Fico score drop - how is this possible?

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Red_Rena
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Fico score drop - how is this possible?

Postby Red_Rena » Tue Aug 05, 2014 1:34 pm

Hello everyone,
I'm new to the forum and this is my first post. I have a quick question for you all. I was approved for an American Express card in mid June of this year. Prior to my app, my EX and TU scores were 808. I had no inquiries on TU and 2 on EX. I have clean reports-no lates, no derogs. Fast forward to today when I logged into my Barclaycard account. My score dropped to 795. How is it possible for a 13 point drop in my score? My oldest open account is 12 years old. My oldest closed is 13. My newest is Amex and a Citi I opened last June. Only 3 total inquiries with EX. Thoughts?
EQ 861
EX 08 869
TU 08 822

American Express Blue Cash Everyday $16,000 (6/2014)
Bank of America Better Balance Rewards $3800 (7/2003)
Bank of America Cash Rewards Visa Signature $6000 (3/2012)
Barclaycard Rewards $8200 (2005)
Capital One Quicksilver $4750 (12/2010)
Capital One Quicksilver $4000 (3/2011)
Chase Freedom $2000 (9/2003)
Citi Dividend $5700 (6/2013)
First National Bank of Omaha Visa Platinum $9000 (2011)
Bill Me Later (PayPal Credit) $1960 (2011)


mdl28
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Postby mdl28 » Tue Aug 05, 2014 2:11 pm

Could be many reasons. Do you carry balances on any of your card accounts. If so what is the ratio to CL? Can't say much more with the information you have provided.

Look into your credit report and see if there has been any hard inquiry's you are unaware of. Regardless, looking over your report regularly is a wise choice.

Give some more info and I'm sure more people will comment in.
MDL

Amex Gold Prem'r
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Citi Diamond Pref'd
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yfan
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Postby yfan » Tue Aug 05, 2014 3:00 pm

Oh, so your score went from almost 800 to almost 800? This is an emergency!

Seriously, the small drop in your score was likely due to the fact that new inquiries were added to your report and your aaoa dropped slightly. Nothing to worry about.

MemberSince99
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Postby MemberSince99 » Tue Aug 05, 2014 3:29 pm

Inquiries hit high scores hard but the bite goes away fairly quickly. AAoA probably took a hit if you don't have backdating on the Amex. That would be enough to do it.


The good news is it will go back up in time if you take care of business so I wouldn't sweat it. Yeah over 800 is a great bragging point, but can anyone give me a single example, anything at all will do, where you get something in the real world for having over 800 vs 795? I can't find one. So why sweat it?

Red_Rena
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Postby Red_Rena » Tue Aug 05, 2014 5:41 pm

Hi again,
Forgot to give additional information. Utilization is 4%. I believe my aaoa is 5 years. Not really sweating it, but it's a little disheartening because it's 13 points down from a couple months ago and it took me a while to get over 800. I never had an Amex before, so no backdating for me. And there are no inquiries on my TU credit report, which is why I'm concerned.
EQ 861

EX 08 869

TU 08 822



American Express Blue Cash Everyday $16,000 (6/2014)

Bank of America Better Balance Rewards $3800 (7/2003)

Bank of America Cash Rewards Visa Signature $6000 (3/2012)

Barclaycard Rewards $8200 (2005)

Capital One Quicksilver $4750 (12/2010)

Capital One Quicksilver $4000 (3/2011)

Chase Freedom $2000 (9/2003)

Citi Dividend $5700 (6/2013)

First National Bank of Omaha Visa Platinum $9000 (2011)

Bill Me Later (PayPal Credit) $1960 (2011)

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PlyrStar93
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Postby PlyrStar93 » Tue Aug 05, 2014 10:27 pm

A drop by that much is most likely new tradelines reducing AAoA. Age of accounts takes part in calculating credit score so 13 points is not surprising, even if NO new inquiries added. "New credit" also takes part in the calculation, which means the new account itself has impact on score because it is new, also not related to inquiries.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
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Red_Rena
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Postby Red_Rena » Wed Aug 06, 2014 4:13 am

Good grief, I just figured out my AAOA is a little over a year. I was calculating wrong. Kinda sucks if you have the cards you started out with that you have outgrown and want to upgrade for better. My ultimate goal was to close one of my BofA cards (AF) and replace it with the Discover It because I keep getting offers for it and hear good things about it. Guess I'd better garden for a while. Thanks for your input, everyone. I love to keep learning about credit and ways to improve it.
EQ 861

EX 08 869

TU 08 822



American Express Blue Cash Everyday $16,000 (6/2014)

Bank of America Better Balance Rewards $3800 (7/2003)

Bank of America Cash Rewards Visa Signature $6000 (3/2012)

Barclaycard Rewards $8200 (2005)

Capital One Quicksilver $4750 (12/2010)

Capital One Quicksilver $4000 (3/2011)

Chase Freedom $2000 (9/2003)

Citi Dividend $5700 (6/2013)

First National Bank of Omaha Visa Platinum $9000 (2011)

Bill Me Later (PayPal Credit) $1960 (2011)

MemberSince99
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Postby MemberSince99 » Wed Aug 06, 2014 6:33 am

If they won't PC it or waive the fee, then I'd say you are still better off dumping it for a card without a fee, even if your AAoA takes another hit. Again, yeah it hurts I'm sure to go below 800 (I wouldn't know personally as my score has never been over 800) but it will come back.


Then you can hit the garden, preferably for life. :)

Red_Rena
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Postby Red_Rena » Wed Aug 06, 2014 1:55 pm

Hey MemberSince99,
I don't know if I should do it this year or wait until next year before the AF is scheduled to hit. I'm thinking I should do it soon, because if I wait until next year, AAOA would take a harder hit.
EQ 861

EX 08 869

TU 08 822



American Express Blue Cash Everyday $16,000 (6/2014)

Bank of America Better Balance Rewards $3800 (7/2003)

Bank of America Cash Rewards Visa Signature $6000 (3/2012)

Barclaycard Rewards $8200 (2005)

Capital One Quicksilver $4750 (12/2010)

Capital One Quicksilver $4000 (3/2011)

Chase Freedom $2000 (9/2003)

Citi Dividend $5700 (6/2013)

First National Bank of Omaha Visa Platinum $9000 (2011)

Bill Me Later (PayPal Credit) $1960 (2011)

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Wed Aug 06, 2014 6:30 pm

AAoA won't be affected by closure, just opening a new account. With your cards I'm really not sure why you would want or need to keep one with an annual fee that doesn't pay for itself.



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