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Transunion Credit Karma Score Drops of 44 points

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Transunion Credit Karma Score Drops of 44 points

I recently opened a considerable number of new credit card.  Today 1 inquiry and 4 accounts hit my Transunion report and it dropped 44 points.  Is this common?  How long does it take to rebound.  Only other thing that showed was around $300 in balances total on several cards.  Utilization is under 10% over all. 

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Senior Contributor

Re: Transunion Credit Karma Score Drops of 44 points

VantageScore 3.0 does punish score for opening "too many" revolving credit accounts in a short period of time. How many is too many? I'd say 3 or more. What is a short period of time? Certainly 30 days, perhaps 45 days.

 

VantageScore graphs indicate negative impact of new accounts (excluding inquiries and AAoA) should disappear in 90 days.I'd estimate 24 to 29 points of your total drop were "too many new accounts" related. The remaining 15 to 20 points may require more time to recover as AAoA takes a while to build and VS3 looks at inquiries for 2 years.

 

Best to view the above score drop breakdown as a guestimate - coiuld be off considerably.

 

Note: Impact on score associated with "too many accounts opened recently" is dependent on how many open accounts you had before. If you had one or 2 impact will be more severe relative to someone who had 6 to 10 cards open. It does not appear that closed CC accounts or file thickness buffer the impact.

 

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 2 of 11
Super Contributor

Re: Transunion Credit Karma Score Drops of 44 points

Credit Karma and "FICO" scoring can't be used in the same sentence.

Message 3 of 11
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Senior Contributor

Re: Transunion Credit Karma Score Drops of 44 points


@BrutalBodyShots wrote:

Credit Karma and "FICO" scoring can't be used in the same sentence.


I think you just did - and the 1st poster to do so in this thread. Smiley LOL

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 4 of 11
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Super Contributor

Re: Transunion Credit Karma Score Drops of 44 points

These things happen.

Message 5 of 11
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Senior Contributor

Re: Transunion Credit Karma Score Drops of 44 points


@Thomas_Thumb wrote:

VantageScore 3.0 does punish score for opening "too many" revolving credit accounts in a short period of time. How many is too many? I'd say 3 or more. What is a short period of time? Certainly 30 days, perhaps 45 days.

 

VantageScore graphs indicate negative impact of new accounts (excluding inquiries and AAoA) should disappear in 90 days.I'd estimate 24 to 29 points of your total drop were "too many new accounts" related. The remaining 15 to 20 points may require more time to recover as AAoA takes a while to build and VS3 looks at inquiries for 2 years.

 

Best to view the above score drop breakdown as a guestimate - coiuld be off considerably.

 

Note: Impact on score associated with "too many accounts opened recently" is dependent on how many open accounts you had before. If you had one or 2 impact will be more severe relative to someone who had 6 to 10 cards open. It does not appear that closed CC accounts or file thickness buffer the impact.

 

 


This is great information! Thanks!

 

I noticed my friend's Vantage 3.0 score dropped when they paid down debt and brought their utilization from around 70 plus % to 8%. Why did this happen?

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (8.12.20) EX: 835 / EQ: 846 / TU: 834
Message 6 of 11
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Super Contributor

Re: Transunion Credit Karma Score Drops of 44 points

The score wouldn't have dropped due to cutting utilization from 70% to 8%.  If it dropped, it dropped due to another factor outside of utilization.

Message 7 of 11
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Senior Contributor

Re: Transunion Credit Karma Score Drops of 44 points


@BrutalBodyShots wrote:

The score wouldn't have dropped due to cutting utilization from 70% to 8%.  If it dropped, it dropped due to another factor outside of utilization.


We looked at the credit report in detail and the only change was the decrease in utiliztion.

 

 

American Express: Platinum Charge, Optima, Business Gold, Delta Business Platinum
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture VS
Chase: Freedom U VS, CSR VI
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity VS
Credit Union: Rewards Visa
FICO 08: (8.12.20) EX: 835 / EQ: 846 / TU: 834
Message 8 of 11
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Super Contributor

Re: Transunion Credit Karma Score Drops of 44 points

Then it's a fluke.  It's literally impossible for a drop in utilization to result in a lower score, unless that drop is to 0% aggregate utilization which was not the case in your example.

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Super Contributor

Re: Transunion Credit Karma Score Drops of 44 points

Hum, AAofA could definitely be a factor. 


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover..
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