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Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

mystro9876
Contributor

Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

Hi All,

 

Anyone have experience/expertise with why this happened?

 

Over the past 6 months, my wife and I have worked to get her credit cleaned up.  About a month ago we finally crossed the 700 score mark, with her score settling in at 720 over the past couple weeks (was 585 when we started).  She has one derog left (AMEX charge off), however the rest of her profile is clean. We've had tremendous success and momentum, but it was justed killed in a sense.

 

I thought it was a good time to remove her as an AU from one of my credit cards, as I figured we'd have to anyway as we start mortgage shopping soon.  My thought was this AU account would have minimal, if any, impact on her score.  Well I guess i was completely wrong as this morning we woke up to an alert from Experian that her score DROPPED 30 Points.

 

The AU account was only about 3 years old, and was a small 750 limit, with utlization  at <1%.  After checking the stats, her utlilization % actually went lower as another credit card reported a significant decrease in usage (50% to 0%) last night, and her AAoA was not impacted, sitting at 4 years.

The AU account is still on her credit report, just being reported as closed/terminated

 

So if utilization actually got better (sitting at 16% overall compared to 25% the prior day), and her AAoA was not impacted (still sitting at 4 years), why did her score drop 30 points?  I am 100% confident those were the only two changes to her report

 

Could it be a glitch and will rebound on tomorrow report (Anyone ever experience this with Experian/FICO)?

Is it how the credit card company closed the AU account on her report?

Should i have the credit card company remove the trade line rather than reflecting it as closed?

Any other ideas on what happened?

Should i call Experian?

 

We are bugging out a bit as Experian's score simulator has her best simulated score at 700 (paying accounts on time for 24 months), and the module has been pretty accurate compared to how her score has increased over the past few months.  I checked EQ and TU's report this morning and the scored are still sitting where they have been (715/717), but they haven't made the updates yet.  EQ/TU VantageScores haven't been impacted yet either, sitting around 730.

 

Please help!  Thank you!

 

 

 

 

14 REPLIES 14
Bradac56
Valued Member

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

Looking at your scores daily is a sure way to an ulcer.  Keep in mind this stuff takes time and can be very slow to re-report.

 

I would suspect it will bounce back but it could take a week or month.


Message 2 of 15
kkboom
Frequent Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

I definitely lost 20+ points after having my au account taken off my credit. It hasn't bounced back since & that about 6 months ago. Hopefully, your wife's scores will rebound sooner. 


Gardening until 10/2021
Message 3 of 15
Birdman7
Super Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP


@mystro9876 wrote:

Hi All,

 

Anyone have experience/expertise with why this happened?

 

Over the past 6 months, my wife and I have worked to get her credit cleaned up.  About a month ago we finally crossed the 700 score mark, with her score settling in at 720 over the past couple weeks (was 585 when we started).  She has one derog left (AMEX charge off), however the rest of her profile is clean. We've had tremendous success and momentum, but it was justed killed in a sense.

 

I thought it was a good time to remove her as an AU from one of my credit cards, as I figured we'd have to anyway as we start mortgage shopping soon.  My thought was this AU account would have minimal, if any, impact on her score.  Well I guess i was completely wrong as this morning we woke up to an alert from Experian that her score DROPPED 30 Points.

 

The AU account was only about 3 years old, and was a small 750 limit, with utlization  at <1%.  After checking the stats, her utlilization % actually went lower as another credit card reported a significant decrease in usage (50% to 0%) last night, and her AAoA was not impacted, sitting at 4 years.

The AU account is still on her credit report, just being reported as closed/terminated

 

So if utilization actually got better (sitting at 16% overall compared to 25% the prior day), and her AAoA was not impacted (still sitting at 4 years), why did her score drop 30 points?  I am 100% confident those were the only two changes to her report

 

Could it be a glitch and will rebound on tomorrow report (Anyone ever experience this with Experian/FICO)?

Is it how the credit card company closed the AU account on her report?

Should i have the credit card company remove the trade line rather than reflecting it as closed?

Any other ideas on what happened?

Should i call Experian?

 

We are bugging out a bit as Experian's score simulator has her best simulated score at 700 (paying accounts on time for 24 months), and the module has been pretty accurate compared to how her score has increased over the past few months.  I checked EQ and TU's report this morning and the scored are still sitting where they have been (715/717), but they haven't made the updates yet.  EQ/TU VantageScores haven't been impacted yet either, sitting around 730.

 

Please help!  Thank you!

 

 

 

 


@mystro9876 on the last reported score before the AU was terminated, did it have a balance? Secondly, does the wife have any other authorized user accounts on her report? Third, if you really believe that's what it is why not just add her back? If so the points would come back. But something just doesn't feel right about it, imo. Can you give us more profile information?

-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 4 of 15
mystro9876
Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

Hi,

 

Definitely doesn't feel right. This is the only AU account on her profile. The Credit Limit on the AU card is $750, last reported balance was $23 as of March 5th.   I believe I read that reporting a 0 balance on a sole AU account would decrease the score, hence the small balance.  I have no problem adding her back, but she just got approved for an AMEX card, which will be reporting in the next month or so, and I didn't want her to have too many credit cards reporting .

 

If i don't see it increase by the end of next week, I'll add her back.

 

Stats:

Yesterday Score = 720 EX

Today's Score = 690 EX

Average Age - 4 years

Oldest - 11 years

Open TLs

6 Open CC TLs (without the AU account), will be 7 once AMEX reports

-0 Derogs

-3 reporting zero balance (5 by end of month)

-16% overall usage (9% by end of month)

-26% highest single card usage 

 

1 open auto loan

-65% paid

-0 derogs

 

Closed

1 closed credit card - Charged off, fully paid, DoFD 9/2018

2 closed auto loans - no derogs

1 closed personal loan - no derogs

 

1 inquiry/24 months- 3/5/2021 (AMEX)

0 bankruptcies/judgements

0 Collections

 

I'll report back once I get tomorrow's score

Message 5 of 15
Birdman7
Super Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP


@mystro9876 wrote:

Hi,

 

Definitely doesn't feel right. This is the only AU account on her profile. The Credit Limit on the AU card is $750, last reported balance was $23 as of March 5th.   I believe I read that reporting a 0 balance on a sole AU account would decrease the score, hence the small balance.  I have no problem adding her back, but she just got approved for an AMEX card, which will be reporting in the next month or so, and I didn't want her to have too many credit cards reporting .

 

If i don't see it increase by the end of next week, I'll add her back.

 

Stats:

Yesterday Score = 720 EX

Today's Score = 690 EX

Average Age - 4 years

Oldest - 11 years

Open TLs

6 Open CC TLs (without the AU account), will be 7 once AMEX reports

-0 Derogs

-3 reporting zero balance (5 by end of month)

-16% overall usage (9% by end of month)

-26% highest single card usage 

 

1 open auto loan

-65% paid

-0 derogs

 

Closed

1 closed credit card - Charged off, fully paid, DoFD 9/2018

2 closed auto loans - no derogs

1 closed personal loan - no derogs

 

1 inquiry/24 months- 3/5/2021 (AMEX)

0 bankruptcies/judgements

0 Collections

 

I'll report back once I get tomorrow's score


@mystro9876 if it's counting properly, reporting a zero balance on the Sole AU would cause a decrease. Go ahead and add her back and see what happens. American Express won't report for 2 to 3 months.

-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 6 of 15
mystro9876
Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

Ok I've added her back...couldn't take the score impact, it really was eating at me.  
I would love to know what caused the decrease, in order to learn from it and understand it better

one they start re-reporting it, I'll provide an update.

Message 7 of 15
mystro9876
Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

@kkboom  Man that sucks! Any ideas what caused it or are you in a similar boat?

Message 8 of 15
Jordan23ww
Established Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP

Sorry this happened to y'all!  Now that you've added her back as an AU hopefully the score promptly bounces back when the report gets updated! 

 




Message 9 of 15
Birdman7
Super Contributor

Re: Removed as AU...Credit Score dropped 30 points?!?!?!? HELPPP


@mystro9876 wrote:

Ok I've added her back...couldn't take the score impact, it really was eating at me.  
I would love to know what caused the decrease, in order to learn from it and understand it better

one they start re-reporting it, I'll provide an update.


@mystro9876 I will be looking forward to the update!

-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 10 of 15
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