Whats a normal drop in points

[Anonymous]

20 points seems normal but what about 30 is that setting off alarms? Im pretty sure a 40 point drop from one month to the next would probably trigger something.

[Anonymous]

The only common thing generally speaking that's going to result in a 20-40 point change from month I would say are fairly big utilization changes.  Other factors like negative items are going to involve more points than that, while others like changes to age of accounts, inquiries, etc. are likely going to result in less than that.  Utilization IMO is really the strongest category that will impact your scores in that point range.  Of course there are other events like paying off your only installment loan, allowing all of your credit cards to report zero, as well as maybe some others that could result in a point change in that range.

If you could offer up some specifics as to what you have going on with your profile, we'll be able to understand more of what you're getting at and be able to offer better advice I'm sure.

[Anonymous]

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@Anonymous wrote:

The only common thing generally speaking that's going to result in a 20-40 point change from month I would say are fairly big utilization changes.  Other factors like negative items are going to involve more points than that, while others like changes to age of accounts, inquiries, etc. are likely going to result in less than that.  Utilization IMO is really the strongest category that will impact your scores in that point range.  Of course there are other events like paying off your only installment loan, allowing all of your credit cards to report zero, as well as maybe some others that could result in a point change in that range.

If you could offer up some specifics as to what you have going on with your profile, we'll be able to understand more of what you're getting at and be able to offer better advice I'm sure.

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Yea its util that changed substantially due to one card not processing my payment properly in a timely fashion before statement cut .. Nothing too crazy but just bugs me that my score took about a 30 point hit. I just dont want to give any creditors a reason to dig around due to tripping a computer algo of some sort. I know a late or something crazy would be a big hit and most certainly digging around .. but just util increase alone is my situation but i guess i just never increased util this much before. Maybe over a period of a few months or even a couple months a gradual drop in score/increase in util but not just lets say 710 then suddenly 680. Im still in a decent score range i think if i went under like 670 or maybe 660 then that might trip an alarm with at least one creditor. Im just trying to get an idea of drastic util changes effect on creditors view of your credit lines. I know i read somewhere 20 point changes are normal month to month and thats what i stay within. Just paranoid of AA i guess ha

[rmduhon]

Depending on the card, you might be able to request an off cycle update. What card is it?

[Anonymous]

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@Anonymous wrote:

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Yea its util that changed substantially due to one card not processing my payment properly in a timely fashion before statement cut .. Nothing too crazy but just bugs me that my score took about a 30 point hit. I just dont want to give any creditors a reason to dig around due to tripping a computer algo of some sort. I know a late or something crazy would be a big hit and most certainly digging around .. but just util increase alone is my situation but i guess i just never increased util this much before. Maybe over a period of a few months or even a couple months a gradual drop in score/increase in util but not just lets say 710 then suddenly 680. Im still in a decent score range i think if i went under like 670 or maybe 660 then that might trip an alarm with at least one creditor. Im just trying to get an idea of drastic util changes effect on creditors view of your credit lines. I know i read somewhere 20 point changes are normal month to month and thats what i stay within. Just paranoid of AA i guess ha

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Utilization's impact on score change is immediate.  It happens the moment your new utilization is reported to the bureau(s).  Nothing is gradual when it comes to utilization and you'll commonly hear the term on this forum that utilization has no "memory," which basically means that what it that the day your utilization changes (and is reported) the score you have at that time will have no bearing at all on your previously reported utilization.

Creditors extremely rarely will care about you bringing your utilization up high.  As long as you are making on-time payments you are meeting the terms of your agreement.  I know someone that has 8 of 9 of their credit cards completely maxed out right now, yet none of the creditors have taken AA against them because they have not missed a payment recently.  If they miss 1 payment, even a 30 day, I'd expect not only the creditor that they miss the payment with to take AA, but others would probably follow suit as well.  People will show high utilization for a cycle or two from time to time for various reasons and then either PIF or return it to a comfortable level.  Creditors don't care about this.  You have nothing to worry about.  Also know that again because of the no memory point, as soon as you return your utilization to the number you were at previously and it reports, you'll get back your 30 points instantly.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Yea its util that changed substantially due to one card not processing my payment properly in a timely fashion before statement cut .. Nothing too crazy but just bugs me that my score took about a 30 point hit. I just dont want to give any creditors a reason to dig around due to tripping a computer algo of some sort. I know a late or something crazy would be a big hit and most certainly digging around .. but just util increase alone is my situation but i guess i just never increased util this much before. Maybe over a period of a few months or even a couple months a gradual drop in score/increase in util but not just lets say 710 then suddenly 680. Im still in a decent score range i think if i went under like 670 or maybe 660 then that might trip an alarm with at least one creditor. Im just trying to get an idea of drastic util changes effect on creditors view of your credit lines. I know i read somewhere 20 point changes are normal month to month and thats what i stay within. Just paranoid of AA i guess ha

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Utilization's impact on score change is immediate.  It happens the moment your new utilization is reported to the bureau(s).  Nothing is gradual when it comes to utilization and you'll commonly hear the term on this forum that utilization has no "memory," which basically means that what it that the day your utilization changes (and is reported) the score you have at that time will have no bearing at all on your previously reported utilization.

Creditors extremely rarely will care about you bringing your utilization up high.  As long as you are making on-time payments you are meeting the terms of your agreement.  I know someone that has 8 of 9 of their credit cards completely maxed out right now, yet none of the creditors have taken AA against them because they have not missed a payment recently.  If they miss 1 payment, even a 30 day, I'd expect not only the creditor that they miss the payment with to take AA, but others would probably follow suit as well.  People will show high utilization for a cycle or two from time to time for various reasons and then either PIF or return it to a comfortable level.  Creditors don't care about this.  You have nothing to worry about.  Also know that again because of the no memory point, as soon as you return your utilization to the number you were at previously and it reports, you'll get back your 30 points instantly.

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Ah I see. Thanks for this and some reassurance as well.

I think I have been maxed before but my limits were A LOT smaller. I am not even close to maxed now with my current higher limits but I am just saying. 10k in credit maxed vs 100k credit maxed I think would make a difference but assuming you are making payments AND/OR you listed a decent income maybe this would still be perfectly fine. Granted you are not just hovering around the same util forever and actually gaining traction in reducing debt.

I think AA is rare you are right or there has to be a bigger reason than simply having your util go up and up. Theres a lot of credit users and only a fraction use these forums I read one time which stuck with me. Even though I think most credit people should be on these forums and maybe probably will be one day especially if they do not use credit to their advantage rather than getting gouged.

[Anonymous]

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@rmduhon wrote:
Depending on the card, you might be able to request an off cycle update. What card is it?

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Change due date? I change due dates once or twice a year just to fit my current situation, but in this case it w a s just a matter of one creditor being behind in the times and a general pain BUT a high limiter, I guess.

All my cards you can make payments virtually anytime weekend holiday does not matter maybe a early evening cut off or late evening cut off but you can be assured the payment is tacked on to the balance for that day. This particular bank you have to basically get your payment in mon thru thurs early evening online too or forget about it. Hint it aint amex disco or chase.

[Anonymous]

Not the due date.  What rmduhon was referring to was requesting the creditor to do an additional update at a point during the month where they typically don't update.  Say they update on the 1st of the month usually and the number they report is quite high utilization wise.  Perhaps on the 5th of the month you pay down your balance significantly.  Under normal circumstances, you'd be waiting another 3+ weeks for that creditor to report your new (better) utilization.  However, depending on the creditor, there's a chance you could get them to report your new lower balance on say the 7th of the month simply by calling and asking.  If they agree, your score could bounce back or increase 3 weeks earlier than would otherwise be the case.  Hopefully that makes sense.

It's also important to understand that dollars aren't a consideration in FICO scoring.  Steve has only one credit card and it has a $500 limit where Chris has only one credit card and it has a $50,000 limit.  Both of them are at 40% utilization on their one card, so 40% aggregate utilization.  This means Steve's balance is $200, where Chris' balance is $20,000.  You and I both know that Chris is in a much tougher place debt wise (dollars) and will likely have a much tougher time paying off his $20k than Steve will his $200, but with all other things being equal these two will possess the exact same FICO score.  It's important to remember that FICO scoring is all about percentages, not dollars.