HUGE drop of about 200 points yet nothing has changed

[Anonymous]

I am frustrated. I had an EXCELLENT score in late 2017 and then it dropped almost 200 points!

I looked at my credit report with Equifax and Transunion and the only change I had was completing a car loan and adding a new one. Both have refused to tell me what changed that would warrant a 200 point drop. Since then my score has rebounded a bit to 692/730 respectfully. It was at 815 in late 2017.

Where can I go to get help? I filed complaints with the Consumer Financial Protection Bureau but both companies replied with the same response they gave me "we have a scoring system.....yada yada". They NEVER disclosed what changed to justify such a drop so I can't even fix it.

Anyone have any ideas on what to do?

[Anonymous]

You finished a <9% util loan and added a >90% util loan. You score should take a sizable hit by that alone. However 200 points seems a bit excessive. Do you have other credit lines open?(credit cards) If you do what's the the credit limits and utilization on those in comparison to the loan?

[Anonymous]

So I had a 3% loan on a car that was completed then 2 months later opened a 2% loan on a car. That was the ONLY change in my credit report.

I just cant see that dropping my score by almost 200 points.

As I said, I reviewed my reports and have wondered "What changed?". Neither company will tell me what changed that effected my score. It is frustrating not knowing what I did to deserve this.

[thornback]

Where are you getting your scores? You only mention Equifax and Transunion, what about Experian? Are these scores from Credit Karma (Vantage model) or are they actual FICO scores?

[Anonymous]

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@thornbackwrote:
Where are you getting your scores? You only mention Equifax and Transunion, what about Experian? Are these scores from Credit Karma (Vantage model) or are they actual FICO scores?

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^^^This!

CK's scores react with wild swings when something small happens. My scores dropped 80 points at one point, while my FICO scores increased 5-7 points.

[DollyLama]

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@Anonymouswrote:

So I had a 3% loan on a car that was completed then 2 months later opened a 2% loan on a car. That was the ONLY change in my credit report.

I just cant see that dropping my score by almost 200 points.

As I said, I reviewed my reports and have wondered "What changed?". Neither company will tell me what changed that effected my score. It is frustrating not knowing what I did to deserve this.

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One for clarification, you had a 3% balance on a car note and paid it off? Then bought another, financed it and paid it down to 2% of the high balance? This is the way you are wording the problem. If..on the other hand you are talking interest rates, that has no effect on the utilization/balance of the loans. Plus adding a new loan will result most likely in a hard pull inquiry against 1 if not more credit bureaus, that knocks off some points. 2) The age of the new car loan is 0 to 1 month old, it will lessen the overall age of your credit history. Do you have the age of your youngest account and average age of accounts PRIOR to getting second auto loan, and what those two ages are now? 

Still please clarify a 2% loan, even if you owed say $2000 before, but refinanced the car, making even 1 flat monthly payment, your utilization on that loan would still be above 90% of its' balance. 

[Anonymous]

Credit Karma has Transunion at 692

Via Chase Credit Journey Transunion is at 692.

[Anonymous]

I completed the first car loan. It was at 3% interest at 5years. Paid every payment on time.

Then I bought a new car financed at 2% 5 years. That was the only major change in my credit.

The credit report companies gave me the generic "This is what can affect your ratings" but reviewing my reports I didnt have any of "this". Nothing. They refused to tell me why it dropped.

[Anonymous]

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@Anonymouswrote:

Credit Karma has Transunion at 692

Via Chase Credit Journey Transunion is at 692.

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It may be a good idea to get your actual FICO scores. I do not know what Chase uses, but, if it is Vantage Score 3.0 (like CK)...they are likely inaccurate. Purchase your true FICO scores here, or go to Credit Check Total (I think that's what it's called...someone more experienced may correct me) and get scores for $1. Vantage Scores are not used by almost anyone for any decisions. It is likely your actual FICOs did not take a 200 point hit. Best wishes.

[thornback]

Those are Vantage scores, not FICO. 90% of lenders use FICO scores. The Vantage model is rarely, if ever, used for making credit decisions. The Vantage model weighs scoring categories differently than FICO and, as stated by the other poster, has wild point swings in reaction to changes - a new account can cost you dearly in Vantage scoring.

Credit Karma is great for reviewing and monitoring your reports for changes, but the scores they provide are pretty useless in the credit world.

Get your FICO scores for all 3 bureaus to know where you stand. Vantage scores can be, and often are, vastly different (higher or lower) than FICO and therefore, a poor source for knowing where you stand credit score wise.

It's possible you never truly had "Excellent" credit - just good credit. It's also very likely you did not lose anywhere near 200 points.