Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
sentner

0 Contributions
0 People Helped
Why the heck did my score drop 48 points in one month with only positive changes to accounts?
My score had been bordering on good/excellent. I just paid off one old (closed) account, and finished paying off a car loan. Also paid off about $7k in other credit card debt. And my transrisk score dropped by 48 points! But my Vantage score shot UP. What would cause this?
All Responses

Results 1-10 of 34Results per page: 5 | 10 | 25Page 1 of 4   Previous | Next
1 Contribution
16 People Helped

Helpful to 16 out of 17 people

 Hi Sentner,

Your score dropped because you paid off your car loan.  The average length of your credit history includes open loans, and when this was closed, it no longer was included in it, which meant your average account age went down.  You'll see as time goes on that your score will go back up.  Great job on getting rid of the debt!

Top Contributor

Reply by
hardeight

405 Contributions
2540 People Helped
Helpful to 5 out of 5 people

This is definitely part of the reason. Also Vantage score has different weights than the traditional model. Vantage values recent accounts and debt load more. I think the combination of those things explain the differences you are seeing. 

5 Contributions
21 People Helped
Most Helpful Response

Helpful to 11 out of 11 people

i think there is some problem with the site. i just updated my score and it dropped dramatically, stating that my total accounts have an increase of  $642. there is no such thing!!!! only payments have been made to my credit cards and on time as well.  something is definitely wrong with this site. normally i have no issues with creditkarma, but i think someone needs to check this out.  even the balances on my accounts are the same as they were the last time i checked in about two weeks ago.

5 Contributions
21 People Helped

Helpful to 8 out of 9 people

just looked into some things and apparently, i smell a rat.  transunion will no longer sell you a single credit report, only through  a subscription for credit montioring.  am i correct when i say that this site is run by transunion??  so i assume they are gonna throw some crazy dip in a score to pique our curiousity and force us to buy into the scam just to get a copy of our OWN credit report!!!!  what a total rip off.  so shady. wow creditkarma, if that is your scam i am so embarrassed after telling everyone what a great site this is.  shame on you

Reply by
eastcane

1 Contribution
10 People Helped
Helpful to 10 out of 11 people

Trish, I've had the exact same thing happen the last two weeks. I had a 806 that has stayed 806 for over a year now. Suddenly, for no reason, it plummets to 749, a 57 point drop. I've paid in November and December exactly like I've always done, paid the entire balance on my VISA, and paid a big chunk of principle off my home equity account. No borrowing, no lates, something is terribly wrong here...

Reply by
dennywagner

4 Contributions
13 People Helped
Helpful to 5 out of 7 people

same here. Now I see people plugging score navigator. tried it. my score there (transunion) was different from here and from the report I just pulled. Both creditkarma and score navigator use or are run by transunion. Coincidence that nothing matches within 2 days of each other??

1 Contribution
5 People Helped

Helpful to 5 out of 5 people

I am very, very confused. I have four credit cards I've been trying to work on... got a big project at work and made enough to pay two of them down to a zero balance. I never CLOSED them; I want them open showing available credit but not being utilized.

My score on here dropped by 23 points!!!! I am so confused. My utilization decreased by 15%, which is nice. But why would I get such a score penalty for doing something good?

To reiterate: None of my cards has been closed out. Just a zero balance on two of them now. No other changes with the car loan or anything else I could possibly think of. I've been working really hard bc I want to buy a home...wish I had a better idea of my true score. :(

3 Contributions
10 People Helped

Helpful to 7 out of 9 people

You can get a free credit report once a year without having to purchase anything. I think the site is annualcreditreport.com and it gives you all three bureaus.

Results 1-10 of 34Results per page: 5 | 10 | 25Page 1 of 4   Previous | Next

Reply to this Question

Write your response:
Enter Your Comments
 

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.