30 Point drop?

[Anonymous]

Hey guys I have read a lot and learn quite a bit I already appreciate these forums for the knowledge. However maybe I was lazy on my search. I could not find anything regarding balance transfer and a drop in points maybe you guys can help.

So here is the story I have 3 cc and some college loans on my credit, no delinquencies, I am never late. As far as CC I have a Orchard Bank at 600 credit limit (I owe nothing) had for 2 years next month. I have a Providian with 3200 credit limit (I owe 2033.71) had for almost a year. Then in October I got a Citi card with a 4200 credit limit (I owe nothing).

I get a free fico score every month by having a providian card (not sure if this is fako or fico) I have called providian to see where they get the score from they say TU. So in December I had a 683 in January it dropped to 652. Dammit I was almost to 700.

The only thing that changed from December to January was I did a balance transfer from the providian to the citi. I transfered $1125 from providian to citi to drop my balance a little under 30% on the providian and to put a little under 30% balance on my Citi card. I figured if anything this would raise my fico. So there it is. Why would this drop my score?

[Anonymous]

There could be a few different reasons for the drop.

1) It is possible that Citi reported the new balance before Providian reported the new balance on that account. So instead of Citi reporting $1125 and Providian reporting $908, Citi reported $1125 and Providian reported $2033.

2) You increased the number of accounts reporting a balance.

3) A combination of 1 and 2.

4) None of the above, some other reason. Did you have a new inquiry? Anything else change?

[llecs]

Welcome to the forums!

The Providian FICO score, or called PFICO here, is a FICO score, but is weighted towards CCs. If you were to pull your TU FICO score from here you'd find a totally different score. BTW, your PFICO score may be no more come very soon after Chase's purchase of WAMU.

I don't know how PFICO works. Per a FICO score, you likely would have seen a small decrease. Your overall utilization didn't drop, but individual utilization on the Providian/Wamu (Does it say Providian?) dropped. However, FICO likes to see $0 balances. Basically, you went from having 2 $0 balance CCs of 3 CCs to just one and that could hurt more than the decreased utilization on the Providian helped.

Edit to add...Sidewinder is a much faster typer than I am....need to go to typing school.

Message Edited by llecs on 01-26-2009 02:50 PM

[203bravo]

Just to verify - the Providian card wasn't a secured card was it?  I know that Chase discontinued the secured card programs and closed the accounts effect 1/09.  Is it possible that the Providian is reporting with a balance due, but a 0 CL?

[Anonymous]

Thanks guys I appreciate the quick response. Sidewinder that makes so much sense I bet that is what happened. No other inquiries as far as my credit report states. I did not purchase any big tickets items and as far as January my TU or EQ reports nothing as far as fraud. All the cards are unsecured cards. What sidewinder says make a lot of sense. That would put me way past 30% credit used vs. available. Which would make sense why my points dropped since I make no income being a full time student. Not sure if credit bureaus know if I am working or not but no income makes me a bigger risk which I could understand dropping my fico. Thanks for the response guys I do feel better now. I am trying to get above 720 so I can purchase a motorcycle. I guess I will wait a little longer.