Why did my score drop?

[Anonymous]

Hi, my Experian Fico 8 score dropped eight points this week and I'm not sure why.  

There were only three changes on my report during that time:

1. An account on which I'm an AU went from 30% utilization to 0%.

2. A store card was added to my report, but not a hard inquiry (I've had the card for a couple of months, but it just reported for the first time this week).

3. My total utilization went from 11% to 1%, due to #1 above.

That's it.  No other balance changed.  I only have one card with a balance, currently.  

I have nine accounts, all credit cards (I don't use them all; just haven't canceled old ones).  One of my cards is a recently-added AU that was on my report when it was eight points higher.  Could Experian have "backtracked" and decided to no longer count the AU card after it being on there for only a week?  The card is in my wife's name, but it shows her maiden name on the card; maybe EX thought it wasn't a legit use of AU?  

[dragontears]

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@Anonymous wrote:

Hi, my Experian Fico 8 score dropped eight points this week and I'm not sure why.  

There were only three changes on my report during that time:

1. An account on which I'm an AU went from 30% utilization to 0%.

2. A store card was added to my report, but not a hard inquiry (I've had the card for a couple of months, but it just reported for the first time this week).

3. My total utilization went from 11% to 1%, due to #1 above.

That's it.  No other balance changed.  I only have one card with a balance, currently.  

I have nine accounts, all credit cards (I don't use them all; just haven't canceled old ones).  One of my cards is a recently-added AU that was on my report when it was eight points higher.  Could Experian have "backtracked" and decided to no longer count the AU card after it being on there for only a week?  The card is in my wife's name, but it shows her maiden name on the card; maybe EX thought it wasn't a legit use of AU?  

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New accounts reporting always drops my scores so I am betting on #2. I would say that you were lucky it was only 8 points, last new card hit I got was 16 points. 

[donkort]

It might have been the store card.

I've had my FICO drop because a store card started reporting.  The effect does wear over time.  

There is a sort of "hierarchy" of credit items, according to FICO.  Store cards and "consumer finance" accounts are frowned upon.  Especially "consumer finance accounts." 

Back in the old days, Household Finance and Beneficial Finance were prominent "consumer finance accounts."  I borrowed from both of them, and defaulted with them, back in the 1980s.

[Anonymous]

Ok, I didn't realize that, thanks.  This is a Target credit card, not like a charge card.  I just figured the AU card going from 30% to 0% would have increased my score.  Perhaps the Target card would have hurt more without the AU going to 0.  

I've read that new cards get a bump at 3 months sometimes; is that correct?  Target posted two months at once, so maybe I'll get some points back next month.  Thanks. 

[Anonymous]

Very true, dragontears and donkort. It's most likely because a new store card is on your CR now. Had that been a HP it would drop your score further. Those points will rise again soon, so I wouldn't worry.

[donkort]

If you are able to use it outside Target, then it's not a store card.  Though I wonder if FICO THINKS it's a store card because of the name "Target." 

I have both a Sears store card (which can only be used in Sears and affiliated stores), and a Sears credit card I can use for virtually any purpose.

[SouthJamaica]

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@Anonymous wrote:

Hi, my Experian Fico 8 score dropped eight points this week and I'm not sure why.  

There were only three changes on my report during that time:

1. An account on which I'm an AU went from 30% utilization to 0%.

2. A store card was added to my report, but not a hard inquiry (I've had the card for a couple of months, but it just reported for the first time this week).

3. My total utilization went from 11% to 1%, due to #1 above.

That's it.  No other balance changed.  I only have one card with a balance, currently.  

I have nine accounts, all credit cards (I don't use them all; just haven't canceled old ones).  One of my cards is a recently-added AU that was on my report when it was eight points higher.  Could Experian have "backtracked" and decided to no longer count the AU card after it being on there for only a week?  The card is in my wife's name, but it shows her maiden name on the card; maybe EX thought it wasn't a legit use of AU?  

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When you add a new card, you (a) reset your age of newest account and (b) lower your average age of accounts. Neither item 1 nor item 3 would lower your score even a single point, so it is likely that #2 is the culprit. But in my experience, when I have lost points from adding an account, the points came back pretty quickly.

[Anonymous]

Thanks for all the replies.  I've only recently joined this site and have learned a lot already.  When you say, "But in my experience, when I have lost points from adding an account, the points came back pretty quickly," how quickly is pretty quickly?  I enjoy the "game" of learning how the scoring works.  

[dragontears]

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@Anonymous wrote:

Thanks for all the replies.  I've only recently joined this site and have learned a lot already.  When you say, "But in my experience, when I have lost points from adding an account, the points came back pretty quickly," how quickly is pretty quickly?  I enjoy the "game" of learning how the scoring works.  

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3-12 months depending on the individual's profile 

[SouthJamaica]

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@Anonymous wrote:

Thanks for all the replies.  I've only recently joined this site and have learned a lot already.  When you say, "But in my experience, when I have lost points from adding an account, the points came back pretty quickly," how quickly is pretty quickly?  I enjoy the "game" of learning how the scoring works.  

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I don't remember but I would guess from 1 to 3 months.