What can cause my credit score to drop 30 points in 1 month

[RIGorous1]

Hey team,

I get a month credit summary with my providian credit card and transunion is reporting a 30 point drop from last month to this month. I've always paid my bills on time for the last 4 years and my score is very high, so I can't understand why it fell so hard. The summary doesn't tell me why the score dropped only the score, so I'm think what could possibly do that to me. I'm a college student with a few loans, but all those loans are deferred for atleast a year from now, I have no morgage, I own my own car, I'm pretty much squeaky clean.

The only thing I can think of is that I just got hired for a new job, but I won't start work for another 6 months, and I seriously doubt a single inquiry like that will drop me 30 points, right?

What should I do? How can I find out the exact cause without spending 30 bucks on a full credit report.

Thanks for your help.

 

[jlbenedict]

You have access to each of the three credit reports, free, once per year (per federal law).


An inquiry could have caused the 30 point drop; but also note, that next month that 30 points will come back to you.

Also, by applying for the job, that potential employer should have only pulled a "soft" inquiry; not a "hard" inquiry. At least I would think that to be true.

 

[yowolabi]

Did you close any credit cards recently?

 

[RIGorous1]

Yeah part of me is thinking that it wasn't my employer because I signed no more than 2 weeks ago and my employment won't start for a 6 months, so I doubt they'd work that fast (its a big bureaucratic company). What else could've done this kind of hit, would missing a payment on a credit card do that?

Ok lets say I do find out what happened, and it was wrongly dropped, what kind of recourse do I have to correct it?

 

[jlbenedict]

Originally posted by: yowolabi
Did you close any credit cards recently?

Yep.. another possibility. Especially if it had a nice, long history and never late.


A common mistake is closing an account once its paid in full. Sometimes it pays off to keep the account open and reap benefits of the history of the account.

Throw the credit card away in a sock drawer and forget about it.

 

[Cooler]

Originally posted by: RIGorous1
Yeah part of me is thinking that it wasn't my employer because I signed no more than 2 weeks ago and my employment won't start for a 6 months, so I doubt they'd work that fast (its a big bureaucratic company). What else could've done this kind of hit, would missing a payment on a credit card do that?

Ok lets say I do find out what happened, and it was wrongly dropped, what kind of recourse do I have to correct it?

it could. Pay on time always.

 

[jlbenedict]

Originally posted by: RIGorous1
Yeah part of me is thinking that it wasn't my employer because I signed no more than 2 weeks ago and my employment won't start for a 6 months, so I doubt they'd work that fast (its a big bureaucratic company). What else could've done this kind of hit, would missing a payment on a credit card do that?

Ok lets say I do find out what happened, and it was wrongly dropped, what kind of recourse do I have to correct it?

Missing a payment can definately cause the point drop.

If you missed a payment, and you don't make that payment within 30 days, the creditor will report a 30-day late period for that tradeline.

By law, if they are reporting, it has to be correct and accurate.

 

[ViviTheMage]

haha, you called us a team!

 

[DaWhim]

it could be a ding on your credit report from collection agency.

are you this dumb? pull up all 3 credit reports right now!

 

[ElFenix]

pull it and see what's been added recently.

 

[RIGorous1]

Originally posted by: jlbenedict

Originally posted by: yowolabi
Did you close any credit cards recently?

Yep.. another possibility. Especially if it had a nice, long history and never late.


A common mistake is closing an account once its paid in full. Sometimes it pays off to keep the account open and reap benefits of the history of the account.

Throw the credit card away in a sock drawer and forget about it.

Wow I didn't know that! I think my mom cancelled one of our joint accounts that had a high limit and about 3 years of good history. Nevertheless, that is a great tip! Thanks!

 

[jlbenedict]

Originally posted by: RIGorous1

Originally posted by: jlbenedict

Originally posted by: yowolabi
Did you close any credit cards recently?

Yep.. another possibility. Especially if it had a nice, long history and never late.


A common mistake is closing an account once its paid in full. Sometimes it pays off to keep the account open and reap benefits of the history of the account.

Throw the credit card away in a sock drawer and forget about it.

Wow I didn't know that! I think my mom cancelled one of our joint accounts that had a high limit and about 3 years of good history. Nevertheless, that is a great tip! Thanks!

A joint account with your mother? Do you possibly mean that you were an "AU" or authorized user? This is another tactic of someone trying to build credit. Have yourself added as an AU on mommy or daddys Amex or any other credit card (especially if mommy or daddy are loaded ). The AU gets the benefits of having the positive tradeline as well, without ever having to charge a thing, or worrying about a payment (unless mommy or daddy fvck up).