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katscredit91

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HUGE Drop in TransUnion credit score--due to school loan repayment??
Between June and July, my credit score dropped 78 points! I was on my way to good credit and then, out of nowhere, I logon to find that my score has tanked. I opened up a credit card in May which I've been using heavily, but nothing out of the ordinary than I've done in the past and my payments have NEVER been late. I've also recently paid off one entire credit card and have been making huge leaps to equalize my credit balances on my three open accounts. I am at about 45% utilization, roughly.

The only thing that I can think that's changed is that my school loans (all subsidized) just went into repayment and I signed up for the Income-Based Repayment (IBR) plan. Would either of these two factors have affected my score so drastically? Is there anything I can do to get my credit score back up? Should I get my credit checked out by a professional?

Thank you!

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It wasn't your student loans, it was the new credit card and your high utilization.  Also, paying off the other credit card actually hurts (I hope you didn't close that account, or you REALLY hurt your score).  You need to get your utilization below 30% to improve your score. For optimum score improvement, it is best to keep 1-3% balance on at least one credit card.  To learn how your score is calculated, visit www.myfico.com.  Best of luck!

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