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Can someone please help explain the 50 point drop in score!!??

Regular Contributor

Can someone please help explain the 50 point drop in score!!??

                    Ok, started rebuilding last November with a secured BOA card of 300.00 and a creditit builder loan from a local CU. Things were looking great. Scores were going up, and EQ and EXP were around 615, while my TU took a big jump with a baddie falling off and went to 712 last week. I needed another building card and got a Barclay's rewards MC with 500.00 limit, and a Walmart store card 600.00 limit. At the same time my father put me on as a AU on his CAP1 Quicksiver with a 15,000 limit 12 year history never late. Pretty exited and making progress here. All 3 posted today and my TU stayed the same, EXP the same, but EQ Drops 50 points!!! Reason given was

I have too many revolving accounts and too high a limit. They suggest closing an account and/or asking for a credit limit decrease??!! Whaaat??? I have 3 credit cards with a combined limit of 1400.00?? Can anyone shed some light on this??? Please. Even if the 15,000 AU account came into play ,I make 58,000 a year and my current DTI is around 9%. I have no mortgage or car loan. How the heck would they know what I make annually anyhow?

Message 1 of 3
Moderator Emeritus

Re: Can someone please help explain the 50 point drop in score!!??

Ok, first off they don't know how much you make.  It doesn't matter anyway because your earnings aren't figured into scores.  Util, or how much of your credit limit you use does.  So how much of your CL are you using?  Also do you have a balance across all those cards?

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 3
Regular Contributor

Re: Can someone please help explain the 50 point drop in score!!??

Balance is only on 1 card. The secured. I haven't even received the Barclay's or the Walmart yet. I always make sure the balance on the secured is 18.00, or 6% UTIL when the cycle closes, then PIF. The AU is not showing on EQ yet, so thats not a factor. This means it brought my AAoA down pretty good, from 6.8 years to maybe 2 or so. Maybe thats the deal, and it's just worded wrong about too much credit. If they think 1400.00 CL is too much, wait till the AU card hits. That will get the AAoA back into perspective, and maybe the hit will be less. Total inq for the past 2 years is 4, so I'm ok there. Thanks for the reply, and way to go on your scores from starting at a 500. Thats awesome!

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