credit score just plunged 49 points

[kenmoremmm]

i had been hovering around 825 for a year or two. i closed some CC accounts a few months ago and my available credit limit dropped from $134,450 to $87,415; i don't remember closing that many cards, but whatever.

thought it was an interesting shift in how finicky credit scores can be. i've materially changed zero, but my score says i became much riskier.

[HBFIRE]

as long as your utilization % has remained low, it shouldn't have that much of an impact (closing cards).  There could be something else impacting your score.  Have you pulled your reports?

[kenmoremmm]

haven't pulled reports. credit monitoring thing through my bank (capital one 360) gave me a summary of why it changed. we had some larger balances on CCs this last month because of a new water heater and materials for a cedar fence, so even though they're paid off right away, it still registers a higher utilization than normal (7% instead of 1%)

[HBFIRE]

Ah gotcha.  Yeah thats just temporary and controllable, no biggy.

[Cool Friend]

Mine just dropped 15 points the other day, and the only change I’m seeing is an old bank credit line at the bank that I closed years ago finally aged out of my record. Credit Karma rates my number of accounts “Poor” now because I only have one credit card and one student loan, though they’re both in good standing and my credit card utilization is always under 10% of its limit.  Kind of a bummer.

[soccerluvof4]

Based on what your saying OP i'd be surprised if it doesnt bounce back pretty quick.

[HBFIRE]

Mine just dropped 15 points the other day, and the only change I’m seeing is an old bank credit line at the bank that I closed years ago finally aged out of my record. Credit Karma rates my number of accounts “Poor” now because I only have one credit card and one student loan, though they’re both in good standing and my credit card utilization is always under 10% of its limit.  Kind of a bummer.

Luckily the scores Credit Karma provides (Vantage) are almost completely meaningless.  I've seen pretty huge differences between Vantage and FICO scoring, sometimes as much as 70 pts (as a frequent churner/bonus chaser, I monitor all my scores).  Vantage Scoring is very rarely used in the real world. Credit Karma a useful platform for looking at your credit report, however.  Here is a list of the credit cards that provide free FICO scoring and their associated models if you want to monitor your FICO at no cost.  To make things even more confusing, not only are there 3 reporting agencies, there are also numerous FICO models.  FICO 8 seems to be the most commonly used flavor currently, but version 9 was released some time ago.  The confusing thing is that there is a normal FICO 8, a "Bankcard 8", and then an "Auto Score 8".  So each version even has its own branches.  I've seen my individual FICO 8 "branch" scores vary by as much as 50 points.  Knowing my FICO bankcard 8 score even on all 3 reporting agencies isn't too helpful if I'm looking at getting a mortgage.  Mortgage lenders for whatever reason tend to use an older version -- FICO Score 5.  Yes, I have geeked out a bit on credit scoring.

Amex - Experian FICO 8  (amex started also providing Vantage, so make sure you're looking in right place)
Discover - Transunion FICO 8
Barclays - Transunion FICO (not sure model)
Citibank - Equifax FICO Bankcard 8 
BoA Transunion FICO 8

So with an Amex/Discover/Citibank combo you could montior all 3.

[Cool Friend]

Mine just dropped 15 points the other day, and the only change I’m seeing is an old bank credit line at the bank that I closed years ago finally aged out of my record. Credit Karma rates my number of accounts “Poor” now because I only have one credit card and one student loan, though they’re both in good standing and my credit card utilization is always under 10% of its limit.  Kind of a bummer.

Luckily the scores Credit Karma provides (Vantage) are almost completely meaningless.  I've seen pretty huge differences between Vantage and FICO scoring, sometimes as much as 70 pts (as a frequent churner/bonus chaser, I monitor all my scores).  Vantage Scoring is very rarely used in the real world. Credit Karma a useful platform for looking at your credit report, however.  Here is a list of the credit cards that provide free FICO scoring and their associated models if you want to monitor your FICO at no cost.  To make things even more confusing, not only are there 3 reporting agencies, there are also numerous FICO models.  FICO 8 seems to be the most commonly used flavor currently, but version 9 was released some time ago.  The confusing thing is that there is a normal FICO 8, a "Bankcard 8", and then an "Auto Score 8".  So each version even has its own branches.  Mortgage lenders for whatever reason tend to use an older version -- FICO Score 5.  Yes, I have geeked out a bit on credit scoring.

Amex - Experian FICO 8 
Discover - Transunion FICO 8
Barclays - Transunion FICO (not sure model)
Citibank - Equifax FICO Bankcard 8 
BoA Transunion FICO 8

So with an Amex/Discover/Citibank combo you could montior all 3.

I did not know any of that, thank you very much! I only just got a credit card last year to help me build credit, and since it's Discover so I can go check my FICO 8 score right now.

Thanks again!

[cchrissyy]

were the cards you closed some of the oldest ones you have? maybe the average age of your open lines changed a lot.

[HBFIRE]

were the cards you closed some of the oldest ones you have? maybe the average age of your open lines changed a lot.

Closed cards still report for 10 years after the closed date.

[exterous]

Another thing to keep in mind is that it can depend on when things are reported by financial institutions. A slightly more extreme case but mine dropped by 70 points once to 740. Freaked me out. Digging into it I found out my mortgage company was 10 months late reporting my new mortgage to the various agencies. This 9 month delay meant it hit the same month as a small car loan (which was delayed being reported by 2 months) and the closing of 2 credit cards (which happened that month).

I thought I was fine by spacing them out but instead it looked like I might be losing my financial mind. Everything recovered quickly though

[accolay]

Mine recently "dropped" 20 points. But it dropped from Excellent to Excellent, and it dropped because I don't have any revolving balances on my credit cards. Poor me. #humblebrag?

[Spitfire]

Mine dropped like 30 points a few months ago when my mortgage was sold. I guess the closing of one account and opening of another dinged it temporarily even though I didn't actually do anything. It's back to normal now.

[ixtap]

Mine drops once a year or so then climbs back up. I do believe this is the first time that my lack of installment loan has actually been mentioned as a negative, though. It has been 5 years since I sold my house, so perhaps my wealth is finally coming back to get me?

[Duke03]

Start credit card churning.  I swear since I stated churning a few years ago my credit score has a shield on it.  A hard inquiry will only cost me 1-2 points and will rebound 3-5 points the next month.  I've signed up for over 30 credit cards in the last 24 months and still have a 823 score....., but to answer your question yes your score took a dive because of the lower credit limits extended to you.  Give it a month or two and it will rebound.  I wouldn't sweat it as you still have excellent credit and will qualify for anything under the sun you want to buy.

[kenmoremmm]

score is back up to 824 today.
weird blip, i guess.

[HBFIRE]

score is back up to 824 today.
weird blip, i guess.

You said:

haven't pulled reports. credit monitoring thing through my bank (capital one 360) gave me a summary of why it changed. we had some larger balances on CCs this last month because of a new water heater and materials for a cedar fence, so even though they're paid off right away, it still registers a higher utilization than normal (7% instead of 1%)

That's likely the culprit, short term utilization increase.

[Jesse@Papermonger]

Not really.  Isn't anything over 750 considered excellent?  And unless you are planning to apply for loans soon it probably doesn't matter at all.

I have heard from a few people now that there is nearly zero distinction between having a 751 and an 850, especially if you're requesting credit from an electronic underwriter. Good news for the perfectionist in me, but a drop close to 750 might make me nervous if I needed a line in the near future.

[HBFIRE]

I have heard from a few people now that there is nearly zero distinction between having a 751 and an 850, especially if you're requesting credit from an electronic underwriter.

This is true.  However, couple things to keep in mind.  A buffer is useful, as scores can fluctuate some.  More importantly, not only are there 3 bureaus, but there are also a multitude of flavors of FICO depending on the type of credit needed.  Your mortgage FICO, for example, is going to differ from the score your credit card pulls and also the score used in auto lending.  This variance can sometimes be substantial, 50+ points.  Keeping scores healthy is useful for reasons other than just obtaining financing -- for example auto insurance, leasing an apartment, getting employment, these are all things that can be impacted by your credit.   Even many utilities pull credit and may require deposits.  And of course, the free money that comes with credit cards requires decent credit.

[Dicey]

Are you actively looking to make a major purchase? Does it matter in any significant way? These are real questions, I am  100% not being snarky. Are you looking for help fixing something that is an actual problem or just wondering why your score went down?

[PDXTabs]

Not really.  Isn't anything over 750 considered excellent?  And unless you are planning to apply for loans soon it probably doesn't matter at all.

I have heard from a few people now that there is nearly zero distinction between having a 751 and an 850, especially if you're requesting credit from an electronic underwriter. Good news for the perfectionist in me, but a drop close to 750 might make me nervous if I needed a line in the near future.

AFAIK few lenders will care past 720.

[BicycleB]

This thread is more informative than any results I ever got from search terms like "how are credit scores calculated." @HBFIRE, thanks for the post on the different FICO flavors.

[kenmoremmm]

Are you actively looking to make a major purchase? Does it matter in any significant way? These are real questions, I am  100% not being snarky. Are you looking for help fixing something that is an actual problem or just wondering why your score went down?

i think i was just bored when i posted it and had found the change odd given a steady credit score state for years.