Why do my scores keep dropping?

[XAVIERSMAMA]

Hello all new to the forum and really need your help.

I had a BK discharged in 11/07, am looking forward to purchasing my first home but here is the issue.

My credit scores were EQ 656, EX 671 and TU 606 as of 4/09.  They have steadily fallen since.  The first big drop came when I had a collection post to my report.  The collection was from a debt that was discharged in my BK but because the amount is listed different than what's on my LOC and the debt was sold to various collection agencies after the OC the info doesn't match and when I disputed it, it was denied.  I was told by EQ that it's scheduled to fall off my report in 12/09 so I'm not concerned about it.  I have 2 CC's that I use and pay off each month and one month I miscalculated the day they reported so my score dropped again because my utilization appeared really high (went on vacation and didn't want to bring cash with me, lesson learned).  Every month since my score has been steadily dropping even though now my I am using less than 10% utilization.  What is going on?  I want to buy a home shortly after the 2 year mark of my BK discharge so I want to know what I can do to bring my scores up.  Any help would be appreciated.  Also, how come my score dropped when my utilization went up, but they didn't go up when my utilization went down?  This is so confusing.

Current Scores TU 576 EQ 582 EXP 583

Thanks in advance for the help

[llecs]

Welcome to the forums!

Where did you get your scores from? I ask because as of last February, it is impossible to pull your EX FICO score from anywhere, though you can get it from a CU in PA called PSECU and you can also get it from your lender at mortgage app time. If you got it from any other source, and if TU and EQ were from the same place, then you may want to pull your TU and EQ FICO scores from here. Your FICO scores would be totally different (perhaps higher).

Per CC utilization, you'd want one to report $0 and the other to report more than $1 but less than 9% of the CL.

Per the CA, if you have the $$$ to PIF, if you had to, or if SOL expired, then send the CA a DV letter. If they verify and you agree, then send a PFD if you'd like it off earlier.

[XAVIERSMAMA]

I am in a first time homebuying program and they pull your credit scores so they are the same scores that the lenders receive.  I only have 2 credit cards.  A walmart card with an $800 limit and $0 balance and a mastercard with a $600 limit and a $45 balance.  How long does it take after they report to cause a change in FICO score?  When the balances first reported my score dropped  almost immediately.  I have had no late payments since my discharge.

[Anonymous]

Score changes due to reported changes in UTIL are immediate once the TL has updated.

Your score dropped because of:

1) Reporting of a new derog - a CA is still a CA even if it is paid, and

2) UTIL % increase.

One of those is easy to fix, the other not so easy. Fortunately in your case time is on your side.