Score dropped almost 70 pts

[Anonymous]

Trying to buy house was told by my financial advisor to play the  credit monopoly because I had a score of 631 But I needed a minimum of 650. So he says open up at least 3 credit cards and keep utilization low. 

So 7 mths ago opened up 2 cards then January this year open up 3rd and have been doing a great job at utilization and even paying more than minimum due and sometime double up on payments if I used the card more than once in that months time. Had over 7 bad credit marks plus a lien on my report., paid 5 of those plus the lien  had bureaus delete them from my report And the other 2 well one is a 283. Debt and one is a 5500.  debt and I have that down to 4500 and decreasing and I see they update the new balance against old so it does show I'm paying. 

So on transunion it shows those 2 adverse accounts and the other 4 one being my car loan are  in the satisfactory accounts with them in green showing never lates 

Now my problem is each month since January' I have watched my score drop over and over to a 564..  That's 67 pts decline I have seen on credit karma 

im just in shock as to why. 

Is it my debt to income ratio because my car balance is 5600.  Plus my other two debts, even though I constantly pay my accounts before do date. Will I see increase soon, does it get worse like this before it gets better? Some help I need advice 

[BigBS]

Welcome to the forum!  Need a little more about the before and after of your credit history to give an informed response.

[Anonymous]

First thing I'd do is get a real FICO score, and not use Credit Karma at all.

You might consider the EQ 04 score direct from Equifax, or the EX 08 / EQ 08 scores available here.  EQ 04 is used in the mortgage business.

Installment loans should not be dragging you down.

Revolving utilization (your CCs) may be an issue if you let your cards report a high balance before paying them off.  Revolving utilization is scored differently than installment utilization, and it's based on reported CC balances.  For example, if you have a $1000 limit on a card, and let $975 report before paying it off, this will do serious harm to your score.