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Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

Person10011
Member

Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

I am totally confused, would greatly appreciate some insight.  I have been working on improving my credit score by paying down my credit cards after having relied on them during difficult time financially.  I just put $6000 toward 3 of my 4 credit cards, reducing my overall utilization from 42% to 35% and I'm completely shocked to see my score drop a whopping 50 points from 754 to 694.  (4th card is on a different schedule).  WHY?

 

Card 1

Beg Balance    8800

Credit Limit     17000

Payment         $4000

Cur Balance     $4600

Utilization :    44% to 27%

 

Card 2

Beg Balance    $220

Credit Limit    $5500

Payment         $200

Cur Util:            0%

 

Card 3

Beg Balance  $2150 

Credit Limit    $10,000

Payment         $1750

Cur Balance       $400

Utilization:   11% to 4%

 

Card 4

Beg Balance    $14,600

Credit Limit      24,000

Payment          No change

Utilitzation:     62%

Message 1 of 12
11 REPLIES 11
CH-7-Mission-Accomplished
Valued Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!


@Person10011 wrote:

I am totally confused, would greatly appreciate some insight.  I have been working on improving my credit score by paying down my credit cards after having relied on them during difficult time financially.  I just put $6000 toward 3 of my 4 credit cards, reducing my overall utilization from 42% to 35% and I'm completely shocked to see my score drop a whopping 50 points from 754 to 694.  (4th card is on a different schedule).  WHY?

 

Card 1

Beg Balance    8800

Credit Limit     17000

Payment         $4000

Cur Balance     $4600

Utilization :    44% to 27%

 

Card 2

Beg Balance    $220

Credit Limit    $5500

Payment         $200

Cur Util:            0%

 

Card 3

Beg Balance  $2150 

Credit Limit    $10,000

Payment         $1750

Cur Balance       $400

Utilization:   11% to 4%

 

Card 4

Beg Balance    $14,600

Credit Limit      24,000

Payment          No change

Utilitzation:     62%


Where are you getting your scores from, Credit Karma?   If yes, do you see the point drop in Equifax or Transunion?   With credit scores there is no instance where lowering utilization would cause a decrease in score under any model unless all of your revolving cards reported at zero and/or you paid off an installment loan.   Something else is going on but before you panic, tell us which scores you're using.  Do you have access to your FICO scores?

Message 2 of 12
Person10011
Member

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

yes, you are correct.  Those scores are from credit karma which JUST updated, both Equifax and Transunion.  My actual Fico from my bank and Experian have not yet been updated with the latest information.  Fico 9 with my bank as of 1/22/22 is 768.  Fico 8 through Experian as of 2/13/22 is 754. 

Message 3 of 12
FireMedic1
Super Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

Did you get those %'s from "See What Changed?" Whats the credit usage say now and before on CK. Dont let those Vantage scores psych you out.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 4 of 12
Person10011
Member

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

Yes, those numbers come from See What Changed.  Overall utilization dropped from 42-35%, each card below

 

Card 1

Utilization : 44% to 27%

 

Card 2

Cur Util: 0%

 

Card 3

Utilization: 11% to 4%

 

Card 4

Utilitzation: 62%

Message 5 of 12
SouthJamaica
Mega Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!


@Person10011 wrote:

I am totally confused, would greatly appreciate some insight.  I have been working on improving my credit score by paying down my credit cards after having relied on them during difficult time financially.  I just put $6000 toward 3 of my 4 credit cards, reducing my overall utilization from 42% to 35% and I'm completely shocked to see my score drop a whopping 50 points from 754 to 694.  (4th card is on a different schedule).  WHY?

 

Card 1

Beg Balance    8800

Credit Limit     17000

Payment         $4000

Cur Balance     $4600

Utilization :    44% to 27%

 

Card 2

Beg Balance    $220

Credit Limit    $5500

Payment         $200

Cur Util:            0%

 

Card 3

Beg Balance  $2150 

Credit Limit    $10,000

Payment         $1750

Cur Balance       $400

Utilization:   11% to 4%

 

Card 4

Beg Balance    $14,600

Credit Limit      24,000

Payment          No change

Utilitzation:     62%


The reduction of aggregate revolving utilization did not cause a score drop in any FICO scores. Something else caused it.

 

1.  What scores are you talking about?

2.  Where are you getting them from?

3.  What other changes occurred in your reports?


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 718 TU 721 EX 698

Message 6 of 12
SouthJamaica
Mega Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!


@Person10011 wrote:

yes, you are correct.  Those scores are from credit karma which JUST updated, both Equifax and Transunion.  My actual Fico from my bank and Experian have not yet been updated with the latest information.  Fico 9 with my bank as of 1/22/22 is 768.  Fico 8 through Experian as of 2/13/22 is 754. 


The Credit Karma scores are not FICO scores, and are not meaningful.


Total revolving limits 689000 (587000 reporting) FICO 8: EQ 718 TU 721 EX 698

Message 7 of 12
RSX
Valued Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

one of the first things everyone learns on this site, is that the CK scoring is not able to be explained....

 

I know - because i was one of them

 

anytime we see large increases or drops, it is usually a CK Vantage score - their scores swing like nobodies business

 

start looking at your FICO scores, which are 1. more accurate - 2. don't have unexplained volatility - and 3. are the ACTUAL scores that Lenders use

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Dec 29/2021 EX. 734 EQ. 739 TU 746
June 15/2022 EX. 709 EQ. 684 TU 710
Inq. EX 3 EQ 4 TU 3 - - CC 5x24, 2x12
Amex BCP $32k - Apple GS $19k - BMW/Elan $14k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $25.5k - HSBC Gold - $13k - PayBoo - $7.6k - Penfed Gold - $12.5k - USB AltitudeGO -$16k- USBank Cash+ -$24k - PenFed LOC - $20k - USB LOC - $8k
Message 8 of 12
Person10011
Member

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

Thanks for all your replies.  FYI - nothing else changed at all.  Your point about Vantage vs Fico has been received.  Smiley Happy

 

Message 9 of 12
RSX
Valued Contributor

Re: Reduced Utilization from 42 to 35% - 50 point DROP - I hope someone can help me out!

CK is not totally useless though - it is probably one of the best/fastest reporting tracking system

 

i can do an HP for a new account and usually within a minute or two i have an alert from CK

 

so we aren't saying it doesnt have its' place - just not for scoring

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Dec 29/2021 EX. 734 EQ. 739 TU 746
June 15/2022 EX. 709 EQ. 684 TU 710
Inq. EX 3 EQ 4 TU 3 - - CC 5x24, 2x12
Amex BCP $32k - Apple GS $19k - BMW/Elan $14k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $25.5k - HSBC Gold - $13k - PayBoo - $7.6k - Penfed Gold - $12.5k - USB AltitudeGO -$16k- USBank Cash+ -$24k - PenFed LOC - $20k - USB LOC - $8k
Message 10 of 12
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