@Anonymous wrote:Hi - First-time poster looking for advice. Two weeks ago, I refi'd my mortgage and combined my first and second mortgage. Through Credit Karma, I saw my Vantage Score 3.0 drop from 728 to 691 overall. I didn't take out money in the refi, I just consolidated/refi'd for a lower interest rate. I anticipated a small drop due to a new account being opened, but I didn't think that I'd lose almost 40 points.
Can anyone help me to understand what's going on? Is this temporary (if so, for how long)? Thanks in advance.
Welcome to MyFico Forums.
#1 - CreditKarma is not a trusted, reliable source for an accurate Fico score.
CreditKarma's agorythims are their own. It is a great tool to use as a reference to see your accounts, but definitely not if you want actual scoring information.
I have never refi'd, but my mortgage company has sold off my mortgage a couple times. I saw a few point drop every time as one closes and the new one begins. It kinda sucks but we all get over it. Especially if we are saving money.... I would follow up with a more reliable source to make sure something else hasn't reported on your credit report. It could be that CreditKarma has only sees your old mortgage and not your new Refi....
Good Luck!
Welcome to the forum.
CramEiko is correct that Credit Karma does not provide a FICO score. It is a Vantage 3 score not used by many lenders. As CramEiko also noted Credit Karma is a good source to review activity of your accounts and credit report but disregard the score unless you use one of few lenders using it. It responds differently to activity than FICO (algorithm that determines your score) and although some people find their Vantage and FICO scores are close, many find great variances. In addition you have many FICO scores. Your MTG lender used your MTG scores which are different than your FICO 8 scores and many more types of FICO scores.
You have likely taken a hit for the inquiry for your re-fi and for adding a new account, resetting your AoYA to 0. Once both reach 1 year you should see those pts returned if all other things are equal. Some see some of those pts returned a little earlier at different months. Not all experience this. When I re-fi'd my home I took an average hit of 16 pts between the 3 bureaus. But each persons profile is different.
You can get a free FICO 8 score from several sites. creditscorecard.com provides a free Experian FICO 8 score every 30 days.
Also many credit cards provide one of the many FICO scores. But many also provide Vantage 3 scores as does many free sites like Credit Karma, CreditSesame, WalletHub, etc.
Vantage looks at open accounts.
FICO looks at open and closed accounts.
That is one of the reasons for the scoring discrepancy.
In addition, your installment loan utilization might have changed to reflect higher %. You can compare the numbers if you did a before and after credit report.
FICO looks at open and closed accounts.
That is one of the reasons for the scoring discrepancy.
In addition, your installment loan utilization might have changed to reflect higher %. You can compare the numbers if you did a before and after credit report.
