topic Unexplained drop in credit in Understanding FICO® Scoring

Unexplained drop in credit

Anonymous — Wed, 28 Aug 2013 14:50:10 GMT

My Transunion dropped from 668 to 650, from last month, and for the life of me, and I can't explain this drop. MyFICO reports that the 'Total Amounts Owed' was in the VERY GOOD category for last month, but the 'Total Amounts Owed' is being report in the GOOD, category for this month. However, when I compare my accounts for last month and this month, I actually owe a few hundred dollars less, this month ($77,654 VS $77,205). There is no new information regarding inquiries or collections. My goal has been to bump my score to as close to 700, by the end of the year, to get a mortgage. I've already increased about 100 points since last year. Can anyone please give me an idea, as to what can account for this (significant) 18 point drop?

Re: Unexplained drop in credit

Anonymous — Wed, 28 Aug 2013 17:26:07 GMT

Welcome to the forums.

Did you have any new accounts reported?

Re: Unexplained drop in credit

Anonymous — Wed, 28 Aug 2013 17:44:03 GMT

No. The only thing I can think of is that my Credit card limit is that my balance on my pre-paid credit card balance was $24 last month, and it is $56 this month. My limit on the card is $300, so perhaps the larger ratio of $56/$300 is what can explain the difference. It may seem like a small amount of money to owe, but the difference in percentage of credit utilization is 8% vs 18% .

Re: Unexplained drop in credit

Anonymous — Wed, 28 Aug 2013 19:04:44 GMT

That could do it yes.