score drop

[PRILEY]

Hsbc my favorite credit card company canceled my card for non use after the cut the limit to $300 and my score dropped 3 pts. Not a big drop but I have cards with discover $10400 BoA $12,000 and a Home Depot at $6000 I am wanting to get Equifax to 700 i was at 697 now at 694. Just wondering how such a small card could do anything to a score. I also have 2 tax liens that should come off this year. I imagine that will help some, not sure how much they are counted after this long.

[jackg]

1. It's likely that your average age of accounts dropped when the card was closed. That can cause a score drop.

2.By losing that account it could have caused the number of accounts reporting a balance to exceed 50% which can cause a score drop.

[Anonymous]

AAoA takes into account open and closed accounts (so that wouldn't have changed because the account was closed), but UTIL could've taken a hit.

[haulingthescoreup]

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jackg wrote:

1. It's likely that your average age of accounts dropped when the card was closed. That can cause a score drop.

2.By losing that account it could have caused the number of accounts reporting a balance to exceed 50% which can cause a score drop.

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1. It's not this, because as writemikep said, it's still counted in age for up to ten years after closing.

2. It's probably this one.

If you pulled the report for the new score, you can compare the negative factors on screen two with those on the previous report. These negative factors are the codes that accompany full credit reports, and there are a bunch of them. When they shift in order, or one appears or disappears, it means that your overall credit report has changed in some way so that your scores changed.