topic Re: dropped 41 points!!! in General Credit Topics

dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 02:57:27 GMT

My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Re: dropped 41 points!!!

Luscher — Tue, 04 Nov 2014 03:02:47 GMT

When did the drop occur? When both account reported? You will take 1 hit from the first hp, then another hit from the second hp for the second account. then 1 hit for new account report and another hit for the second account reporting. This is only temporary and in time, your score will boost back up

Re: dropped 41 points!!!

Ghoshida — Tue, 04 Nov 2014 03:03:31 GMT

@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Do you have any other baddies reporting? The initial hit may be because of inquiries and new accounts, but with time passing and good payments, the good history will overtake the inquiries and your scores will grow.

Re: dropped 41 points!!!

JoshNurse — Tue, 04 Nov 2014 03:03:55 GMT

@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!

Any baddies on your report? Late payments etc..?

Re: dropped 41 points!!!

JoshNurse — Tue, 04 Nov 2014 03:05:47 GMT

@JoshNurse wrote:
@Anonymous wrote:
My score was 625. I am trying to increase my score so I can purchase my first home by the end of next year. I was told to open 2 credit cards, try to keep utilization below 30% Well, one credit card has limit of $300 and the other is $250 (whoah! I know.. hey, I gotta start somewhere) Well the $300 one I used up to $80 and I already paid that off before it even reported. The $250 one, I used $80 also but paid that balance down to $30 (because I was told to pay one off all the way and have a very small balance with the second card). Well, I just checked my score and I took a 41 point hit!!! What the heck! Is this normal? When is it going to go up? I feel so discouraged now. I feel like I should have not gotten a credit card and just left in alone at 625. Please, any advice would be greatly appreciated!
Any baddies on your report? Late payments etc..?

This may seem terrible but now I feel much better and less stressed. Credit Score 770-782 on all 3. I was worried about getting ahome loan. All I need to do is finish paying my car in 1 year and after that n payments. I will hopefully get a home then if possible. Unless I lose my job and some emergencys happen...

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:09:13 GMT

This is completely normal. Also for the record you want below 10% of your cards utilization and total utilization. In about six months you should have your points back with more.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:09:50 GMT

Yes, they just reported for the first time. My credit has been the same for years. I just haven't done anything to try to improve it till now. I just feel discouraged now. At lease everyone is telling me that its temperary. Thanks for your response.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:12:21 GMT

I do have 1 baddie that was from 2 years ago- my student loan. I had a few late payments. I have been paying on time since then- auto pay. I hope your'e right that this is just the initial hit. I literally just got both cards in October. I was always too scared to even apply for anything.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:15:11 GMT

Wow... Well, glad that my not so great situation makes you feel much better about yourself. At least I accomplished something right...

Re: dropped 41 points!!!

JoshNurse — Tue, 04 Nov 2014 03:16:39 GMT

@Anonymous wrote:
I do have 1 baddie that was from 2 years ago- my student loan. I had a few late payments. I have been paying on time since then- auto pay. I hope your'e right that this is just the initial hit. I literally just got both cards in October. I was always too scared to even apply for anything.

Did you get a capital one? They are the ones that helped me get to where i am now.

Re: dropped 41 points!!!

JoshNurse — Tue, 04 Nov 2014 03:16:57 GMT

@Anonymous wrote:
Wow... Well, glad that my not so great situation makes you feel much better about yourself. At least I accomplished something right...

Ignore me im just a troll passing by

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:18:10 GMT

10 %... ok, I can do that. I don't need the credit cards and as of last month, I opened up a savings account and have already put away $1,700. My goal is to save enough for 20% down on a house by the end of next year. My bills and expenses are very minimal, so I am able to save the majority of my pay check. Don't have car payment because I purchased my car cash.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:20:09 GMT

yes, I have a Capital One card. I also just looked at Credit Karma and it says Vantage Score went up 56 points but TransUnion went down 41 points... what is the difference?

Re: dropped 41 points!!!

JoshNurse — Tue, 04 Nov 2014 03:26:32 GMT

@Anonymous wrote:
yes, I have a Capital One card. I also just looked at Credit Karma and it says Vantage Score went up 56 points but TransUnion went down 41 points... what is the difference?

Ignore the Vantage Score. If you can afford it get the $14.95 monthly MyFico plan. You can get your actual credit report and also score.

The drop is temporary and will go back up. Keep using your card at about 9% utilization. Pay it off every month for about 6 months and you will see a boost.

DOe syour mom or dad have a high credit limit card that has 0 balance on it? Ask them to add you as a card holder to get some credit.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:28:37 GMT

The vantage score rate you on loanability rather than credit worthiness in my opinion. In written terms it's a unified score taken from all three credit bureaus to compete with fico to help people. My vantage score is poor while my fico are top notch. I greatly dislike vantage.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:39:37 GMT

I will look into the MyFico plan. Yes, my parents both have perfect credit. I actually was talking to my parents about the piggy back thing today. My dad was giving me advice and we have a plan for now. He seem's to think that since I now have a credit card that I can accomplish this on my own. He said to wait and see what my credit does in 6 months. If not improved, then we will try the piggyback thing.

Re: dropped 41 points!!!

Anonymous — Tue, 04 Nov 2014 03:47:14 GMT

The drop occurred right when they reported for the first time. It makes me feel better that this is temporary.

Re: dropped 41 points!!!

takeshi74 — Tue, 04 Nov 2014 13:20:18 GMT

It sounds like you probably have a thin file and/or derogs so hard pulls and new accounts reporting (drops your AAoA) can have a bigger impact. The effect of the hard pulls will taper and fall off relativey quickly and you'll build AAoA over time. However, if you do have any derogs then hit the Rebuilding subofurm to see what you can do to address them.

What score are you referring to anyway? Make sure you're keeping an eye on all 3 of your reports. If you're monitoring scores then make sure you're keeping an eye on all 3 CRA's.

Re: dropped 41 points!!!

CreditCardDiva — Tue, 04 Nov 2014 15:38:41 GMT

@Anonymous wrote:
This is completely normal. Also for the record you want below 10% of your cards utilization and total utilization. In about six months you should have your points back with more.

Yep. OP, it's shocking but you'll recover. I added....wait for it...SEVEN new tradelines. My AOAA is shot to the depths of the credit score abyss, AND my score took a near-death beating. So, I gotta stay in the "garden" for about a year, to recover from the damage. My utilization should now be at about 5%, from 13%, so that's the "good" in it, and that's what I wanted to happen.