FightOn72

Why did my credit score drop 55 points in one day?

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I checked my credit score today, and to my surprise, it dropped 55 points from yesterday (Transunion and Equifax).  The only thing that changed from the last time my score was generated, was that I requested a credit line increase, which created a hard inquiry.  My credit line increase was granted, so my credit utilization went down.  However, my credit score also dramatically dropped.   I was shocked!  What could have possibly caused this? 

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7 hours ago, FightOn72 said:

I checked my credit score today, and to my surprise, it dropped 55 points from yesterday (Transunion and Equifax).  The only thing that changed from the last time my score was generated, was that I requested a credit line increase, which created a hard inquiry.  My credit line increase was granted, so my credit utilization went down.  However, my credit score also dramatically dropped.   I was shocked!  What could have possibly caused this?

A single hard inquiry won't drop your score 55 points.  You had some other activity going on between your last report and the current one.  Most likely cause is you ran up your balances.  Keep in mind that unless you pulled your actual FICO score yesterday and again today, you a.) aren't seeing actual "credit scores", and b.) don't really know when your score 'dropped'.  If your last FICO pull was a month ago, everything that goes on during the month goes in to what gets scores on the next FICO report.  If you were at 10% utilization on your last FICO pull and the one from today is 50%, that will certainly explain a 55 point drop.

I can tell you that the credit limit increase hasn't hit your report in just one day, so the change in utilization isn't helping yet.

 

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14 hours ago, Harry Seaward said:

A single hard inquiry won't drop your score 55 points.  You had some other activity going on between your last report and the current one.  Most likely cause is you ran up your balances.  Keep in mind that unless you pulled your actual FICO score yesterday and again today, you a.) aren't seeing actual "credit scores", and b.) don't really know when your score 'dropped'.  If your last FICO pull was a month ago, everything that goes on during the month goes in to what gets scores on the next FICO report.  If you were at 10% utilization on your last FICO pull and the one from today is 50%, that will certainly explain a 55 point drop.

I can tell you that the credit limit increase hasn't hit your report in just one day, so the change in utilization isn't helping yet.

 

Thank you for your response.  Just some additional info:  I use creditkarma, and according to that website, my credit utilization was previously 28%.  After I got my credit increase, it went down to 22%.  Nothing else changed, other than the hard inquiry.  So the only thing that changed in between was my credit utilization dropped and there was a hard inquiry.  I did not make any additional charges, so I still can't understand why my score dropped 55 points.

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UPDATE:

So I've been worrying over this, so I went ahead and paid $20 and made an account at the Transunion website.  According to the website, it says I have credit balances over $37,000.  However my actual balances is around $14,000.  I double checked this with all my accounts.  Is it possible that this type of mistake can be made?  Or is there something else going on? I plan on calling Transunion tomorrow morning. 

 

EDIT:  It looks like the $37k includes my installment accounts (education loan and car loan), so that figure is accurate.  However, I still can't comprehend why my score dropped when I didn't do anything that would negatively affect my score.

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5 hours ago, FightOn72 said:

However, I still can't comprehend why my score dropped when I didn't do anything that would negatively affect my score.

By using CreditKarma as your score guide, you're tilting at windmills.  In December my TU FICO score dropped 20 points due to increased utilization and a hard inquiry for a CLI.  I have since recovered all but 5 of those points.  At the same time, CreditKarma showed a 30 point drop on TU and then another inexplicable 10 points a couple weeks later and it has never recovered.    If you're going to be applying for credit, get copies of all 3 FICO scores from myfico.com.  They aren't cheap, but you will see exactly what your potential lender will see in every variant of your FICO score (there are 6 or 8 different models depending on what you're applying for).  If you're a Discover customer, they give you your TU FICO 8 score free, updated monthly.

Bottom line, use creditkarma for the alerts & account data and ignore the score.

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