topic Re: Vantage score drops after paying down debt in General Credit Topics

Vantage score drops after paying down debt

Anonymous — Sat, 19 Jun 2021 06:49:30 GMT

Yes, that's what happened. I paid off a credit card and my TransUnion Vantage score dropped 35 points. Equifax Vantage did the same. This was all 2 weeks ago. Yesterday, my TU Vantage dropped an additional 15 points because two of my credit card balances increased by roughly $130 each. My Equifax has yet to update this information. So, within the past two weeks my TU score has decreased by 50 points for contradicting reasons. Makes zero sense and I am beyond miffed. Can anyone possibly explain this "logic"?

Re: Vantage score drops after paying down debt

Horseshoez — Sat, 19 Jun 2021 10:13:38 GMT

@Anonymous wrote:
Yes, that's what happened. I paid off a credit card and my TransUnion Vantage score dropped 35 points. Equifax Vantage did the same. This was all 2 weeks ago. Yesterday, my TU Vantage dropped an additional 15 points because two of my credit card balances increased by roughly $130 each. My Equifax has yet to update this information. So, within the past two weeks my TU score has decreased by 50 points for contradicting reasons. Makes zero sense and I am beyond miffed. Can anyone possibly explain this "logic"?

The question some will ask you is, "Given Vantage scores are not used by literally any major lender, why do you care?"

Re: Vantage score drops after paying down debt

Physh1 — Sat, 19 Jun 2021 22:03:47 GMT

The short answers...

1) vantage score isn't used by any major banks for lending (yet)

2) many data points suggest (& I believe) that VS rewards higher use & reported utilization compared to Fico

Re: Vantage score drops after paying down debt

Anonymous — Sun, 20 Jun 2021 09:28:26 GMT

I didn't know about the higher usage. If that's the case, then it makes sense why my scores dropped. It's nice to have that info. Thank you.

Re: Vantage score drops after paying down debt

Creditguymke — Mon, 21 Jun 2021 15:42:33 GMT

I wouldn't worry much about it will balance out and like everyone else the vantage score isnt widely used just yet. I would focus more the credit file.

" Your credit score get you in the door but the credit file get you approved." With that being said make sure you're hitting all your data points with the mix of credit.

Just my thoughts

Re: Vantage score drops after paying down debt

Anonymous — Wed, 23 Jun 2021 14:42:44 GMT

I'm definitely trying to increase my FICO score with all 3 bureaus. I have work to do that's for sure. And mabye my Vantage scores will eventually increase as well. Thanks for your response.