topic Re: Credit Score dropping daily..:-( in Understanding FICO® Scoring

Credit Score dropping daily..:-(

Anonymous — Mon, 24 Dec 2018 23:59:59 GMT

Hello - Cheers and Joy today!

I need some advise. I have combed through the boards but still need some direct advice pertaining to my credit card utilization situation.

Went on a Transunion Application Spree (i guess) in the last 5 weeks, I needed more cards, need a vehicle for by business also..

The results of this was:

* Barclay Uber - SL $500 / $0 balance

* Care Credit - SL $9k / $0 balance

* Overstock - SL $2450 / $673 balance ( month 1, missed cutoff before card reported_I know the dates now)

* Barclay Arrival plus - Approved (waiting on CL) had to send Barclay identification docs, got a verbal that it was approved from reps

* Chase Mazda Capital Services - $27,500

Existing cards are:

1) AU - Chase Sapphire - CL was $12k - recently reduced to $10,100_due to random decision from Mom's dropped scores due to high utilization_EX dropp of 8points,

this account does not affect my FICO score - tested.

2) Bank of America Americard Secured - $1100 / $0 balance

Every day or so I recieve notes from FICO as follows:

DECEMEBER 23

+0_ 674 Equifax: The balance on one of your accounts has decreased by $96 ( this was Barclay, I payed it off to $0 but used it again before the reporting date)

-3_ 617 Experian: The balance on one of your accounts has decreased by $96

-6_ 699 Transunion: The total balance on all yur Bankcard account(s) has decreased by $96

-6_ 699 Transunion: Your FICO score had decreased from 705 to 699

Oh - FICO says that my total revolving credit utilizaition is 89%_this derives from the Chase AU - should I remove myself from this card? This will be paid off by February. I've been on this card since 11/2016. My Secured BofA has been open since 2015.

drop of 8 points Experian

drop of 7 points Transunion

Based on what I am experiencing - each bureau appears to have different measures of determining score reward or punishment.. for lack of better words.

Based on what I shared - can you please share the general mindset I should adopt. My goal is to improve my score, I would like to purchase a home by july 2019.

I truly appreciate your time and attention towards my situation!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 01:04:55 GMT

Since you are applying for a mortgage in 6 month, do not apply for anything else. IMO, you have your own credit now. The 2 years as an AU has helped get you to where you are now. If the Chase card is paid off in Feb, how do you know that it won't be ran up again when you go to get a mortgage? It would be my guess that high UTI has been maintained on this or other cards for an extended period. A CLD is not a good sign.

87% UTI is really killing you and it would be an easy choice for me to drop it. You have an installment loan and enough cards so overall you are going to be in good shape going ahead. Why is your EX so much lower than the other bureaus? What is on there that is not on the other bureaus?

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 01:51:21 GMT

I'd definitely drop the AU card.

Taking down aggregate utilization from 87% to a single-digit percentage is going to be worth something in the ballpark of 50-75 points on your FICO scores. That's huge and thus positioning your utilization in an ideal place should be Priority #1 in terms of score improvement. You also should not apply for anything else at all until the time comes for that mortgage app.

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 02:14:24 GMT

What is the Date Opened of the AU card?

What is the Date Opened of the oldest account in your name? (I.e. not including the AU card)

For both of those questions I am talking about how the Date Opened field reads on your actual credit reports. I am not asking how long you have been an AU or when the original card was opened or anything like that. I am asking about how a specific field reads on the report itself. Once we know the answer to these questions we can advise you better about whether you should get removed as an AU.

PS. If you were to keep the AU account, can you confirm that there are no lates associated with it? And that the owner of the card would be willing to keep it reporting $0 between March and August (or until you own your new house)?

Re: Credit Score dropping daily..:-(

SouthJamaica — Tue, 25 Dec 2018 03:55:58 GMT

@Anonymous wrote:
Hello - Cheers and Joy today!

I need some advise. I have combed through the boards but still need some direct advice pertaining to my credit card utilization situation.

Went on a Transunion Application Spree (i guess) in the last 5 weeks, I needed more cards, need a vehicle for by business also..
The results of this was:
* Barclay Uber - SL $500 / $0 balance
* Care Credit - SL $9k / $0 balance
* Overstock - SL $2450 / $673 balance ( month 1, missed cutoff before card reported_I know the dates now)
* Barclay Arrival plus - Approved (waiting on CL) had to send Barclay identification docs, got a verbal that it was approved from reps
* Chase Mazda Capital Services - $27,500

Existing cards are:
1) AU - Chase Sapphire - CL was $12k - recently reduced to $10,100_due to random decision from Mom's dropped scores due to high utilization_EX dropp of 8points,
this account does not affect my FICO score - tested.
2) Bank of America Americard Secured - $1100 / $0 balance

Every day or so I recieve notes from FICO as follows:
DECEMEBER 23
+0_ 674 Equifax: The balance on one of your accounts has decreased by $96 ( this was Barclay, I payed it off to $0 but used it again before the reporting date)

-3_ 617 Experian: The balance on one of your accounts has decreased by $96

-6_ 699 Transunion: The total balance on all yur Bankcard account(s) has decreased by $96
-6_ 699 Transunion: Your FICO score had decreased from 705 to 699

Oh - FICO says that my total revolving credit utilizaition is 89%_this derives from the Chase AU - should I remove myself from this card? This will be paid off by February. I've been on this card since 11/2016. My Secured BofA has been open since 2015.
drop of 8 points Experian
drop of 7 points Transunion

Based on what I am experiencing - each bureau appears to have different measures of determining score reward or punishment.. for lack of better words.

Based on what I shared - can you please share the general mindset I should adopt. My goal is to improve my score, I would like to purchase a home by july 2019.

I truly appreciate your time and attention towards my situation!

1. Disregard the score changes in the "notes"; they are confusing you. MyFICO alerts don't provide reasons for a score change. There are certain events which trigger MyFICO alerts. If there happens to be any difference between your present score at that particular bureau and the previous score reported to you from that bureau, the score change is tacked on to the alert. There is not necessarily any connection at all between the score change and the alert substance.

2. Get off the authorized user account.

3. Pay your revolving accounts in full each month.

4. When you get within 3 months of the mortgage application, start maintaining your revolving accounts so that one reports a small balance, while the others report a zero balance.

5. As @Anonymous and @Anonymous have pointed out, do not apply for any new credit.

Re: Credit Score dropping daily..:-(

NRB525 — Tue, 25 Dec 2018 05:51:58 GMT

As CGID notes, it is important to get a clear perspective on what your age of accounts is, and what age the AU source card has. Also specifically confirmation that there are no lates on the AU source card.

Once that is known, more recommendations make sense.

You should not apply for new accounts. That much is clear.

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 15:37:37 GMT

Without knowing any of the OPs age of accounts factors, I'd say in most situations the potential benefit being received by the AU account at this point is less than the drawback. I've always seen AU accounts as a plus when someone is A - starting out their credit life and has a thin file or B - the AU account has very low utilization. Neither is the case for the OP at this point, as they have 5+ of their own accounts at least several of which are with major banks and the AU account is at 87% utilization.

If the OP gardens for a year or so having taken on this handful of new accounts and drops the AU account, I see the chances of them being denied for credit based on short credit history a year from now being very slim.

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:07:36 GMT

Hello Overmedicated,

Thank you for your feedback - much appreciated.

I have full possession of this card and will be paying this off personally, Mommy needed unexpected dental care. This account has EXCELLENT payment record. no lates ever.

I have a collection of $158 and a CO shown on Experian that is NOT shown on the other bureaus...

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:14:20 GMT

Hello - and thank you!

Oh wow... talk about Xmas cheer..Defintely encouraging. I tried to remove the AU online Via Chase.com but it states that I need to call. I will not apply for anything else. I am curious to see what my SL will be on the Barclay Arrival Plus!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:36:07 GMT

As NRB and I have mentioned, we believe the advice to remove himself as an AU is premature.

At this point, it's quite possible that the AU account is 30 years old and the oldest account of his own is 4 months old. (To give an extreme example.) If so, being removed as an AU would be a very bad choice.

Remember too what the goal of our OP is, which is to buy a home. AU accounts count 100% in the old FICO models that the mortgage lenders use.

Greenhat, could you scroll back and look at the advice I gave you about pulling your reports and telling us what the report says that the Dated Opened is for your AU account and your other accounts? It might be simplest if you list each account with the Date Opened as that field reads on the actual report. That's not the same as when you were added as an AU or when you believe the account was really opened -- what matters is what the report says.

If you are unsure how to pull your reports to get this info, let us know, and we can walk you through how to use free tools to pull your full reports.

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:38:42 GMT

Hello!

The Credit card was opened on 12/14/16 - no lates, perfect payment history

The Oldest Account on my CR is B of A Secured BankAmericard Visa Platinum, opened 11/2/2015, 2 lates - last late 9/17 (simply forgot to pay- smh)

I am in possession of the AU card and can ensure that no further charges will be made should I decide to stay on account.

Thank you!!!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:41:40 GMT

Yes, i will not apply for any other accounts. I have a good mix to build from at this point.

no lates on the AU - perfect payment history. Opened 12/16

Thank you!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 17:45:35 GMT

Hello - can you provide the information to pull reports please? Thank you CGID!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 18:14:00 GMT

My comments in blue below.

@Anonymous wrote:

Hello!
The Credit card was opened on 12/14/16 - no lates, perfect payment history

By "the credit card" you mean the card on which you are an AU -- is that right? You have a number of credit cards, so we need to be sure that we know which card you are talking about.

Also, when you say that the card was opened on 12/16, is that what your report says? Again, it is really important to drill into your three reports and see what they say. That's what matters.

The Oldest Account on my CR is B of A Secured BankAmericard Visa Platinum, opened 11/2/2015, 2 lates - last late 9/17 (simply forgot to pay- smh)

I am in possession of the AU card and can ensure that no further charges will be made should I decide to stay on account.

Thank you!!!

In what follows, I will assume that the AU card was opened 12/16, that you have an older account of your own, and that your reports also reflect these dates.

If that is true, I see no problem with getting removed as an AU. The central way an AU account helps a person is in the event that the AU account is far older than the oldest account in his name. In your case, the AU account is actually younger.

Of course, it sounds like you have debt on that card that needs to be paid off, so you should still monitor that to see that it happens by the Feb timeline, just in your capacity as being an ethical child of a parent.

Before we leave the subject of AUs, you might want to see whether you know of a person who has a very old card that is completely clean and could be kept reporting at a zero balance. Being added as an AU to THAT card could help you out a lot.

The other stuff you need to do is what the other folks have advised you to do, notably stop applying for new accounts and pay off off all all cards, and then move forward by keeping all cards at $0 except one. If you have any cards that have not been used at all for sometime, you should use them fairly soon for a small purchase (make it something you genuinely want or need). Cards need to be used once every six months to protect them from being closed due to inactivity.

While you are working on that, it is crucial to begin working on a strategy to get as many derogs deleted from your reports as possible. BBS knows quite a bit about that. One strategy you will hear about is "Goodwill Letters." Before you engage in those get the high utilization AU removed from your report. And you can begin exploring a Pay For Delete strategy with any and all collections.

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 18:25:19 GMT

@Anonymous wrote:
Hello - can you provide the information to pull reports please? Thank you CGID!

I would start by going to AnnualCreditReport.com and pulling all three reports from them. ACR is the gold standard for reports.

After that, you can use a free service like Credit Karma to pull your EQ and TU reports once a week. CreditScore.com will give you your EX report once per month. Ignore any advice that these services give you and also ignore what their front-end "summary" page says. (Also ignore Karma's scores.) Use them to print out your full report each month (oftener if you like with Karma) and then look to see if the changes to your reports are happening the way you want. (New accounts appearing, CC balances going down, being removed as an AU, derogs being removed, etc.)

If you are a resident of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey or Vermont you can get even more free reports:

https://www.creditcards.com/credit-card-news/7-states-where-residents-get-extra-free-credit-report-1282.php

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 18:28:39 GMT

After you have made a good bit of progress in cleaning up your reports (this may take you at least six weeks, likely longer) you should purchase a subscription for the myFICO Ultimate credit monitoring service (CMS). Choose the $40/month option. That will give you your mortgage scores, which are different from your FICO 8 scores and very different from your Vantage Scores (the ones you would see at Karma, which as I have mentioned you should ignore).

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 18:52:54 GMT

This is really prescription for my go forward plan. I will order the credit reports, I am very curious to see all detailed reports. Will my BofA account hold me up considering I had 2 late payments? I am sure this is hurting my score as it is often mention as "a factor the is hurting your score" on MyFICO and seen on Credit Karma.

I really appreciate the feedback - huge help!

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 18:58:10 GMT

@Anonymous wrote:
After you have made a good bit of progress in cleaning up your reports (this may take you at least six weeks, likely longer) you should purchase a subscription for the myFICO Ultimate credit monitoring service (CMS). Choose the $40/month option. That will give you your mortgage scores, which are different from your FICO 8 scores and very different from your Vantage Scores (the ones you would see at Karma, which as I have mentioned you should ignore).

I own a subscription for the Ultimate monitoring service! I see the Mortage scores..

FICO SCORE 5,4 & 2 are: EQ 645 / TU 697 / EX 611

Re: Credit Score dropping daily..:-(

Anonymous — Tue, 25 Dec 2018 23:17:02 GMT

I agree with CGID and based on the information provided in the above posts feel that ditching the AU account is in the best interest of the OP.

Re: Credit Score dropping daily..:-(

Anonymous — Fri, 28 Dec 2018 13:46:28 GMT

It may seem counterintuitive but, never pay off your cards to ZERO balances OR have your cards idling at zero balances--at least for over 4 month period. If you are applying for a mortgage make sure none of your revolving credit lines go over 1-5 % credit utilization. These mortgage companies do rescoring--From past experience they're generally on-the-money. Since you're going to be applying for a mortgage soon: make sure there are no open DISPUTES on your file and keep $1.00 balance on all cards just around the time when the lender is going to do a hard pull. I got a 30-point boost when I was trying to do a refinance with Quicken.