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Question By
Edenrage

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0 People Helped
Why a 50 point drop in credit scores after decreasing balances and increasing limits on cards
Have been monitoring equifax and transunion scores for a year plus, gradually had score increase from low 500s to almost 650. Have about 12 accounts between small loan, student loans and credit cards. Recently increased credit limits on 3 of the cards by a combined 1800 and got a new gas card with a 700 dollar limit... While in the same month, paid down debt across several cards by almost a thousand dollars. My utilization rate is about 52 percent, yet while last month my scores went up about 30 points, this month they dipped more than 50. The only thing that has changed is that I got higher limits which decreased my utilization ratio, and paid down debt which also decreased it. I was careful not to pay any card balance down to zero, but I did decrease one with a 1000 dollar limit which had a balance of 809 down to like 92 bucks. Aside from maybe 3 hard inquiries for the credit increases and new card ( I assume they all used hard inquiries) all that has happened in the last month was supposed to increase my score ( lower debt and increase limits). All of credit karma tools say that hard inquiries have a "low impact on scores" so the 50 point drop is inexplicable.

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8 Contributions
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Lots of unexplained dropping scores...

And no explantion from CK.

I'm wondering if they dropped the useless vantage score and switched to FICO scores.  A heads up would have been nice.

Instead a lot of people got a nasty surprise.  After working hard to improve their scores the bureaus shafted them anyways.  

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Reply by
tbdc

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Again how did the bureaus shaft anyone?  FICO is what most companies uses anyways....

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Crossed checked scores outside of ck

I crossed checked my scores at a paid site that gave me all three, which were 647, 627, and 630. ONLY Credit Karma has it dropping that dramatically, AND their records haven't even updated that my balances are lower on 4 of my cards, and the credit limit is higher on 2 of them. that's whay it is so confusing.

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