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Question By
sentner

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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?

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ExCrednow

Helpful to 6 out of 7 people

I recently paid off all student loans (10,000) eqifax score dropped 51 points  and tans Union only 4 points  however my Fico score  hasn't budged and remains  in excellent range. Also my Amex card shows me as a cardholder since 95' although credit karma shows my history at 5 yrs 4 months? I used to obsess about this but I try to keep all credit limits below 25%  and have automatic withdrawals set up on all accounts and have never had a late payment. I just don't worry about it anymore all of this info is computer generated don't take it personally. I'd rather be paying off debts rather than have a higher credit score!!

1 Contribution
22 People Helped

Helpful to 22 out of 25 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!

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Reply by
hardeight

405 Contributions
2578 People Helped
Helpful to 8 out of 11 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. 

Reply by
bestus

3 Contributions
3 People Helped
Helpful to 3 out of 6 people

Thanks ksumma's that is helpful crazy but helpful one card is paid of another 0 interest transfer balance from tips from this site ugh, and 2 companies viewed my score why do they drop your score for that this system stinks like mosts things I am not interested in looking on this or any site for a while , Only to prevent fraud ....

Reply by
rabbitbriar

1 Contribution
2 People Helped
Helpful to 2 out of 4 people

I understand what happened in this case it happend to me last year, the score came back up , but I just checked it 1st time this year it droped even more than it did when I paid off my car and other debts, I did not change anything, just keep paying my bills, are they playing with us or what.

5 Contributions
25 People Helped
Most Helpful Response

Helpful to 13 out of 13 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.

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Reply by
jarena82

62 Contributions
190 People Helped
Helpful to 5 out of 9 people

Keep in mind that the site is pulling information from a credit burea, which is getting information only as quickly as the creditors send it to them.  The problem is not with this site, it's with the credit burea system.

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14 Contributions
46 People Helped

Helpful to 7 out of 8 people

I have a question that's driving me nuts!!!   I also have another PAID credit score service that allows me to check my REAL credit scores for all three services once a month.  The first 6 months on CReditKarma was nearly in line with my true scores, but last month my score dropped 30 points, and even my meaningless insurance score dropped 40 points.

My ACTUAL credit scores are all 30-50 points higher than CreditKarma is stating.  Beware, something is wonky with this place. 

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70 Contributions
1753 People Helped

Helpful to 9 out of 10 people

Your credit score usually drops if you pay off old account, especially if they went to a collection agency! I found out that it is better not top pay of debt collectors as it will affect my credit score for 2 years after I have paid them off! By doing the right thing, I am doing the wrong thing and getting penilized by the credit bureas! That is just crazy! But let us look at this, it is all for the benifits of the banks! The banks are the ones who created the creait bureas for their benefits, it only benefits the banks if your credit score is low, so they can make you pay more! This is such a terrible discrimination to all in the United States of America! I always thought discrimination was against the constitution!

5 Contributions
25 People Helped

Helpful to 10 out of 13 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
15 People Helped
Helpful to 15 out of 18 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
cunninghamlally

1 Contribution
3 People Helped
Helpful to 3 out of 5 people

I had the exact same thing happen, I monitor my credit monthly with a paid service and my credit is 50 point higher and has ben that way for over a year.

I think that Trish is onto something.....I almost fell for it, instead I am going to cancel this scam.

Reply by
dennywagner

4 Contributions
14 People Helped
Helpful to 6 out of 9 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??

3 Contributions
11 People Helped

Helpful to 8 out of 11 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.

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Reply by
happycat2010

18 Contributions
34 People Helped
Helpful to 4 out of 5 people

and yes you have to wait exactly 1 yeear and one day fromthe lst freebie in order to get it.along with transunion is a apin in the ***.. I always have to send in proof of this that and everything else just to get the **** report. even if nothing changed.

2 Contributions
6 People Helped

Helpful to 5 out of 6 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. :(

1 Contribution
5 People Helped

Helpful to 5 out of 7 people

My credit score dropped extremely low,  all credit cards have a zero balance and it isn't showing on this website as zero.  I am sure it will correct itself. Does the credit card companies take a while to report credit balance differences?  Does Credit Karma wait until the end of the month to post these changes?  This website opens yours eyes to your credit background and is addicting to log on to daily.  Thanks for a great website! 

Reply by
par75043

1 Contribution
7 People Helped
Helpful to 7 out of 7 people

I paid my car off and mine went down.  It's dang if you do and dang if you don't .  Doesn't seem fair.

1 Contribution
4 People Helped

Helpful to 4 out of 6 people

well  be careful with freecreditscore.com cause they will charge your credit card every month for that... you gotta read the fine print.. after you become a member you have to cancel it after a certain amount of days or they will charge you!! 

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