@acercode wrote:I opened accounts with Discover and Capital One couple months ago. For some reason CO wasn't reported to the credit bureaus for months. When it finally hit, my FICO suddenly dropped 100 pts from 700 to 600. Is this normal? And will it go back up 100 pts when I pay it off or will it take a long time? CO was at 70% usage when reported. I plan on paying it off each month.
I wouldn't say it's normal. Seems rather extreme.
Where are you getting your scores from?
Was it Experian that dropped a 100pts?
@acercode wrote:Actually, Equifax. It's the only one reporting CO for whatever reason. I'm guessing others will plummet too once it gets reported. The reason I'm carrying over 50% is because I heard it's the best way to get a CLI. I will be paying off the entire balance so hope FICO goes back up.
1. Equifax doesn't provide FICO scores, so I don't know what score it is.
2. Carrying over 50% does not get you a CLI. What you heard is just wrong. You're better off paying in full every month and carrying no balances at all. You can use your card, without carrying it over or letting the card report a high balance.
It's definitely not normal for any score to move 100 points, but certainly is possible. You need to take control of your credit to understand how and why it could happen. Too many factors for us to guess for you. Different score versions behave differently.
Pull your free annual credit reports and use free services to monitor month to month. Ideally subscribe to a service like MyFICO. You need to watch exactly what is being reported and what changes. Don't rely completely on alerts.
If you want some help from the folks here, post all the details about your credit file.
@acercode wrote:I opened accounts with Discover and Capital One couple months ago. For some reason CO wasn't reported to the credit bureaus for months. When it finally hit, my FICO suddenly dropped 100 pts from 700 to 600. Is this normal? And will it go back up 100 pts when I pay it off or will it take a long time? CO was at 70% usage when reported. I plan on paying it off each month.
A CO is a big deal when it comes to FICO scoring. However, with the newly reported CO, it could have put you on a different scorecard causing the dramatic drop. Paying the CO off would help, but the fact that its being reported and on your credit report will effect FICO scoring. As time progresses, the impact will have less impact to your credit scores.
@sznthescore wrote:
@acercode wrote:I opened accounts with Discover and Capital One couple months ago. For some reason CO wasn't reported to the credit bureaus for months. When it finally hit, my FICO suddenly dropped 100 pts from 700 to 600. Is this normal? And will it go back up 100 pts when I pay it off or will it take a long time? CO was at 70% usage when reported. I plan on paying it off each month.
A CO is a big deal when it comes to FICO scoring. However, with the newly reported CO, it could have put you on a different scorecard causing the dramatic drop. Paying the CO off would help, but the fact that its being reported and on your credit report will effect FICO scoring. As time progresses, the impact will have less impact to your credit scores.
@sznthescore,I believe the OP is using CO here to indicate Capital One, not a charge off.
@acercode, don't go by the EQ score. That's not a FICO score. It's a Vantage score. Vantage scores are quite volatile, and often times way off from your true FICO 8. I'd get your true FICOS from either here on MyFICO or Experian.com.
Also DO NOT keep up this prolonged high utilization in hopes of getting a CLI. All you're doing is making yourself look risky. Cap One will know how much you spend and pay each month internally. No need to let your card report with 70% utilization.
