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Major Credit Dip After Balance Transfer. Help!

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Valued Member

Major Credit Dip After Balance Transfer. Help!

My credit score was up to 669 a few weeks ago. It just dipped to 624. I keep all of my credit cards paid to zero every month. In fact, I rarely charge much on them. They are just there to build credit. I had dental work done and charged to Care Credit card on a six month zero interest deal. Six months is up and I didn’t have the money to pay the balance of $3200 so I opened two Compass credit cards that offer 13 months zero interest. I opened two because one credit limit wasn’t enough to cover the $3200. So I transferred the full Care Credit balance to the two Compass credit cards. All of this is the reason for the major credit dip. The two new credit cards lowered my one year old credit history to 6 months. Also, the $3200 on my Compas CCs is already showing up on my credit report along with the $3200 from Care Credit which hasn’t fallen off my credit report yet. 25 of the points seem to be from my utilization rate taking a sudden increase. Will my credit score increase once the Care Credit balance updates next month? Any advice is appreciated.

Established Contributor

Re: Major Credit Dip After Balance Transfer. Help!

I am not an expert, I just started my own rebuild. But as a dispassionate observer, I think you probably identified the two issues: reducing average age of accounts, and increasing credit utilization percentage (including artifically increasing it by having the charge double-counted). I think if you keep making payments on time, you should get most of it back within 2-3 months and all of it back whenever your credit utilization percentage is back where it was before. Good luck!

FICO 8 scores are deceptively high. My profile is young with a lot of new accounts and even more inquiries from 2019. The Barclay AU card is not on TransUnion; and, Equifax has some old positive accounts from 2011 that are not on the other two. That is the reason for the variation in scores. No derogs. Over 5/24 until fall 2021.

Authorized user / Corporate / Auto loan

Closed but still on reports: ExxonMobil, $950, 10/08-02/11 (Equifax only) | Citi secured, $200, 045/19-09/19 | Capital One secured, $300, 04/19-08/19 | My Jewelers Club, $5,000, 05/19-08/19 | Green Dot Primor, $300, 05/19-08/19 | Self Lender secured $500 loan, 04/19-01/20 | Unsecured personal loan from Coastal, $1,000, 06/19-08/19.

Goals: Late 2020 - Ducks Unlimited card; scores in high 700s with inquiries aging. Long-term goal - Prime rate mortgage; able to qualify for most standard credit products.
Message 2 of 6
Valued Contributor

Re: Major Credit Dip After Balance Transfer. Help!

OP, depending on your file you did take a hit for the youngest account reset and the average age reduction. Most of this is likely utilization. What is the CL on the care credit and what is its utilization? You mentioned needing two cards to absorb the 3200 which leads me to think you are maxed or close on the new cards. This will kill a score. You should get some back when the Dre credit goes to 0 which will improve your overall, but the ones maxed will still be a drag on your scores until you get those paid down.

Started Rebuild 4/2018: EX 616| TU 604| EQ 621

Current 1/03/20:

First Goal Score: 750+ Reached 3/2019

Next Goal all over 800
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Frequent Contributor

Re: Major Credit Dip After Balance Transfer. Help!

As far as revolving utilization only open cc's will be calculated into overall cc utilization.As you pay down the cc balance your FICO score will improve.Ideal will be one cc reporting a balance of 1-6%.GOOD LUCK...

Message 4 of 6
Super Contributor

Re: Major Credit Dip After Balance Transfer. Help!

First off. Never have all your cards show 0 balance. Always have 1 report 2-4% then PIF after statement cuts. Next is the first card you applied for is maxed basically. Get thet below 89%. You could have gotten a few CLI's since you've had the cards but didnt use them as you say. So the 2 extra cards could have been avioded and the hits that go along with opening new accounts. Its hind site now but now you know for future reference. Get them all paid down and never have all of them report 0 balnce. Good Luck!

Out of Commission until Wed due to working The IMSA Rolex 24 weekend. C-Ya!
Message 5 of 6
Valued Contributor

Re: Major Credit Dip After Balance Transfer. Help!

Your score will move around.  

Don't sweat it.

Pay it off as fast as you can or focus on getting utilization down to similar levels on each card.

It will go back up after your utilization is down and your new cards age.


Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $350k+ unsecured credit in 2020.


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