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I was excited over the weekend when I learned that Target and Wayfair gave me a credit limit increase. Which to me means that my utilization would decrease and I would if anything receive an increase in my score but I didn't. My credit score Dropped. it's just 1 point (so far) but I am still upset. Is this normal?
What did I do wrong here. I didn't ask for the increase. They automatically droppeded it. The alert from my score says -1 " the balance on one of your accounts decreased" (and it showed the utilization drop from 36% to 17%) and -1 an account (target) listed on your credit report has been updated (and it showed the Credit increase from $700 to $1000)
Why am i being punished?
I assume you are getting your scores/alerts from MyFICO? If so, the alerts and score changes can be confusing.
The CL increase did NOT decrease your FICO score. The score decreased for some other reason prior the CL increase triggering the alert. You just weren't aware of it until an "alertable" event happened (the CL increase) and at that time your score was also updated.
I wouldn't be surprised if you got in increase in a day or two. That's happened to me in this sort of situation.
I've had at least 5 occasions when I got a temporary decrease in score, only to get a permanent increase in score a day or two later.