please help me understand why my score dropped drastically?

[Anonymous]

I started a car loan in August 2018 which the bank reported to the credit unions on Sept 10, 2018. On Sept 12, 2018 my score dropped by 63 points. The bank told me that they will start the installments after 2 months. So they did not deduct any installment uptil Nov 2018. Again on Oct 5 my score dropped by 68 points. From very good score which was above 750 my current score is 639. When it was the bank's decision to start the installments after two months why my score dropped? I have not missed any of the installment. What can I do to bring the score back up? I have only two credit lines and the first one started only 2 years back when I moved to US. I am planning to buy a house and the low score is hurting.

[RobertEG]

Calculate your average age of accounts before and after addition of the new account with only two month's age.

With a thin file, it may be very significant......

[Anonymous]

My oldest account is little more than two years. What do I do to bring it up? Should I pay some part of my car loan? I took a car loan to build another credit line but the result was opposite

[FireMedic1]

What is the other credit line besides the car? And yes AAoA under 2 yrs hurts. Since it looks like you took a hit. If you have 1 CC. Another will help. But either way its going to take time.

[Anonymous]

Where are you getting your scores from?

[Anonymous]

You should go through your reports carefully and see if something else is going on at the same time. I could believe a score drop initially when the loan appears (although a 63pt drop seems extreme), but the loan causing a subsequent 68pt drop the following month doesn’t make sense. I don’t have any explanation why you’d lose 131pts this way. I would think something else happened (assuming as Overmedicated implied, that you are reading FICO scores).

[Anonymous]

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@Anonymous wrote:

On Sept 12, 2018 my score dropped by 63 points.

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What score?  What is the source of your score?  If it isn't a FICO score it isn't relevant or meaningful.

[FlaDude]

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@Anonymous wrote:

When it was the bank's decision to start the installments after two months why my score dropped? I have not missed any of the installment. 

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Unless it was reported as a late payment (over 30 days), when your first payment was made shouldn't matter. As @ImTheDevil, said, you need to pull your credit report for the bureau that your score is from to see what is in there. If there are any late payments, then a drastic score drop is no surprise. If you feel there was an error or misunderstanding, you might be able to talk to the lender and see about getting the late reports removed, often called a goodwill (GW) removal.

Without knowing more about what is in your credit report, we're just guessing.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

On Sept 12, 2018 my score dropped by 63 points.

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What score?  What is the source of your score?  If it isn't a FICO score it isn't relevant or meaningful.

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This is my credit score from Experian. I have created an account on their site and keeps sending me alert about credit score increase and decrease. I was not paying much attention to it. But lately I pulled a credit report from them and found that my credit score was 639. I went back and looked at the alerts and found two alerts on sudden decrease of over 60 points in September and October, just after the lender informed the credit bureau of my new car loan account.

So, are you saying that I should not worry about this credit score at all? I am looking for a house and dont want anything to come as a surprise while applying for a mortgage loan.

[Anonymous]

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@Anonymous wrote:
You should go through your reports carefully and see if something else is going on at the same time. I could believe a score drop initially when the loan appears (although a 63pt drop seems extreme), but the loan causing a subsequent 68pt drop the following month doesn’t make sense. I don’t have any explanation why you’d lose 131pts this way. I would think something else happened (assuming as Overmedicated implied, that you are reading FICO scores).

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The credit score is on my Experian statement. I registered on Experian site for an account and pulled the credit report. When I looked at the credit alerts it showed two sudden drops in Sept and Oct. Should I pull a credit report from annualcreditreport.com, but it will not give my credit score. What is the other option? Thanks.