topic Re: Credit score dropped twenty points! in Understanding FICO® Scoring

Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 03:04:38 GMT

My bankruptcy hit the eight year mark this week. My Amex fico score was 724 now it’s 704. Absolutely nothing changed. I have 0% utilization. Nothing closed or dropped off. My credit score hadn’t moved in six months. Didn’t apply for anything so I can’t understsnd why it would drop so drastically.. help!!! I’ve worked so hard.

Re: Credit score dropped twenty points!

2GreenThumbs — Wed, 20 Mar 2019 03:41:48 GMT

@Anonymous wrote:
My bankruptcy hit the eight year mark this week. My Amex fico score was 724 now it’s 704. Absolutely nothing changed. I have 0% utilization. Nothing closed or dropped off. My credit score hadn’t moved in six months. Didn’t apply for anything so I can’t understsnd why it would drop so drastically.. help!!! I’ve worked so hard.

I'm by no means an expert, but I've been learning from these forums for the past 2.5 years. From what I understand, you will take a hit for 0% util. I think the magic number is 8.9% utilization. You have to show that you're using your credit responsibly. Showing 0% looks like you're not using it at all.

Re: Credit score dropped twenty points!

SouthJamaica — Wed, 20 Mar 2019 04:24:51 GMT

@Anonymous wrote:
My bankruptcy hit the eight year mark this week. My Amex fico score was 724 now it’s 704. Absolutely nothing changed. I have 0% utilization. Nothing closed or dropped off. My credit score hadn’t moved in six months. Didn’t apply for anything so I can’t understsnd why it would drop so drastically.. help!!! I’ve worked so hard.

1. I can assure you something has changed.

2. Can you tell us more about your profile so we can help you figure it out.

E.g., # revolving accounts, limits, balances reported

# installment accounts, original loan amounts, current balances

3. Are you actually able to compare your before & after credit reports, which is the only way to find out what changed.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 04:44:03 GMT

@2GreenThumbs wrote:
I'm by no means an expert, but I've been learning from these forums for the past 2.5 years. From what I understand, you will take a hit for 0% util. I think the magic number is 8.9% utilization. You have to show that you're using your credit responsibly. Showing 0% looks like you're not using it at all.

But if his before/after utilization here was 0%, that factor would not have dropped his score, as he would have already been realizing the "no revolving credit use" penalty with his first provided score.

SJ is 100% correct that something else changed.

With the limited information provided, my guess would be that something less obvious happened, like an old account falling off that lowered AAoA and possibly AoOA here.

Re: Credit score dropped twenty points!

expatCanuck — Wed, 20 Mar 2019 07:15:41 GMT

One other point -- Amex has been playing 'musical scores' lately, showing a FICO score (buried in menus) and some other score displayed up front that I've ignored. We're for sure talking the FICO score, yes?

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 10:02:06 GMT

Thank you for helping. This is an actual Fico score from AmEx which is through Experian. I also use credit Karma andcit has not alerted me that anything changed. I do understand that it’s not Experian though. I have 0% utilization. Mortgage and car loan two years old each. Never late.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 12:16:30 GMT

Not everything that can affect your score is set up to trigger an alert. There is something buried in there that hit your account and caused the score change. Unfortunately only some of those things will alert you through the site monitors.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 12:30:56 GMT

@Anonymous wrote:
Not everything that can affect your score is set up to trigger an alert. There is something buried in there that hit your account and caused the score change. Unfortunately only some of those things will alert you through the site monitors.

Or, something that was removed (not necessarily added) to his CR.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 14:29:29 GMT

I contacted Experian. Seems as though two old accounts fell off so it lowered my score ten points each. She said I have another falling off in June so I’ll get hit again I’m sure. I do have three hard hits falling off in May. Will that offset my next account falling off. She said they fall off every ten years.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 14:32:59 GMT

What are the derogs that are falling off in May? And what will be your AoOA once the final one falls off in June? (What’s the total age of that account too?)

Knowing this, we may be able to give you a guess at how it will shake out but it won’t be more than an estimate, since scoring is dependent on one’s total profile.

Re: Credit score dropped twenty points!

HeavenOhio — Wed, 20 Mar 2019 14:42:53 GMT

Welcome, @Anonymous.

What was your age of oldest account (AoOA) before the two accounts dropped? And what is it now? And will the account that drops off in a couple of months affect AoOA?

Age thresholds are really hard to pinpoint. If you'd like to list all of your accounts along with the date opened, including the two that recently dropped off, we might be able to hazard a guess.

The bottom line is not to panic. You know where the score changes are coming from. This is something that happens from time to time. Your scores will bounce back.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 14:46:07 GMT

The hard inquiries that are falling off in May are three inquiries from my mortgage refi. I also have a hard inquiry falling off in July for my Amex card. The old account falling off in June is a closed credit card from ten years ago. My current credit age according to Credit Karma is 4.5 years. I’m not sure what AoOA means. I’m a newbie. Sorry! Lol. Btw....thank you for helping. I’m super sad it went down so much!

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 14:58:46 GMT

These are my open accounts
Cc1 7 years five months
Cc2 six years eight months
Cc3 4 years 1 month
Cc4 3 years
Cc5 1 year 8 months
Car two years five months
Mortgage 1 year 9 months

Closed accounts
Two that dropped off were ten years
One dropping off in June will be ten years
2012 car
2013 car
2013 cc
2011 cc
2005 line of credit

Re: Credit score dropped twenty points!

SouthJamaica — Wed, 20 Mar 2019 16:05:57 GMT

@Anonymous wrote:
The hard inquiries that are falling off in May are three inquiries from my mortgage refi. I also have a hard inquiry falling off in July for my Amex card. The old account falling off in June is a closed credit card from ten years ago. My current credit age according to Credit Karma is 4.5 years. I’m not sure what AoOA means. I’m a newbie. Sorry! Lol. Btw....thank you for helping. I’m super sad it went down so much!

1. Average age of accounts is computed differently by Vantage 3.0, so disregard the average age of accounts on Credit Karma.

2. AoOA is Age of Oldest Account, which is a separate scoring factor distinct from AAoA (average age of accounts).

3. Don't be super sad, because time heals all of these wounds.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 16:32:41 GMT

@Anonymous wrote:
I contacted Experian. Seems as though two old accounts fell off so it lowered my score ten points each. She said I have another falling off in June so I’ll get hit again I’m sure. I do have three hard hits falling off in May. Will that offset my next account falling off. She said they fall off every ten years.

I had a feeling it was due to an old account(s) falling off.

Keep in mind just because you lost 20 points for 2 accounts falling off that it doesn't mean you lost "10 points each" nor does it mean you'll lose another 10 points if another falls off in June. Score drops related to age of accounts factors happen when age thresholds are crossed. It's completely possible that all 20 points you lost were from just 1 (maybe the oldest) account that dropped off and that you lost 0 for the other. I just don't want you to think that each account is "worth" 10 points, thus figuring the next one means a 10 point drop.

As for your inquiries coming off, if they are reaching the 2 year mark it means they're already unscoreable (that happens after 1 year) and that you wouldn't expect to see any score gain once they actually vanish from your CR.

Re: Credit score dropped twenty points!

Anonymous — Wed, 20 Mar 2019 16:47:50 GMT

Thank you so much everyone! You are all so helpful! Much appreciated!!!!