Score went down dramatically

BessTruman · ‎09-25-2021

I consolidated some debt. $10,000 worth. I put it on another credit that gave me a $15,000 credit line. I thought I was doing a good thing. I have not made new debt I just moved it all over to one card. Well...to my surprise my credit score went down 50pts. It has crept back up a bit but it was at 780 now it's hovering around 720. My util is 21%. What's the deal? I have no late payments on my credit and no bankruptcies....nothing. I just moved some debt around.

Red1Blue · ‎09-25-2021

May be it is because 1. you opened new account and it will take few months for the new account to age and scores gain; 2. The accounts you paid off might not be reporting $0 Balance yet. I defer to exports.

simplynoir · ‎09-25-2021

To add to the above already mentioned the utilization on the one card holding all your credit card debt is now at 66% which is getting up there. I don't know how the debt was spread out among your cards before the consolidation but having it be that high is going to cause you to lose some points as well. I still think you did the right thing if the other cards were interest-bearing cards while the current one is running a 0% BT intro offer, better to save money than your scores right now

difringe · ‎09-25-2021

@BessTruman wrote:
I consolidated some debt. $10,000 worth. I put it on another credit that gave me a $15,000 credit line. I thought I was doing a good thing. I have not made new debt I just moved it all over to one card. Well...to my surprise my credit score went down 50pts. It has crept back up a bit but it was at 780 now it's hovering around 720. My util is 21%. What's the deal? I have no late payments on my credit and no bankruptcies....nothing. I just moved some debt around.

Just to add one more thing, credit scores are kinda weird in that if you have a derog (in your case, it'd be the high usage on the one balance transfer card) it hits your score harder than if you have multiple derogs (i'm assuming you had that 10k debt split among multiple accounts). you see it with ppl who already have late payments; their scores can handle another late a lot easier than those that have no late payments at all

stw715 · ‎09-26-2021

Just 9 days ago you posted in your FNBO approval thread that your scores was already 730~ish but only with 15% uti, so when did your score actually dropped 50 points and what other credit activities besides moving some debt around. Not saying they are the cause of your score drop but it would be hard for people to offer much advice if you don't let them see the whole picture.

FireMedic1 · ‎09-26-2021

@simplynoir wrote:
To add to the above already mentioned the utilization on the one card holding all your credit card debt is now at 66% which is getting up there. I don't know how the debt was spread out among your cards before the consolidation but having it be that high is going to cause you to lose some points as well. I still think you did the right thing if the other cards were interest-bearing cards while the current one is running a 0% BT intro offer, better to save money than your scores right now

+1 Just to add as we say around these parts. Finances over FICO.

Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my rebuild after BK from learning here. Started 540's. FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.

SouthJamaica · ‎09-26-2021

@BessTruman wrote:
I consolidated some debt. $10,000 worth. I put it on another credit that gave me a $15,000 credit line. I thought I was doing a good thing. I have not made new debt I just moved it all over to one card. Well...to my surprise my credit score went down 50pts. It has crept back up a bit but it was at 780 now it's hovering around 720. My util is 21%. What's the deal? I have no late payments on my credit and no bankruptcies....nothing. I just moved some debt around.

High utilization on the account with $10k balance