Large Score Drop?

[Anonymous]

My score dropped significantly (83 points!!) from one month to the next and I am not sure what could have caused such a change. The following are the significant changes from one month to the next, was curious what I did wrong!! I get the FAKO scores and I saw a similar drop but the drop I am concerned about comes from my Barclay's Card free view.

* One new credit inquiry (i have a lot of inquiries, this kept me at a Poor rating for this category )

* Closed one newish account that had been open about three months. This one actually increased my average account age

* Credit card total available credit dropped from $169k to $119k (this could be it? but my utilization still isnt that high?)

* Credit card balances increased from about $4k to $7k (utiliziation went from about 3% to 7% due to this and the available credit)

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

Any thoughts?

[StartingOver10]

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@Anonymous wrote:

My score dropped significantly (83 points!!) from one month to the next and I am not sure what could have caused such a change. The following are the significant changes from one month to the next, was curious what I did wrong!! I get the FAKO scores and I saw a similar drop but the drop I am concerned about comes from my Barclay's Card free view.

* One new credit inquiry (i have a lot of inquiries, this kept me at a Poor rating for this category )

* Closed one newish account that had been open about three months. This one actually increased my average account age

* Credit card total available credit dropped from $169k to $119k (this could be it? but my utilization still isnt that high?)

* Credit card balances increased from about $4k to $7k (utiliziation went from about 3% to 7% due to this and the available credit)

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

Any thoughts?

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^^^Is that a typo?  Your balances increased significantly?  Or the cc you dropped had a large CL?  Looks like a $50k swing there.

[Anonymous]

The credit card I closed had an available credit of $15k and one credit card decreased my credit limit by $35k (at my request, maybe a large mistake?).

My balances increased somewhat (also listed) but the $169k to $119k is the total credit line

[StartingOver10]

Yes, reducing your credit limit by $35k and adding to balances and closing the $15k cc would have a significant impact on your utilization showing and cause your score to drop. 

[Appleman]

Obviously the scoring algorithm did not like the changes in your credit profile. That is quite a drop. Hopefully that will begin heading back up as the utilization is paid back down.

[Anonymous]

even if the utilization just went from 3% to 7% it would cause that much of a drop?

rookie error, i wanted the card to have a lower limit so i could possibly get another card from the same bank!!

[Thomas_Thumb]

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@Anonymous wrote:

even if the utilization just went from 3% to 7% it would cause that much of a drop?

rookie error, i wanted the card to have a lower limit so i could possibly get another card from the same bank!!

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That amount of change in utilization is trivial and should have only a minot impact on score.

My guess is Fico "flagged the CLD" and noted the account closure as problematic behavior. Score drop reflects uncertainty. It's a short term thing and your score should recover without any long term negative implications. 

[elim]

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@Thomas_Thumb wrote:

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@Anonymous wrote:

even if the utilization just went from 3% to 7% it would cause that much of a drop?

rookie error, i wanted the card to have a lower limit so i could possibly get another card from the same bank!!

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That amount of change in utilization is trivial and should have only a minot impact on score.

My guess is Fico "flagged the CLD" and noted the account closure as problematic behavior. Score drop reflects uncertainty. It's a short term thing and your score should recover without any long term negative implications. 

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  If so, Fico is more flawed than I thought as a consious decision was made to lower the limit and close the card.  

[SouthJamaica]

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@Anonymous wrote:

My score dropped significantly (83 points!!) from one month to the next and I am not sure what could have caused such a change. The following are the significant changes from one month to the next, was curious what I did wrong!! I get the FAKO scores and I saw a similar drop but the drop I am concerned about comes from my Barclay's Card free view.

* One new credit inquiry (i have a lot of inquiries, this kept me at a Poor rating for this category )

That wouldn't have done it.

* Closed one newish account that had been open about three months.

It might have affected you to reduce your available credit

This one actually increased my average account age

Correction: that had zero effect on your account age; in FICO open & closed revolving accounts both count. Closed accounts don't drop off for years.

* Credit card total available credit dropped from $169k to $119k (this could be it? but my utilization still isnt that high?)

Yes that could be it

* Credit card balances increased from about $4k to $7k (utiliziation went from about 3% to 7% due to this and the available credit)

I have working theory that 6% is a major threshold

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

If any instalment loan balances dropped to zero, that might have been a negative; otherwise no.

Any thoughts?

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[Anonymous]

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@Thomas_Thumb wrote:

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@Anonymous wrote:

even if the utilization just went from 3% to 7% it would cause that much of a drop?

rookie error, i wanted the card to have a lower limit so i could possibly get another card from the same bank!!

---

That amount of change in utilization is trivial and should have only a minot impact on score.

My guess is Fico "flagged the CLD" and noted the account closure as problematic behavior. Score drop reflects uncertainty. It's a short term thing and your score should recover without any long term negative implications. 

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interesting....i guess i think of the FICO score as something more linear...here's to hoping that the rebound comes!