Why Did My Credit Score Drop?

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Why Did My Credit Score Drop?

Sometimes your credit score shocks you by dropping for seemingly no reason. This can be discouraging and frustrating if you can't pinpoint a cause. While Credit Karma doesn't calculate your credit scores, we can point out some of the factors that can affect your score, and you may be able to trace a drop in your score to one of these factors.

1. Credit Utilization

Carrying a significant amount of debt on your credit cards could be one reason why your score dropped. Your credit card utilization rate is a snapshot of how much credit you're using, calculated by dividing your total credit card balance by your total credit limit. If you're relying too much on credit, a lender could view that as a bad sign.

Possible Solution: If you have the means, you can try a couple of different approaches to paying down debt. For example, you could use the debt snowball method, where you pay down your small balances first to gain momentum and make your debt seem more manageable (while continuing to make minimum payments on your other debts).

You could also ask your card issuer for a credit limit increase on an existing account, although whether you get this is at your issuer's discretion. Alternatively, opening a new credit card would also increase your total available credit.

You can monitor your current utilization by connecting your financial accounts.

2. Payment History

Since creditors are trying to judge how likely you are to pay back your debt, reliability is important to them. If you miss even a single payment, your score could take a major hit, especially if you've never missed a payment before.

Possible Solution: Moving forward, see whether your credit card provider will allow you to set up automatic payments, or link your financial accounts and turn on bill reminders to help avoid missing future payments. Continue monitoring your credit report as well to ensure all of your payments are being reported as on-time.

3. Derogatory Marks

If you experienced a major drop in your credit score, a derogatory mark could be the culprit. Tax liens, accounts in collections and bankruptcies are among the most serious things that can happen to your credit score. Since they represent major delinquencies, they can reflect poorly on your ability to take care of your finances.

Possible Solution: Check your free credit reports with Credit Karma to investigate whether these derogatory marks actually belong on your report. If they don't, consider filing a dispute.

4. Average Age of Open Credit Lines

The longer you've had credit accounts open, the more creditworthy you generally appear to lenders. If you've closed an account recently, some scoring models won't factor in your closed account when determining your credit age, so your credit history may appear shortened and your score might drop. Opening a new account could also lower the average age of your accounts.

Possible Solution: Before opening or closing an account, use Credit Karma's Credit Simulator to see how the action could potentially affect your score, and be prepared for a change when you pay off a loan. If you're not sure if you should close an account, consider the pros and cons of doing so.

5. Total Accounts

While it's not the most important part of your credit score, having a good mix of different types of credit and an appropriate number of open accounts shows lenders that you have the experience to pay off debt responsibly. If you've just paid off the only loan you have, your credit mix might look a little less diverse to lenders. Similarly, if your total number of accounts suddenly skyrockets or nosedives, that could indicate that you're financially strapped and need credit or can't afford your existing credit accounts.

Possible Solution: Before you open or close any accounts, you may want to check your credit reports, where you can see the distribution of your open and closed accounts. Doing so will help you be aware of where you stand. If you're thinking about opening up new credit cards, don't fall for every offer out there - only open ones that you need.

6. Hard Credit Inquiries

Generally, when you apply for a new form of credit, whether it's a credit card, auto loan or mortgage, a hard inquiry is placed on your credit report. Normally, a single inquiry would initially only cause your score to drop a few points (if at all). However, if you've applied for several accounts in a short period of time, you could appear desperate for credit, and the damage from those hard inquiries might add up.

With that said, some scoring models (but not all) allow for rate shopping on auto or home loans without any additional damage.

Possible Solution: To avoid unnecessary inquiries, only apply for credit when you need (and can afford) it, and try to focus on cards that you have a good chance of getting approved for. Credit Karma shows you your estimated Approval Odds before you apply, so you can make a more informed decision.

If you're looking for a loan and need to rate shop, consider looking through consumer reviews to narrow down your choices. You can also consider getting pre-qualified or pre-approved for credit, so you have a better sense of what you'll be approved for before you apply. By doing your homework, you may be able to avoid unnecessary hard inquiries.

Building Your Credit Knowledge

Credit scores often seem like they're shrouded in a veil of mystery. Now that you know what might have brought down your credit score, try your best to keep an eye on your credit health. Even though these situations can't always be avoided, understanding their impact could help you make more informed decisions.

Editorial Note: The opinions you read here come from our editorial team. While compensation may affect which companies we write about and products we review, our marketing partners don't review, approve or endorse our editorial content. Our content is accurate (to the best of our knowledge) when we initially post it, but we don't guarantee the accuracy or completeness of the information provided. You can visit the company's website to get complete details about a product. See an error in an article? Use this form to report it to our editorial team. For questions about your Credit Karma account, please submit a help request to our support team.

Advertiser Disclosure: We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

All Comments

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2 Contributions
865 People Helped

Helpful to 865 out of 916 people

Ummm, I guess with everyone complaining about CreditKarma seemed to have forgotten that it is a free service and is meant to be a guide, not an end all be all.  If you don't like it then you should spend the money and get the credit tracker memberships from one or more of the big three credit bureaus.  I'm amazed that people don't appreciate a place where you can look at your credit for no cost and get a good idea of where you might have problems.  It's free!!  Nothing that is free is going to be as good as something that you pay for.  

Reply by
shanseeme

1 Contribution
203 People Helped
Helpful to 203 out of 208 people

I get my score free with capital one and its very close to credit karma so it is a very good deal for free

Reply by
grannew

1 Contribution
51 People Helped
Helpful to 51 out of 58 people

I agree with you Enter Your Reply

Reply by
craigwenxian

3 Contributions
228 People Helped
Helpful to 225 out of 233 people

I get free scores and details from two of my CC companies as well as creditkarma and creditkarma is more up to date. I am not sure why  credit details from CK would be more up to date than the other providers! CK appears to update weekly with fresh data whereas the others only do so monthly and may even be a month behind to boot. 

Example. I FK'd up for the first time in a decade last month. We had to take an emergency flight for a family matter. As always I used my AMEX Skymiles card. This card has a low credit line of $1,200 which has never been a problem before as I usually pay it off before the next closing date. Due to the stress of the situation I forgot to eyeball the upcoming closing date. The two roundtrip tickets plus in flight meals pushed me just over the limit. Normally not a problem except the closing date coincided with the return flight and I did not realize it until the next day. BAM!!! Even though my total utilization for last month was under 10% that one event dropped my score by 87 points! 

That was a week ago and creditkarma showed me that drop almost immediately. The other sources using the same credit agencies are still not showing the score drop although they are showing the exceeded credit limit! 

I did immediately pay off that card and have 1 day to wait until the next creditkarma update. I will be curious to see if they pull new data on that balance before the next closing date. 

What I am hoping is that my scores jump back up by the same amount as fas as they fell. 

Another thing I have found out and this is stupid in my opinion, is that individual credit card utilization is a larger factor in your score than total credit utilization. Also having credit cards you never use (zero balance) is also negative. It seems the best scores are attained by carrying a balance between 1% and 3% on each card you have for at least one day past the statement closing date. Going into the closing date with a zero balance will show that card as having a 0% rate of utilization even though it did have activity. 

Reply by
cja8565

1 Contribution
0 People Helped

exactly lol its a yard stick, not meant to be an erlenmeyer flask.  If you don't like it then stop being cheap and go pay for a site..

Reply by
bkinney5

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0 People Helped

I totaly agree. This service is free so lets be nicer people. I for one am happy for Credit Karma and their info. Thank You  Credit Karma.

Reply by
memilien

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0 People Helped

Right on the money jwilkins35!   I've had Credit Karma for a couple of years now, and I've learned that what they say is your score is generally 20 points below what the actual credit bureau score is.  With that in mind, you can keep track of your credit very well with this free service.  You do get what you pay for, but I think that Credit Karma is an excellent tool for those that may not have the means or just want to keep an eye out for any surprises. 

Reply by
rexangelic

1 Contribution
0 People Helped

Amen Brother! I am 66 years old and if I have learned only one thing in Life that is that the most ungrateful people are the ones clamoring about what's wrong with all of the stuff they've gotten for free! Jeeze! You feed a hungry 'Mongrel Dog' and it turns around to bite the hand that fed it. Amazing! And I can guarantee you that those same kind of people are almost always "part of the problem and never part of the solution." Ungrateful to the end!

Reply by
Silkytg

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0 People Helped

Good post, however, I am with Veldemere where he/she says "Great incite. The credit bureaus and the companies that extend credit should be tried, convicted and jailed. And Creditkarma is no better as it relies on information from credit bureaus. Catch 22."  

I say --It seems no matter whether you pay your loans on time or have a collection, if it's with the same creditor, it's put in the same catagory "collections".  Since I am in a standoff with my bank on ONE (1)  paid loan, but have TWELVE (12) paid off "on time" loans with the same bank, they just put them all in collections. It seems like the credit reporting agencies are in such a hurry to post the credit issues on someone's credit report that they don't read that because you owe Joe Blow on one loan, doesn't mean the other 12 paid on time loans with Joe Blow are bad as well. 

Reply by
glennissr

1 Contribution
0 People Helped

" Nothing that is free is going to be as good as something you pay for"  Not true ..... My mothers love was free and you could never buy it......   :-)

Reply by
pappabear1971

4 Contributions
1 Person Helped

I appreciate a free site to check my credit score but, when this site is saying i have a 581 when I ACTUALLY have a 657, thats a HUGE difference. How is anyone supposed to use it as a guide if they are so far off the mark??? 

Reply by
gmni18

2 Contributions
1 Person Helped

When people subscribe to to programs like Credit Karma, they need to learn how to use the programs in order to get the most from them. 

Reply by
ofthebridge

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0 People Helped

I agree...too many people expect the world for nothing. Credit Karma is actually a pretty good source AND IT"S FREE

Reply by
giant59

1 Contribution
1 Person Helped

I've learned not to apply for a new card KC feels I have a "GOOD" chance of getting ( I've been denied before ) but today I applied for a card KC thought I'd have a "VERY GOOD" chance of getting and once again, a denial. I won't try again based on KC's advise!!

Reply by
kittenladyt

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0 People Helped

to shanseeme, you have to have a capital one card in order to get the "free" score so not really free.

Reply by
badfriend

5 Contributions
4 People Helped

Enter Your Reply 

I have used Credit Karma for a few years and every since then, I can see my credit score when ever I want to morning noon or 2am, this  is a good thing to me just saying. They have all my information correct and that's a great thing, some things I even forgot about. Now with that being said I will keep Credit Karma  on my computer and use them every chance I get to see if a debt is off of my report or if something is incorrect I can address that also, THANK GOD FOR CREDIT KARMA   

Reply by
Syed1969

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0 People Helped

Enter Your ReplyAgreed! It's FREE dudes what else you need. This is not the right place or Forum to talk about paid credit tracking agencies.

I always got the best and near to accurate results from Credit Karma.

Syed

Reply by
dstunner

1 Contribution
0 People Helped

I actually use Credit Karma and feel that it is a really good tool and it's  free.  I used Credit Karma when I was in the process of purchasing my home and the credit score Credit Karma reported was very close to my accurate Credit Score.  I think Credit Karma provide you with a lot of information regaring your credit score, i.e., items in collection debt ratio.  Like I mentioned I really appreciate being able to use a free site that provides a lot of information surrounding your credit score.

Reply by
sidley9

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0 People Helped

You are right, credit karma is a service. They have no control of the results of their inquiries. They simply provide the results for you do do with whatever you want. AND checking regularly could also let you know if someone is accessing (or trying to access) your credit. I think its a great service, and I am sure glad its there. AND FREE! Thank you.

Reply by
msila

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0 People Helped

I made a large payment on one of my cards and my score DROPPED ! This is insane !

Reply by
rradina

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0 People Helped

Wow @jwilkin35 -- nothing is free.  Here's CK's business model from Wikipedia:

"All of Credit Karma’s services are free to consumers. Revenue from targeted advertisements for financial products offsets the costs of free credit reports, credit scores and credit monitoring."

You might also want to check out their privacy policy:  https://www.creditkarma.com/about/privacy

They share with parent, subsidiaries and affiliates for purposes of providing "services" (i.e. advertisement) to us.  They also share information with external hird parties to analyze and compile statistics on us.

Ever heard of this famous widdom?  "...first take the log out of your own eye, and then you will see clearly to take the speck out of your brother's eye..."

Reply by
rwellence

1 Contribution
0 People Helped

Excellent point jwilkins35!!!!  I Love this site and it has helped guide me in a better direction as far as trying to rebuild my credit. I am THANKFUL that someone was KIND enought to allow us to use this tool for FREE!!!!  How can you complain about FREE, well I guess now and days we should expect ignorant behaivior!!!! Thanks again Credit Karma, you all are AWESOME!!!!!!!

Reply by
Tamogram

2 Contributions
0 People Helped

Well said!!

Reply by
Tamogram

2 Contributions
0 People Helped

Well said!!

1 Contribution
98 People Helped

Helpful to 98 out of 104 people

my score droped 44 points just beacuse i paid everything off. why should i pay interest when i can pay my bills ontime???????????????????

Reply by
DrMikeb686

1 Contribution
49 People Helped
Helpful to 49 out of 53 people

You may come across a situation in the future such as an emergency when you could need a strong credit rating. That's the only reason I can think of for you to carry some debt. It is admirable that you pay your bills on time, and inane that you would be punished for it, but that is the way the system currently works. 

Reply by
BudnViv

1 Contribution
48 People Helped
Helpful to 48 out of 58 people

I am so glad you wrote in.  We have about $10,000 in credit card debt.   I have been thinking about taking one of these offers we constantly receive in the mail for a loan to bring everything down to zero, have one convenient monthly payment but keeping all our accounts open.....But use them for "little things" such as trips to the drug store, etc.  But if my credit score is going to nosedive with a plan like this....I am doubting the wisdom of this plan.  Any sound thoughts about the repercussions of moving forward with this idea?

Reply by
CruisingNOhio

1 Contribution
16 People Helped
Helpful to 16 out of 18 people

Enter Your Reply   Be patient.  It will go back up! I pay all of my accounts in full every month.  Pay them off, but don't close them unless there is a yearly fee - then close them!!!

Reply by
Avelode

2 Contributions
0 People Helped

Did you close any accounts? if you close more than 1 credit card per year your score drops.

Reply by
poolpool

4 Contributions
0 People Helped

Enter Your Replysame here... never late open 6 accounts to show i can pay off pn time, wham off 50 points ... Needed 5 k  in credit .. income is 33 k ... they dont care... 

1 Contribution
35 People Helped

Helpful to 35 out of 40 people

I'm shocked....My credit score went DOWN, even after paying a few things off.  What is going on ?   I'm at a loss, of what to do.  You pay some things off, and your score goes down ?  What gives ????  I will admit that my score is not good. ( do to certain things that happened in my life ) but what do you do when you are trying to pay down your debt...I'm 65 years old......Maybe I should go back to just paying the minimum and leave the rest of my money in my pocket.  For some reason you can't win for trying !!

Reply by
oneoldcurmudgeon

2 Contributions
19 People Helped
Helpful to 18 out of 24 people

When you hit 65 years the credit game gets tougher because the lenders think you will die and they will get stiffed with the balance you owe.

Reply by
dbowencredit

1 Contribution
1 Person Helped
Helpful to 1 out of 11 people

Enter Your Reply  due to not do to

Reply by
iluvskittles83

2 Contributions
18 People Helped
Helpful to 14 out of 15 people

I agree. I'm at a point where I about to giveat up on the credit thing. Not worth the headache.

Reply by
LuapYllier

2 Contributions
0 People Helped

The whole "credit score" is a device created by companies who give out credit to not only track your credit worthiness but to keep you in debt. the score tells them not only who is less risky but also who is more likely to use debt and thus be a source of income for the companies offering credit. your score will go down when you pay off or close accounts because from thier point of view you are a less lucrative customer. You are not paying interest. You recieve the highest score by having many long term accounts that always have a balance to pay interest on, always get paid on time, and never fill up or go over the limits. From the providers point of view you are grade "a" prime meat.

1 Contribution
313 People Helped

Helpful to 313 out of 379 people

I do agree that having your score drop due to paying off a mortgage is stupid, but I'm not a banker.  I find it strange though, that people are bothered by the Kredit Karma score being lower than the "big three" credit scores.  Since no financial institution I deal with uses Kredit Karma to check for credit score it really shouldn't make a difference.  I've had them deny me a loan because my score was too low, only to turn around and contact me within a week to finance a loan through them identical to what I had requested but at their convenience (I never accept those offers because they don't deserve my buisness if that's how they want to treat me).  I'm getting to where my debts are all getting paid off, and anything I want, I will just pay cash for.

Top Contributor

Reply by
1MeMyselfandI

70 Contributions
1783 People Helped
Helpful to 332 out of 375 people

Hello Hawggman,

 Yes, I agree about the financial instutions do not use Credit Karma's credit scores. Since Credit Karma gets it's credit information from TransUnion, everyone can use Credit Karma as a tool to monitor their credit, but let us not forget to check the other two Credit Bureas (Eqifax and Experian) at least once yearly, I would also pull the free TransUnion Credit report as well, just to confirm the information.

However Credit Karma does not use a FICO scoring sytem to calculate credit scores, as they are not accurate. You will be happy to know that out of everyone I have contacted, Credit Karma's Credit Scores are lower then the three Credit Bureaus credit scores (Experian. Eqifax, TransUnion). So do not get too upset when you see your scores are lower then the "THREE CREDIT BUREAUS"! This works out in your favor!

Credit Karma is a good tool to monitor your credit and to get an idea of how your credit and credit scores are doing (Reminder Credit Karma's Credit Scores are usually lower the the credit bureaus)!

*Just remember if you pay cash for everything and you do not use credit, your credit score will not remain in a goodstanding, as credit scores are made from usage of credit (Utilization, History, Age of credit, Payments, Amount of account, derogatory marks, and credit inquiries)! So if you have an emergency like need to fix a home, need to fix a car, purchase a home, death in the family (funeral expenses), etc. and if you do not have the cash set aside for these things, then you may need CREDIT to help you out of these situations!

I used to pay cash for everything too, until I wanted to improve my credit to purchase a home and a business! Then I was forced to get into getting and having credit.

I wish you the best!

Wamest Regards,

Debra An

Reply by
plequerre

3 Contributions
82 People Helped
Helpful to 82 out of 105 people

This is another scam.

If I get a CC with "x months same as cash offer", of course I'm going to pay it off on-time to avoid retroactive interest, but this will impact negatively my Credit Score.  I've had a perfect Credit history for more than 25 years but Credit Karma only considers the active lines of credit which gives me an "F".

Doesn't make any sense to me.

Reply by
sexychelle44

3 Contributions
102 People Helped
Helpful to 83 out of 99 people

 i totally agree with you. I paid off my mortgage that i had been paying on for 12 years and my score drops, thats just stupid

Reply by
Polacostee

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

CreditKarma does a cumulative score BUT its always good to check TransUnion as well....just to make sure all of the information has made its way over just go to www.yourtransunion.com and then come back.

Reply by
brigettgladden

5 Contributions
22 People Helped

I'm using Dave Ramsey's plan.   I just paid off $6,000 of credit cards about 3 weeks ago.   My score jumped 18 points about a week ago and then just dropped today.   Very soon, I will have everything paid off with enough cash saved up and won't need their credit scores.   It will feel so good!!

Reply by
scalos926

2 Contributions
89 People Helped

I try to use my credit cards for the rewards, and money back.  I can make money using my credit cards this way and when

the payment is due, I have the choice to pay them off and not get hit with interest.  I had a bk 5 yrs ago, and it's taking me a long time to get to 710 score.  I pretty much have all of the credit cards I will need, so now I'm going to only use them in emergencies.  The key I think with credit cards is to use them all once in awhile, but make sure all of them get used even if it's just a small amount.  If you use most of them, I'm finding out that my score stays the same or goes a little lower, but if I use them all my score continues to go up.  I really think this credit game sucks for the most part.  Good luck with your score!!!

Reply by
caesarnichols

1 Contribution
0 People Helped

If kredit karma shows lower scores, then that is better for me. I'll work harder to get it up, and it might not be that low in the long run!

3 Contributions
1134 People Helped

Helpful to 227 out of 248 people

One thing that Credit Karma forgot to add to their list is that your score will be artificially lowered when 1)  invalid and inaccurate information is added to your report and 2) the invalid and inaccurate information is subsequently REMOVED from your report.  If you run your score BEFORE the invalid and inaccurate information is added to your report, and run your score again AFTER the invalid and inaccurate information was REMOVED from your report, your score will not increase back to where it was initially - even when NOTHING else changed on your report.  This recently happened to me, and I've tried every single thing I can think of to get it resolved, but there's not a single place in the country who is willing to speak about it.  I've contacted the FTC, the Comsumer Financial Protection Bureau, my Attorney General's office, I've consulted with a Consumer Protection Attorney, I've called every single Senator for my state and contacted my local Senator.  No one is willing to help.  In fact, I was told by the attorney that I do not have a "private right to act" (i.e. sue) for damages related to my score being artificially lowered. 

I was preapproved for a mortgage with a true FICO mid score (from my mortgage company) of 785 and put down a $6,000 non refundable deposit.  One month later I was notified that my score had dropped 70 points due to one of my lenders reporting me as being 120 days.  I had never (EVER) been late (again, EVER), so I called and asked why.  They told me it would be corrected.  I called TU and also filed a dispute with them.  A few days later I called TU to check the status of the dispute and was told that my lender had agreed the information was erronous and it had been removed from my credit.  I then immediately had my lender run my credit again (I needed to anyway, since my score was only good for 90 days and my house wasn't going to be complete within those 90 days), and found out that my score did NOT return back to 785 - not even close.  It went to 736, so a 49 point loss. 

Nothing else changed on my report.  I called FICO and asked them why my score didn't return to 785, and I was told it was because a late payment I had 2 years earlier started hurting me again, but that same late payment wasn't hurting me when I got my initial score of 785.

Credit scores are supposed to be based ONLY on information that's in your credit report.  I think my situation PROVES that information outside of your credit report is being used to calculate your score.

What an absolute freaking scam.

So, now that my score has dropped, my APR is increasing along with my PMI, so I'll end up paying over $100/month extra just because my score was artificially lowered.  Oh, and because I don't have a "private right to act", not a single entity is going to be held financially responsible for this atrocity.  I just have to take it up the *&*^#@ and like it.

Reply by
Granma08

1 Contribution
25 People Helped
Helpful to 25 out of 28 people

Unfortunatlly in this country, the cr bureau & the financial community think the credit bureau is god. They have only recently started using peoples middle name to help identify those who use their middle name in families who all use the same first name but use diff middle names. God Bless America anyway!

Reply by
Rarb

1 Contribution
9 People Helped
Helpful to 9 out of 9 people

Wish I had read this earlier!

Reply by
BunnyWilder

2 Contributions
6 People Helped
Helpful to 6 out of 7 people

Enter Your Reply Well, we all know whose artificial currency is being used in these credit agencies. All you can do is just suck it up if you want to play their game. Its funny when you think about it, money really isnt that importatnt because cash payments for the important thing are just not possible. Credit is used for everything, and yet it is an artificial construct. Crazy old world aint it? Oh, and I really like CK for what they do. When I started working on my credit their tips and little helpful hints on where to get more information were great! Free service worth every penny, but they are pretty informative. Thanks Ck, and sorry bout what you going through. Been there. Mine got dropped 71 points, got resolved, and rose back 62 points. close but not a winner.

Reply by
Maria1372

1 Contribution
0 People Helped

This just happened to me ! Almost exactly. Now knowing the outcome of contacting all the "helpful Proction Bureaus" i will spare my effort and "take it up the A$$ also ! ITS CRIMINAL. HOW WE THE PEOPLE DO AS WE ARE ASKED to do for great credit, do so, and still lose out after trying so hard to do the right thing.

Reply by
piscesgirl7109

1 Contribution
0 People Helped

I had the same thing happen (supposedly because an Emergency Room Doctor's Service couldn't get the correct mailing, phone, or insurance information from a hospital I went to.  My scored dropped over 98 points in one day and now, 6 months later, it's still not corrected on my score.  I think the BIG BANKS have things happen so they can charge more interest.  Isn't it funny that it didn't happen until you applied for the mortgage loan?????  Good luck. 

Reply by
Steven3068

1 Contribution
0 People Helped

I thought I was being targeted for disputing some errors on my credit report when my credit score was 729 before the dispute and now 584 after the dispute.  I thought it must be some kind of computer error but after reading what happened to clphillips72, I don't actually feel any better but I don't feel targeted anymore.  My advice to anyone considering disputing or updating and information with the credit agencies TRANSUNION, EQUIFAX and, EXPERIEN... WARNING!!! your credit score will go  down!!!!!!!!!!

8 Contributions
18 People Helped

Helpful to 14 out of 15 people

If anyone from CK goes to the community forums they will see that many people had dramatic drops in scores despite improving their credit.  CK needs to explain what is going on here.

Credit Karma Team
Top Contributor
2949 Contributions
4612 People Helped
Helpful to 21 out of 33 people

Credit Karma doesn't calculate your credit scores  - we purchase them directly from the credit bureau on behalf of our members. Since we have over 50Million members, there are countless reasons why scores can change. While some users saw their scores change when we began providing a new score model in 2014, not all did - and that does not account for recent score drops. Everyone should review their own credit report to look for changes that may impact their score. 

Reply by
shroom420

6 Contributions
12 People Helped
Helpful to 8 out of 21 people

the CK team is pretty useless its like theyre reading a script and have no clue what they're talking about , clearly the credit cards are still using a differnt more logical system and CK is trying to justify their crappy system with fancy terms , they screwed up they need to fix it and revert back to the system creditors use not a system you think is correct  just because you get paid off by those advertiments 

Reply by
iluvskittles83

2 Contributions
18 People Helped
Helpful to 4 out of 4 people

CK is not 100% accurate about your score. It only gives a roundabout. You have to pull your credit report or go to FICO.com to get your real credit score. 

1 Contribution
7 People Helped

Helpful to 7 out of 7 people

Someone much earlier in this thread got it right when they said that having no charges and 0 balance for length of time on a credit card is not a good thing for your credit score. The best way to handle this is to A. not have credit cards you don't need and B. keep using the ones you do.    ie - I have a one credit card and one AmEX (charge card)   on the credit card I have automatic monthly charge from my ISP.  This keeps it active every month and it is something I have already budgeted for so easy to pay off each month.  THe AMEX - I have my alarm service monthly payment automatically charged to it.  Also it is a budgeted item for me and easy to pay off each month.  This way I AM utilizing my credit cards each month.  As each item is already a part of my budget, it is easy to pay for.     If you all have some monthly expenditure such as ISP or even a magazine or newspaper or something like that -- use it to keep your CC active.  

Reply by
CarolynCoolhaha

4 Contributions
2 People Helped

I have heard, and please correct me if I'm wrong, that is is bad for your credit to close credit cards, as well.

3 Contributions
54 People Helped

Helpful to 21 out of 23 people

My equifax score dropped 105 points without rhyme or reason. All lenders use fico anyways. Just utilize credit karma to see what's on your credit report and ignore the score. No one and I mean no one uses vantage score. It's a joke. I decided to pay the 30

bucks a month for the full monitoring service from myfico. It has the three scores that truly matter. 

1 Contribution
27 People Helped

Helpful to 27 out of 33 people

The credit bureaus are simply ridiculous and not a true picture of your credit worthiness. I pay all my bills on time, 100% of the time, only owe money on one credit card out of the 8 I possess and only apply for loans when absolutely necassary, but my Transunion score goes up every month and my Equifax score drops for simply applying for 1 car loan at one place. It is ridiculous to say the least, since you can not borrow any money, from any one bank, without them checking your credit history. It is all a scam and not a true credit picture of how you pay your bills and how responsible you really are as a borrowing customer. Furthermore it is ridiculous for one score to be 712 and go up monthly and the other score be 694 and drop every month for no reason, since you did not do anything different from month to the next month, and when you are only one person, borrowing money from only one bank.Credit bureaus are the governments way of placing a financial hold on the American peoples credit and stiffling the progression of the Amrican economy.

Reply by
Iam11ALPHA

1 Contribution
8 People Helped
Helpful to 8 out of 10 people

i know exactly what you mean. mine seems to drop for no reason. I barely go over 20% of my credit limit and i pay down my loans every month. I hate the credit card cartels with a passion.

1 Contribution
24 People Helped

Helpful to 24 out of 33 people

Question, on here it states my credit somehow dropped 73 points within a month. I recieved no alerts or anything ( I have fraud alert just incase) The only negative in my credit history is that its "young". The only thing that changed was I paid of a car loan in december.  So I double checked on transunion and it states my credit is 720, which is what it should be. Why such a drastic difference?

Reply by
jimgreene68

1 Contribution
41 People Helped
Helpful to 41 out of 45 people

I actually did nothing different, no charges on my cards, kept paying like normal, no new inquires, etc and mine dropped like a rock.  Let them keep it, tired of dealing with it.  Have everything I need now, paying off the credit cards next month, then let them take my credit score and jamb it.  

Reply by
ms2spoiled

5 Contributions
39 People Helped
Helpful to 20 out of 22 people

I was just added to an open credit line that my husband has and my score dropped 81 points!!!  I'm so confused with this entire thing.  I  have been using CK for almost 3 years consistently and one of the things they talked about was keeping your utilization below 30%. With the addition of this card that I'm now and "authorized buyer" on, my utilization went up to only 14%, where's the justice in that??  One other change is that after 5 years, my car note was paid off last month. So I guess, silly me for thinking I was being careful with my credit for paying off the loan when it was due. Any words of wisdom anyone is able to offer is greatly appreciated!! πŸ˜’πŸ˜’

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