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ann9999

Unexplained Drop in Equifax Score

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I know creditkarma is not considered an accurate source of info, however I use it as a baseline and just checked today to see a 22pt. drop in my Equifax score for no apparent reason. My score was at 658, then dropped six points down to 652 where it stayed for a while. Now, it just dropped down to 630. What am I doing wrong??? There has been nothing negative added to my reports. The only thing I can think of is that I recently opened a new Capital One card but I literally just received it in the mail. My other card only has a limit of $300 and I paid it down to $25 right before they reported on 8/10. I'm really confused and trying very hard to clean up my credit but it's like taking two steps forward and three steps back . . .

 

Any suggestions as to why this 22pt. drop?

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I know creditkarma is not considered an accurate source of info, however I use it as a baseline and just checked today to see a 22pt. drop in my Equifax score for no apparent reason. My score was at 658, then dropped six points down to 652 where it stayed for a while. Now, it just dropped down to 630. What am I doing wrong??? There has been nothing negative added to my reports. The only thing I can think of is that I recently opened a new Capital One card but I literally just received it in the mail. My other card only has a limit of $300 and I paid it down to $25 right before they reported on 8/10. I'm really confused and trying very hard to clean up my credit but it's like taking two steps forward and three steps back . . .

 

Any suggestions as to why this 22pt. drop?

When you are trying very hard to clean up your credit, remember that those you are targeting will try very hard to keep your reports dirty particularly JDB so that you will be forced to deal with them. Many things can make your scores drop including having high utilization on individual cards and total balance, having balances on multiple cards, CAs and JDBs updating negative accounts hence making these negatives look more recent. Your scores suggest there are issues with your reports, until these issues are remedied you will ride a roller coaster in terms of your scores

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I know creditkarma is not considered an accurate source of info, however I use it as a baseline and just checked today to see a 22pt. drop in my Equifax score for no apparent reason. My score was at 658, then dropped six points down to 652 where it stayed for a while. Now, it just dropped down to 630. What am I doing wrong??? There has been nothing negative added to my reports. The only thing I can think of is that I recently opened a new Capital One card but I literally just received it in the mail. My other card only has a limit of $300 and I paid it down to $25 right before they reported on 8/10. I'm really confused and trying very hard to clean up my credit but it's like taking two steps forward and three steps back . . .

 

Any suggestions as to why this 22pt. drop?

When you are trying very hard to clean up your credit, remember that those you are targeting will try very hard to keep your reports dirty particularly JDB so that you will be forced to deal with them. Many things can make your scores drop including having high utilization on individual cards and total balance, having balances on multiple cards, CAs and JDBs updating negative accounts hence making these negatives look more recent. Your scores suggest there are issues with your reports, until these issues are remedied you will ride a roller coaster in terms of your scores

 

 

+1,000.

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FIrst - IGNORE CREDITKARMA SCORES! Especially with dirty reports, it's very common to see your CK scores drop in response to a change that actually RAISED your FICO scores. Multiple the freckles on the back of your hand by the nose hairs in your left nostril, and the number will be no less accurate an estimate of your FICO scores than the CK score is.

 

 

As for score volatility - while I was in the middle of my clean-up, and in that 630-680 range, it was common to have my scores jump or drop 20-30 points from month to month, all while I was making positive changes to my overall credit profile. This is due to a mix of doing positive things that have a short-term negative effect (like adding a new account), and from being "rebucketed" as you shed negative items and build positive history. ("Bucketing" is like grading on a curve - with multiple, overlapping curves)

Edited by JeffeVerde

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FIrst - IGNORE CREDITKARMA SCORES! Especially with dirty reports, it's very common to see your CK scores drop in response to a change that actually RAISED your FICO scores. Multiple the freckles on the back of your hand by the nose hairs in your left nostril, and the number will be no less accurate an estimate of your FICO scores than the CK score is.

 

<snip>

 

Case in point - CK's been reporting Equifax at 25 points higher than my actual FICO's. Last week I had $26k in new charges report. FICO dropped 11 points, while CK dropped 44 points.

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What am I doing wrong???

If you don't have a creditor that uses an EQ VantageScore then the answer is worrying over your EQ VantageScore. If you have creditors that use an EQ FICO then monitor the model(s) that they use. Don't assume that your EQ VantageScore is equivalent to an EQ FICO.

Edited by takeshi

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I had about a 30 point drop in my scores last winter. I couldn't find anything to account for it, until I realized I put my student loans under forbearance. I did a simulator on myfico, and it said as soon as I begin paying again, the score will go back up that 30 points. I realize that is a simulation, but it was the only thing I could find that had changed during that time.

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