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Question By
mjgoldstein88

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.

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Top Contributor
7347 Contributions
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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. 

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