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Why did my score drop with a CLI?

js400021
Established Member

Why did my score drop with a CLI?

After a year and a half of credit rebuilding, I recently lost my mortgage approval because I paid off a loan early in the summer and instantly lost 10 points for that and then another 20 points just for paying a credit card down from $66 to 0. ( I think all cards reported as zero that month.) Since then, I've been watching my score drop slowly but steadily. Not by a lot but always a couple of points a week and it never comes back up. I have 4 cards, keep a zero balance on all except one and pay that one off every month after letting a small balance report. But to no avail. Today, I lost another 2 points because one of my credit cards increased my limit by $1000.  I didn't ask for it, it was just automatically increased. I thought having a higher total credit limit increased scores? I certainly didn't expect to see another drop from this. Can anyone explain why this happened? 

Message 1 of 13
12 REPLIES 12
blindambition
Community Leader
Senior Contributor

Re: Why did my score drop with a CLI?

The CLI most likely coincided with another change. Check report line by line.

Its possible to lose points on closed loan. Was that your only installment loan?

You experienced the All Zero penalty. Continue AZEO.

Message 2 of 13
FireMedic1
Super Contributor

Re: Why did my score drop with a CLI?

If that was your only loan. Theres the culprit. And never have all accounts report no balance or all cards report a balance. FICO dings you for it. If you can get in with NFCU and get an SSL. That will help.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 13
SouthJamaica
Super Contributor

Re: Why did my score drop with a CLI?


@js400021 wrote:

After a year and a half of credit rebuilding, I recently lost my mortgage approval because I paid off a loan early in the summer and instantly lost 10 points for that and then another 20 points just for paying a credit card down from $66 to 0. ( I think all cards reported as zero that month.) Since then, I've been watching my score drop slowly but steadily. Not by a lot but always a couple of points a week and it never comes back up. I have 4 cards, keep a zero balance on all except one and pay that one off every month after letting a small balance report. But to no avail. Today, I lost another 2 points because one of my credit cards increased my limit by $1000.  I didn't ask for it, it was just automatically increased. I thought having a higher total credit limit increased scores? I certainly didn't expect to see another drop from this. Can anyone explain why this happened? 


The increase in credit limit did not cause a score drop.


Total revolving limits 663000 (585000 reporting) FICO 8: EQ 716 TU 747 EX 713

Message 4 of 13
Birdman7
Super Contributor

Re: Why did my score drop with a CLI?

The credit limit increase did not cause the score drop I second that. Likewise if you lost the points for reporting all zero you should’ve gotten them back the moment the card reported a balance.
-Scoring wisdom: Credit 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,
Anonymous’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 5 of 13
BmoreBull
Established Contributor

Re: Why did my score drop with a CLI?

Where are you getting your scores? Are they FICO or Vantage?



Starting Fico Scores:November 2019

Current Fico Scores: January 6, 2021
Goal Scores: 700 across all three
Message 6 of 13
js400021
Established Member

Re: Why did my score drop with a CLI?

I'm getting my scores from Myfico.com. The notification just says "All Bankcard account(s) credit limit increased" -1 pt. and details the card that has the $1000 increase. Makes no sense that I was penalized for that.  In answer to the other question, I do still have an open school loan and had this open when I paid off the second loan.  I had read on here several times that it wouldn't drop if there was another open loan so I was pretty miffed when I saw that big drop. My school loan it small but still above 80%. 

Message 7 of 13
Birdman7
Super Contributor

Re: Why did my score drop with a CLI?

The notifications are not necessarily connected to the score change.

If the other loan was paid down then paying it off increased your aggregate installment utilization and could’ve caused a score decrease.

 

at two points it's really too small to tell a lot of times

-Scoring wisdom: Credit 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,
Anonymous’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 8 of 13
Credit4Growth
Valued Contributor

Re: Why did my score drop with a CLI?


@Birdman7 wrote:

The notifications are not necessarily connected to the score change.

If the other loan was paid down then paying it off increased your aggregate installment utilization and could’ve caused a score decrease.

 

at two points it's really too small to tell a lot of times


@js400021 I agree with this.

 

 

I got hit with a score decrease after closing my SSL (15K loan with a 500+ balance).  Open SLs (9 of them) are the only open loans remaining with individual utility of approximately 80 - 85% each.  The SLs were appro

IMO, this was a big change in my aggregate installment utility.

I went form an aggregate loan utility of about 45% up to approximately 69% (23K owned on 48K to 22K owed on 33K)

Sadly, when seeking score increases one could expend a great deal of energy and time only to find out there is so much more to learn about Fico factors.  

|| DTI 8% || Mortgage Scores: EQ724, Tu694, EX726 ||
Inquiries: EQ/TU/EX (0 / 2 / 1) - 0/6 - 0/12 - 3/24 ||


Next App on the list is ???
Last apps: (2) August 18, 2019
Garden goal - Unknown date, 2021
Going for Sapphire spade - May 18th 2021

Dirty/ Thick/ Aged/
Message 9 of 13
BrutalBodyShots
Super Contributor

Re: Why did my score drop with a CLI?

Another classic MF Fail in score changes not being related to the provided alert reason, a problem that has been ongoing for years.

Message 10 of 13
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