Why credit score drops with the Amex platinum??

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Oralbbb
 
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Why credit score drops with the Amex platinum??

Postby Oralbbb » Sat Jul 11, 2015 12:24 am

If anyone can help for this scenario? I'm really new to this .
My girl friend just got her Amex platinum about 2 months ago, but after she checked the credit score today , she found it drops like 50 points. And the system didn't tell her why.(BTW will the system tell her? Or just be us shes careless and didn't find it)

She has some other cards, due to personal reason, cannot get more detailed info right at this point.

Can anyone list all the possible reasons ? just wanna know ALL the possibilities. (cuz before she told me , I thought it was due to the unpaid balance of this platinum card, however, she pif monthly).

Thx a lot !!!! :)


Vermonster
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Re: Why credit score drops with the Amex platinum??

Postby Vermonster » Sun Jul 12, 2015 5:57 pm

Oralbbb wrote:If anyone can help for this scenario? I'm really new to this .
My girl friend just got her Amex platinum about 2 months ago, but after she checked the credit score today , she found it drops like 50 points. And the system didn't tell her why.(BTW will the system tell her? Or just be us shes careless and didn't find it)


Well it all depends on when the last time she checked it was and what has happened since then. Without this info we can only list a number of reasons that any score can go down.

If you use credit Karma, MyFICO, or any credit tracking site they will normally list a reason your score is poor. But to know exactly what caused the drop will require regular monitoring and knowledge of your credit.
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Oralbbb
 
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Re: Why credit score drops with the Amex platinum??

Postby Oralbbb » Sun Jul 12, 2015 7:46 pm

Vermonster wrote:
Oralbbb wrote:If anyone can help for this scenario? I'm really new to this .
My girl friend just got her Amex platinum about 2 months ago, but after she checked the credit score today , she found it drops like 50 points. And the system didn't tell her why.(BTW will the system tell her? Or just be us shes careless and didn't find it)


Well it all depends on when the last time she checked it was and what has happened since then. Without this info we can only list a number of reasons that any score can go down.

If you use credit Karma, MyFICO, or any credit tracking site they will normally list a reason your score is poor. But to know exactly what caused the drop will require regular monitoring and knowledge of your credit.



thanks for your advice !! So , you mean i have to ask her what has happened during a period of time before she checked the score, right?
Cuz all i know is that she uses this card to buy things and pay the full balance on time every month. what kind of questions should i ask? if you were me.

thank you!

takeshi
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Re: Why credit score drops with the Amex platinum??

Postby takeshi » Sun Jul 12, 2015 9:21 pm

To determine the cause of a scoring change you have to carefully review reports from before and after the change. There are a number of factors that impact score and we don't know what happened to her credit.

Oralbbb wrote:Can anyone list all the possible reasons ? just wanna know ALL the possibilities. (cuz before she told me , I thought it was due to the unpaid balance of this platinum card, however, she pif monthly).

Current FICO models do not include charge card balances in revolving utilization.

Vermonster
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Re: Why credit score drops with the Amex platinum??

Postby Vermonster » Sun Jul 12, 2015 10:00 pm

First, how did she find out that her score dropped? Where is she getting this info from?


So some red flags would be;

If she signed up for anything that required her to give her Social Security number. That is a very good sign that someone is going to do a credit check, though not absolute.

If she missed a payment by even a day. Could be on any number of accounts including car loan, student loans, or other credit cards.

New accounts can drop a score a lot sometimes, it sounds like this would be a case of fraud. This is the single most important reason to keep a regular eye on your credit.
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PhillyPhoto
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Re: Why credit score drops with the Amex platinum??

Postby PhillyPhoto » Mon Jul 13, 2015 1:29 pm

The most probable explanation would be opening the new card caused it to drop (1 new account brining down the average age of her accounts and 1 hard inquiry more than likely). Although rarely does it drop by 50 points. Like others have said, we'd need more information about her situation (which sounds like you might not be willing/able to share).
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yfan
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Re: Why credit score drops with the Amex platinum??

Postby yfan » Mon Jul 13, 2015 4:29 pm

What other credit cards does your gf have? What is the combined limit on all of those?

I ask because it's possible that although she pays off the Platinum, if she charges a lot and it reports - the balance reports when the statement cuts, the CB doesn't know that you are paying it in full - it could run up her utilization. There's also the fact that she's got a new account reporting and a corresponding hard pull.

MrMosby
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Re: Why credit score drops with the Amex platinum??

Postby MrMosby » Tue Aug 04, 2015 8:05 pm

If she enabled the pay over time feature the card becomes a "credit" vs a "charge" card, and reports your highest balance as the limit. This hurts by having >30% utilization on a single card.
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