Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Scores
Profile Image

Question By

4 Contributions
4 People Helped
Concerned About Continual Credit Score Drop
Hi All,

I'm hoping someone could explain what I'm doing wrong, or the reason behind my FICO score dropping over the last few months. I've had a Wells Fargo card for about three years now, and decided it was time to open a 2nd account. I've always paid my bills on time, and in full. When I was approved for an AMEX card, they pulled my score from Experian, and it was a 771. I was very surprised it was that high to say the least. One of the perks of that card is that I get a free FICO score fro Experian, and it says that checking it does not affect the score. About a month after I opened my account, I saw the score drop to a 763, and thought it was due to the inquiry. The next month I checked, it went down to a 743. The explanation was "In your case this number is too low because you have very few accounts or because you've missed payments recently on some of your accounts." I called Wells Fargo and Amex, with both companies saying I've never paid late. I check today, and it has dropped to a 729, and the explanation is "Length of time accounts have been established, and Lack of recent installment loan information". I know that the average age of my accounts lessened with a new account opening, but a 771 down to a 729 seems very excessive for just opening a new card. I do not need a loan, or a mortgage. Again, I want to reiterate I've always paid on time and in full. I have about 18-27% utilization, and have never gone over 30%. What am I doing wrong, and will this continue to go down? Is this normal?

For what its worth, when I inquired with experian about the credit report, they said I had no missed payments, and that the Amex card had not yet reported, but the inquiry was there. Credit Karma seems to agree with the payment history being just fine.

If someone could explain to me whats going on, i'd greatly appreciate it.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
11727 Contributions
4500 People Helped

Utilization is high, actually.

The ideal utilization to strive for is 10% or lower.  As long as you don't pay your accounts ahead of time (as in before the monthly statement arrives) your score should raise some.  Please consider re-reading the articles here and utilizing the financial tools so you can see what may work to improve your credit score even more. 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.