If you don't have any other revolvers at utilization that high, you're receiving a ding for that being your highest utilization individual account. Typically this ding (for landing in the 28.9% - 48.9% range) is around 4-6 points.

As for your accounts in good standing, it sounds like the front-end CMS software is seeing something somewhere. I'd suggest obtaining a copy of your real (hard copy) credit reports so that you can go through them line by line. There may be things on your real reports that aren't visible on your CMS provided reports.

Re: Why Does My Score Keep Dropping?

Queen_Etherea — Tue, 13 Nov 2018 15:37:46 GMT

@Anonymous wrote:
The reporting of a new account means an AAoA drop as well as a AoYA drop to 0 months. Those factors alone can impact scores 6 points easily and up to 20 points or more in some cases. It also sounds like your new account reported at 40-something percent utilization. If you don't have any other revolvers at utilization that high, you're receiving a ding for that being your highest utilization individual account. Typically this ding (for landing in the 28.9% - 48.9% range) is around 4-6 points.

As for your accounts in good standing, it sounds like the front-end CMS software is seeing something somewhere. I'd suggest obtaining a copy of your real (hard copy) credit reports so that you can go through them line by line. There may be things on your real reports that aren't visible on your CMS provided reports.

I'm thinking that number 3 may be the accounts that have high utilization. AMEX reported that high balance (44%), then my PenFed gold card is at 30% (which shows red on the report) and my CareCredit is at 50%. All three accounts are showing red for the UTI so maybe I just misunderstood what the 3 accounts thing meant.

Re: Why Does My Score Keep Dropping?

RonM21 — Tue, 13 Nov 2018 15:51:30 GMT

Even with that said, if your utilization drops, you will likely see an uptick in your scores. For starters, you said Amex reported a balance that you paid off. So, in theory, that would report a zero balance next month, and you may even come down on the balance of another card. In that situation, assuming nothing else changes, you could gain some points.

Re: Why Does My Score Keep Dropping?

Queen_Etherea — Tue, 13 Nov 2018 16:23:14 GMT

@RonM21 wrote:
Even with that said, if your utilization drops, you will likely see an uptick in your scores. For starters, you said Amex reported a balance that you paid off. So, in theory, that would report a zero balance next month, and you may even come down on the balance of another card. In that situation, assuming nothing else changes, you could gain some points.

I hope so. My CareCredit will be paid off by the next reporting date, and the AMEX will be as well. The PenFed one will be down to below 30%.

Re: Why Does My Score Keep Dropping?

Queen_Etherea — Tue, 13 Nov 2018 16:32:42 GMT

Good news is my Wells Fargo FICO 09 score reported 705! My first ever score over 700!!