@Anonymous wrote:I'd like to bump this to the top.
I've recently had a similar issue to the OPs whereas my score dropped from a large CLI. I've searched the forums and have found countless other people experiencing the same issue. Most responses have been that CLI do not cause a score to drop but that seems to be incorrect.
This increase was significant so my utilization dropped quite a bit. I have NO another negative reporting so they is NO other reason why my score would decrease.
Does anyone have some other idea of what might cause a score to decrease from a CLI?
What does the rest of your credit profile look like?
@Anonymous wrote:i have 7 credit cards all paid on time except for 1 late payment, 2 inquiries, and a BK from 2014. My overall credit utilization is at 59% which I've been bringing down consistently every month. I've gone over my credit report from trans union and nothing negative has been reported.
The CLI did not cause a decrease in your scores.
You really need to look elsewhere.
@Anonymous wrote:You're wrong and It did. And there have been countless others throughout not only these forums but others who have experienced the same issue. There's not a whole lot going on with my credit report as of recently so if there was something else, I'd be able to spot it.
Sorry, this is a debate which I do not believe you will prevail in. Why? There is just too much empirical data to back up what @SouthJamaica wrote for him (or her, don't actually know) to be "wrong".
@Anonymous wrote:I'd like to bump this to the top.
I've recently had a similar issue to the OPs whereas my score dropped from a large CLI. I've searched the forums and have found countless other people experiencing the same issue. Most responses have been that CLI do not cause a score to drop but that seems to be incorrect.
This increase was significant so my utilization dropped quite a bit. I have NO another negative reporting so they is NO other reason why my score would decrease.
Does anyone have some other idea of what might cause a score to decrease from a CLI?
@Anonymous: Yes. This can happen to FICO mortgage scores when one is using the AZEO method to optimize FICO scores, and the target CC gets a CLI above a certain threshold. (FICO scores can also drop when the target CC for the AZEO method accidentally gets coded as a charge card when it's reported to the CBs, but that mistake has nothing to do with a CLI.)
Specifically, if every CC reports a $0 balance except one CC, which reports a small balance (like under $100), and that CC with a balance gets a CLI, say from $34,000 to $36,000 (any amount above $35,000, really), then as soon as that new CL is reported on the TU CR, the TU FICO 4 (mortgage) score will decrease about 10 to 20 points due to the "All Zero" (AZ) penalty. This is because the FICO scoring calculations remove that $36,000 CL tradeline from the balances and utilization ratios involving revolvers and open-ended accounts. Therefore, all CCs that now count as revolvers have a $0 balance, resulting in the AZ penalty, which drops the TU FICO 4 score.
The exact same thing happens to the EQ FICO 5 (mortgage) score, which has the same $35,000 CL threshold. In the above scenario, you would see both the TU FICO 4 and EQ FICO 5 scores drop points at the same time as the new $36,000 CL is reported. The EX FICO 2 (mortgage) score has a $31,000 threshold, so you wouldn't expect to see it drop, too, unless the CL on that CC jumped all 3 CB thresholds, say from $30,000 to $36,000.
You didn't mention which TU FICO score dropped, but a 59% aggregate utilization across all revolving and open-ended accounts when one revolving account's CL is above $35,000 exceeds the criteria for the AZEO method, so this situation doesn't apply to your case, including with FICO 8 and 9 scores.
I think you need to look at what else is going on in your credit file besides the CLI to account for the score drop. Did this TU FICO score drop on the first of the month? FICO 8 and 9 scores often drop when the oldest credit account reaches 3 years old. (Doesn't happen to everyone.) Do you have any AU CC accounts? If so, the AU accounts can accidentally drop your FICO scores when the primary users don't realize how their actions can adversely affect the AU's FICO scores.
