Credit line increase caused a 32 point drop

[Anonymous]

I woke up this morning to an alert from credit karma that my Experian score had dropped by 32 points. It just so happend that a new Sapphire card ($5,000) had alos hit my report so I assumed it was from that. I noticed that Chase had increased my Amazon Prime card by $1500 without asking me and it appears that this is what dropped the score.  I have read countless message boards with people having this same issue. I cannot for the life of me find an answer though. anyone??

[Jnbmom]

Your score could have dropped because of inquiry and your new account changed your AAOA,  but I see this was from credit karma, so you can't rely or their scoring system at all.

[kxkxkxx]

CLI's wont cause a drop like that..if anything, they increase since your credit utilization % would have dropped. As @Jnbmom pointed out, could have been your AAOA changed with the new card.

@Jnbmom is also right, CK is a joke when it comes to anything...they are often 30-50 pts lower than my true credit score. I would recommend you get your real score from MyFico and see what's going on.

[FlaDude]

I agree with the others that I wouldn't worry too much about the Vantage scores that CK gives. In my experience they are much jumpier than FICO scores and often much lower too. Mine were as much as 90 points lower than FICO at one point. Do you have any credit cards that give true FICO scores?

While some factors that make up scores are known, the actual algorithms are proprietary, and anything that CK says is a cause of the drop is just a guess. Your score drops are probably due to something other than the CLI.

[Anonymous]

As Jnbmom already pointed out, the new account reporting and the resulting actions from it are what caused any of the score drop.  An auto credit limit increase would not drop your score one bit.

[Anonymous]

As already pointed out.... Credit Karma doesn't show Experian fico scores. It shows Transunion and Equifax Vantage 3.0 models. That score is essentially worthless. You can check your experian score right from their site. It'll show you the fico 8 score as well as older versions that were previously used in credit card approvals, auto loans and mortgage.  

[Anonymous]

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@Anonymous wrote:

I woke up this morning to an alert from credit karma that my Experian score had dropped by 32 points. It just so happend that a new Sapphire card ($5,000) had alos hit my report so I assumed it was from that. I noticed that Chase had increased my Amazon Prime card by $1500 without asking me and it appears that this is what dropped the score.  I have read countless message boards with people having this same issue. I cannot for the life of me find an answer though. anyone??

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Two things:

• CK scores are from the VS 3.0 model, which are unmeaningful/irrelevant scores.  Those scores could drop 150 points and it shouldn't bother you at all.  Don't sweat them.  Only worry about FICO scores, as those are the ones that lenders use.
• FICO scores can almost never decrease due to a CLI.  The only exception I can think of is if the CLI brings someone across an extremely high threshold (say, a CLI from $65k to $75k on a credit limit) and that causes the trade line to be "ignored" by the FICO algorithm.  If this was one's only card with a reported balance, one could receive a penalty for "no recent revolving credit use."

[Anonymous]

It has nothing to do with the credit line increase. It would have to be due to the AAoA and AoYA. I've experienced something similar recently. Vantage is even more sensitive to short-term things like that.