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Question By
edilious

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My score dropped over 100 pts in less than a year
A year ago my FICO score was 750-770 - Now it's 646 ish. What's changed? Traded a 14k auto loan for a 31k auto loan; traded the 31k auto loan for a 24k auto loan; sold the 24k auto loan = no auto loan now. Closed a 10k credit card (paid off); opened 6k and 4k cards (rewards etc.). Carrying approx. 70% balances on the two cards right now but paying down over 1k a month last couple months and will continue to do so. I've never had anything go to collections; have a 4yr old mortgage w/flawless payment history.. I'm mystified as to how my score could drop so dramatically - because I bounced through a couple auto loans (all paid off / never late) and opened two new credit cards over the last 13mo.'s? Is it really just that they all count as new inquiries/short life span accounts? Even though everything's in good standing and my debt to income isn't bad?

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70% is high utilization on credit cards. Utilization should be a maximum of 30%, preferably 10% to 20%.  

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Has more to do with CLOSED accounts

When auto loans and credit cards are paid off and closed, you lose a lot on the "payment history" component (35% of FICO score).  It is not the hard inquiries.  Those closed accounts, even if perfect payment history, no longer contribute to "payment history".  So depending on the length of time you had each car loan and credit card will wipe out a lot of good payment history and also lose AGE of payment history.  The new car loans and credit cards are much newer so the length of payment history wil take a hit.

Top Contributor
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You significantly reduced the "average age of accounts" by opening all of the new accounts in a short time, you acquired several "Hard Inquiries", you've closed accounts and you are utilizing your current cards heavily.

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