topic Why did my score drop with a CLI? in Understanding FICO® Scoring

Why did my score drop with a CLI?

js400021 — Fri, 11 Sep 2020 19:42:36 GMT

After a year and a half of credit rebuilding, I recently lost my mortgage approval because I paid off a loan early in the summer and instantly lost 10 points for that and then another 20 points just for paying a credit card down from $66 to 0. ( I think all cards reported as zero that month.) Since then, I've been watching my score drop slowly but steadily. Not by a lot but always a couple of points a week and it never comes back up. I have 4 cards, keep a zero balance on all except one and pay that one off every month after letting a small balance report. But to no avail. Today, I lost another 2 points because one of my credit cards increased my limit by $1000. I didn't ask for it, it was just automatically increased. I thought having a higher total credit limit increased scores? I certainly didn't expect to see another drop from this. Can anyone explain why this happened?

Re: Why did my score drop with a CLI?

blindambition — Fri, 11 Sep 2020 19:47:14 GMT

The CLI most likely coincided with another change. Check report line by line.

Its possible to lose points on closed loan. Was that your only installment loan?

You experienced the All Zero penalty. Continue AZEO.

Re: Why did my score drop with a CLI?

FireMedic1 — Fri, 11 Sep 2020 20:41:14 GMT

If that was your only loan. Theres the culprit. And never have all accounts report no balance or all cards report a balance. FICO dings you for it. If you can get in with NFCU and get an SSL. That will help.

Re: Why did my score drop with a CLI?

SouthJamaica — Sat, 12 Sep 2020 01:41:10 GMT

@js400021 wrote:
After a year and a half of credit rebuilding, I recently lost my mortgage approval because I paid off a loan early in the summer and instantly lost 10 points for that and then another 20 points just for paying a credit card down from $66 to 0. ( I think all cards reported as zero that month.) Since then, I've been watching my score drop slowly but steadily. Not by a lot but always a couple of points a week and it never comes back up. I have 4 cards, keep a zero balance on all except one and pay that one off every month after letting a small balance report. But to no avail. Today, I lost another 2 points because one of my credit cards increased my limit by $1000. I didn't ask for it, it was just automatically increased. I thought having a higher total credit limit increased scores? I certainly didn't expect to see another drop from this. Can anyone explain why this happened?

The increase in credit limit did not cause a score drop.

Re: Why did my score drop with a CLI?

Anonymous — Sat, 12 Sep 2020 01:45:58 GMT

The credit limit increase did not cause the score drop I second that. Likewise if you lost the points for reporting all zero you should’ve gotten them back the moment the card reported a balance.

Re: Why did my score drop with a CLI?

BmoreBull — Sat, 12 Sep 2020 23:45:35 GMT

Where are you getting your scores? Are they FICO or Vantage?

Re: Why did my score drop with a CLI?

js400021 — Sun, 13 Sep 2020 01:46:21 GMT

I'm getting my scores from Myfico.com. The notification just says "All Bankcard account(s) credit limit increased" -1 pt. and details the card that has the $1000 increase. Makes no sense that I was penalized for that. In answer to the other question, I do still have an open school loan and had this open when I paid off the second loan. I had read on here several times that it wouldn't drop if there was another open loan so I was pretty miffed when I saw that big drop. My school loan it small but still above 80%.

Re: Why did my score drop with a CLI?

Anonymous — Sun, 13 Sep 2020 02:43:28 GMT

The notifications are not necessarily connected to the score change.

If the other loan was paid down then paying it off increased your aggregate installment utilization and could’ve caused a score decrease.

at two points it's really too small to tell a lot of times

Re: Why did my score drop with a CLI?

Credit4Growth — Sun, 13 Sep 2020 04:16:30 GMT

@Anonymous wrote:
The notifications are not necessarily connected to the score change.

If the other loan was paid down then paying it off increased your aggregate installment utilization and could’ve caused a score decrease.

at two points it's really too small to tell a lot of times

@js400021 I agree with this.

I got hit with a score decrease after closing my SSL (15K loan with a 500+ balance). Open SLs (9 of them) are the only open loans remaining with individual utility of approximately 80 - 85% each. The SLs were appro

IMO, this was a big change in my aggregate installment utility.

I went form an aggregate loan utility of about 45% up to approximately 69% (23K owned on 48K to 22K owed on 33K)

Sadly, when seeking score increases one could expend a great deal of energy and time only to find out there is so much more to learn about Fico factors.

Re: Why did my score drop with a CLI?

Anonymous — Sun, 13 Sep 2020 04:21:54 GMT

Another classic MF Fail in score changes not being related to the provided alert reason, a problem that has been ongoing for years.

Re: Why did my score drop with a CLI?

blindambition — Mon, 14 Sep 2020 15:18:13 GMT

@Anonymous wrote:
Another classic MF Fail in score changes not being related to the provided alert reason, a problem that has been ongoing for years.

One of the main reasons I won't get a subscription!

Re: Why did my score drop with a CLI?

Girlzilla88 — Mon, 14 Sep 2020 15:34:57 GMT

@js400021 I do agree with everyone else here it has to be another but it does even note on MF that it can be a Multiple of things that update with that score change not just the one thing so even if you see a positive direction/change a different action can still drop your score. All things aside I do like my MF subscription XD

Re: Why did my score drop with a CLI?

Anonymous — Tue, 15 Sep 2020 03:21:09 GMT

@Girlzilla88 wrote:
I do agree with everyone else here it has to be another but it does even note on MF that it can be a Multiple of things that update with that score change not just the one thing so even if you see a positive direction/change a different action can still drop your score.

Whatever it says clearly doesn't get the point across and hasn't for years, as evidenced by this thread among literally hundreds of others. Members are misguided more often than not from the alerts from what I have seen. While you clearly get it, the majority doesn't.