How does lowering my utilization lower my score??

[Anonymous]

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@sarge12

The only cases where I have known of something that known to be is good for a score lowering it instead and that actually being the cause of the score drop is in the rare cases of it causing re-bucketing. I have read of a collection dropping of the report as the only negative causing it, but the score actually dropped significantly. Almost all other cases are the misunderstanding of the idiotic way it shows an alert and the score change that it shows with it. I wish myfico would make it clear on the alert that the shown change in score may be unrelated to the alert. I also wish myfico would just go ahead and either eliminate the simulator or at least make it clear that it is worthless as a predictor of how the score will actually affect the scores.

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While what you mention regarding re-bucketing is completely true, I don't believe that re-bucketing can occur from a utilization change, so that shouldn't apply to the OP here.  I agree 100% with your comment regarding MF alerts and the simulator.  Those issues come up on a daily basis, usually multiple times on this forum and it results in grossly mislead members.

[Anonymous]

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@AnonymousI'm thinking it has to be because of a new credit card account being added. But it still doesn't make much sense because I got an alert that the account was added a week before this latest alert that showed my score dropping. Fyi the first alert about the new account did not affect any of my scores.

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Did you lose any points from the inquiry associated with the new account?

[Anonymous]

Yes, I lost 2 points when those inquiries hit on April 14th and another point a few days later.

[sarge12]

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@Anonymous wrote:

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@AnonymousI'm thinking it has to be because of a new credit card account being added. But it still doesn't make much sense because I got an alert that the account was added a week before this latest alert that showed my score dropping. Fyi the first alert about the new account did not affect any of my scores.

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Did you lose any points from the inquiry associated with the new account?

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I wonder this also BBS...I am not sure that a new credit card account is counted in AAoA, AoYA and utilization until the credit card actually shows activity...it may, but I am unsure. If you recieve a card, and decide that it was a mistake before it is activated, and never does get activated...does it count in these areas? The inquiry is going to affect a score slightly even if declined, but when the actual account is counted, I am not sure of. Since the OP is questioning why his score went down just 3 points, It might have an effect because of the inquiry 1 month, and the new active account the next month. Whatever it is, it does not take much to influence a score 3 points.

[Anonymous]

I believe that age of accounts factors are impacted the moment a new account lands on a credit report.  A new account will of course land there regardless of whether or not it is used.  In your example where the card never gets activated, I still believe the account would show up on one's credit report and thus be factored into the age of accounts factors by the algorithm.

[Anonymous]

See, now I'm thinking opening up 2 more accounts wasn't the best for me but on the other hand, I had to start somewhere with my gardening process and only one credit card wasn't going to get me there. I felt like doing this was (and may still be?) A calculated move to increase my credit long term despite the minor credit score hiccups you get when you first open new accounts....

Seems like I'll just have to wait it out and become a credit hobbit again for a while.