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wildkat90

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Sudden Credit Score Drop!
I'm keeping an eye on my credit score since I'd like to buy a house in the next 2 years. Recently it's been steadily climbing, but then all of a sudden: a 20 point drop! There are only two things I can think of. 1) My bank checked my score recently because of a credit line increase request (but this shouldn't have impacted it by 20 points, right?) and 2) I have $0 balance on both of my credit cards right now. I paid of my main card a few days before it was due this month. So perhaps it looks like I'm not utilizing my credit cards? I have had no recent late payments, no new cards, not even a new checking account! I did open a new savings but that wouldn't affect it. I have a feeling it's the combination of the two things I mentioned but I'm nervous it will go down further and I really don't want that! Please help!

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If your bank did a hard pull on your request for a credit line increase and you have other hard pulls within the last two years, you may have crossed a threshold that put you into a higher risk category (arbitrary example: having four hard pulls but going to five may be a risk indicator in some credit models). I don’t think that one month of reducing your balance to zero would have the effect of hitting your credit that hard.

Another thing to consider is whether  the score you’re writing about is Credit Karma’s score (TU/Exp. Vantage 3.0) or a score from another rating agency. I’ve found that CK’s score is usually a pretty good indicator of the direction your credit is moving but can be volatile in relation to other systems. For example, I recently opened a new card with a 15k limit and CK whacked my score for 31 points. My Fico8 score however only reflected a four point drop. I wouldn’t sweat it too much if your just using CK’s score as the primary metric.

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