r/CreditScore • u/CombinationAromatic6 • Dec 09 '25
Help, my score keeps going down
Back in September I got an alert that my score went down 70 points. I was shocked because I didn’t think anything had changed. I realized I had forgotten about an annual fee on a card I don’t use and the payment reminders were going to an old address and email. I immediately made the payment and sent a letter to the CC company asking them to remove the late payment from my credit report. They agreed and it was removed. However, it only increased my score 24 points. Additionally, because of the decrease in score, two of my credit cards decreased my credit limit DRASTICALLY! One of them from $12k down to $500. No, it’s not missing a zero. So then my score decreased further because I have less available credit. I’m feeling really hopeless and frustrated because my score has gone from 740 to 671 in 6 weeks. Why didn’t the removal of the late payment raise my score the 70 points it had decreased? What do I do now? I don’t have any big purchases coming up so I’m not in a hurry necessarily, but it still feels really crappy.
Edit: grammar
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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ Dec 09 '25
First, which score model/version and bureau are you looking at? There are dozens of scores. Make sure you’re looking at one that is relevant.
two of my credit cards decreased my credit limit DRASTICALLY
Did this in turn increase your utilization? That could easily be the cause. There is no reason to worry about utilization month to month, but you can implement AZEO when you’re 1-2 months out from an important credit application and that should bring your score back to where it was before.
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u/Head-End-5909 Dec 09 '25
There is no reason to worry about utilization month to month
True for most models, but not so for trending models like FICO 10T and VantageScore 4.0. While not yet common, certain lenders do use these.
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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ Dec 09 '25
Which lenders are using them? I haven’t seen any yet.
Regardless, they’re looking at the trend, so you’d only be penalized if your balances increase month over month. If they stay relatively stable or decrease (like they would if you implement AZEO) there is no penalty.
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u/DoctorOctoroc ⭐️ Knowledgeable ⭐️ Dec 09 '25 edited Dec 09 '25
they’re looking at the trend
Exactly. We had a very thorough discussion about this in another thread awhile back and it was determined that it's actually better for 10T to allow statements to post naturally since there is more room for improvement to the trend line via AZEO, whereas if balances are micromanaged to be consistently low, the only direction utilization could trend is upwards. Otherwise, if both strategies show consistent spend, the result is the same.
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u/Head-End-5909 Dec 09 '25
My Amazon store card, issued by Synchrony bank, uses VantageScore 4.0. BMO, Alliant Credit Union, Jovia Financial, Baxter/BCU, RBFCU, Wings Credit Union also uses it. Fannie Mae and Freddie Mac now allow lenders to use VantageScore 4.0 in the tri‑merge mortgage credit report process, rather than relying exclusively on FICO. It’s often used in conjunction with FICO.
FICO 10T is still being implemented, but FHFA has validated FICO 10T for use by Fannie Mae and Freddie Mac; once implementation is complete. Cardinal Financial, an early adopter, already uses FICO 10T for non‑agency or VA loans, including the first mortgage‑backed security explicitly backed by FICO 10T‑decisioned loans.
I consistently maintain 2-5% utilization simply because my available credit is way higher than I could possibly need. No manipulation/micromanaging involved.
My main point is that utilization does matter for trending models and those models are gaining adoption because they paint a more accurate history of credit use -less manipulation.
To say it doesn’t matter at all is inaccurate. People should be aware of that. That “myth” needs to be updated.
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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ Dec 09 '25
Now that you mention it I do remember synchrony using VS4. Most of those are pretty small banks/CUs. I don’t see Amex or Chase switching any time soon.
FICO10T has been “being implemented” for years now and the vast majority of lenders are still using 2/4/5. I’ll believe it when I see it.
Telling people to micromanage their utilization monthly is counterproductive even with FICO10T and VS4 because the trended data will still work in your favor with AZEO.
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u/Head-End-5909 Dec 09 '25
I never advise people to manipulate their utilization, like those advocating AZEO. That’s totally different than maintaining a low utilization.
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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ Dec 09 '25
You don’t need to maintain low utilization either. The trended data is just that, trended. If you have an upward trend (carrying balances) you will be penalized. If you have relatively flat utilization or a downward trend (paying balances in full) you will not be penalized.
The trended data is meant to separate those who are paying their balances in full from those who are carrying revolving debt.
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u/Head-End-5909 Dec 09 '25
My utilization is only maintained because I only charge a small % of my total CL. It’s organically maintained. FFS -Why would I or anyone else charge more than needed??? 🙄
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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ Dec 09 '25
I’m not referring to your specific situation. I also have high enough limits that I don’t ever have high aggregate utilization, but many posters in this sub are starting out and have low limit credit cards. Most adults will organically spend $500 a month, thus maxing out their card. There’s nothing wrong with that, and in many cases is essentially required in order to qualify for significant CLIs.
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u/Head-End-5909 Dec 09 '25
You ignore that scores matter in non-CC/loan applications. Per OP’s situation, CL was reduced.
Issuers periodically check scores and may adjust CL and interest rates based on score changes.
Utilities and services can also check your credit to determine whether deposits are needed.
Auto and home insurance providers often check credit to determine premiums, given that state laws permit. These can occur at every renewal.
Certain jobs check credit of job applicants.
Again, consistent utilization matters in trending scores.
My statement stands that consistently low utilization (for everyone) is better than manipulating utilization. That “myth” argument is not accurate because it’s based on specific use assumption.
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u/superaction720 Dec 09 '25
Your score didn’t go back up 70 points because once the late payment hit, your credit card companies cut your limits, and that made your credit usage look higher. Even though the late payment was removed, the lower limits are still dragging your score down. The good news is it’s not permanent just keep your balances low and pay on time. After a few months your score will start climbing again, and you can ask for higher limits once things settle. You didn’t mess anything up longterm, it just takes time for the system to catch up.
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u/True-Button-6471 Dec 09 '25
This is a good reminder of why you should have autopay set up for at least the minimum payments.
If checking your actual report as u/Funklemire suggests shows that the late payment has been removed, you can try requesting credit limit increases to start raising your limits again.
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u/DoctorOctoroc ⭐️ Knowledgeable ⭐️ Dec 09 '25 edited Dec 09 '25
As I understand, the late payment dropped your score 70 points, then the other accounts saw a CL decrease, the late payment was removed via goodwill adjustment, then your score went back up 24 points. Is that correct?
My guess is that at the same time your score recovered from the late payment, it also suffered from higher utilization and the net change was +24 (+70 for recovery of late payment, -46 for the higher utilization). I'd wager the cards reported separately if you saw additional a score decrease after that initial 24 point recovery.
The good news is that score changes due to utilization can recover in full in as little as 30 days once new balances report across your cards. If you had a $400 balance reported on that $12k>$500 CL card, for example, your utilization went from sub 1% up to 80% and that individual card's utilization would definitely hurt your score a lot. but it'll recover once the utilization on that card is down.
As a scoring metric, utilization (and the 'amounts owed' factor as a whole) only really exists to let lenders know 'this person owes some money right now'. When you no longer owe money, it's not longer an issue, hence the potentially speedy recovery from high balances on CC's as they typically report once each month.
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u/I-will-judge-YOU Dec 09 '25
Yep, this all seems pretty darn normal, you do realize that you missed a payment, right? But honestly, they shouldn't have even remove the late pay from your credit report. And I'm shocked that they did, but that does not stop the Domino effect that it created. All you can do now is rebuild over time.
I'm also guessing when they remove the late payment.They did not replace it with positive history.It was neutral, so you still lost the positive momentum.You had gained , they did remove the thirty day late , but they didn't show it as a positive repayment either.
There are also over 40 credit scores between the 3 major credit bureaus. Every model and bureau is going to have a different score and they're gonna wait things differently.That's the whole point of having so many scores. But there is nothing you can do at this point.
Wait six months and then try to get an increase on your existing credit cards and keep your utilization way down. But don't stop using the cards.Because then the credit card companies are unlikely to give you an increase. Just make sure you pay off the full balance versus just the statement balance.When you get it , that will help your utilization score But it should leave just a little bit left over so it can report the payment history
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u/CombinationAromatic6 Dec 09 '25
Obviously I realize I missed a payment. I did make the post after all. Things happen. Life is busy. I have never made a late payment before and my standing with that company has always been good. They were kind enough to acknowledge that and remove it from my report. Anyways, I’m sure you’ve never ever make mistakes 🙄
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u/I-will-judge-YOU Dec 10 '25
Point is this the consequences for your actions. It's not even about making a mistakes but there is a domino effect.
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Dec 09 '25
[removed] — view removed comment
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u/I-will-judge-YOU Dec 10 '25
There is some rational for different reports but there are way too many.
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u/CanadaHomeFinancing Dec 09 '25
The best is to call your credit bureau and your institutions for clarity. Your credit limit drop sounds too drastic to be triggered strictly by a credit score drop. And you are only at 670 which is still considered fair.
The credit drop may have triggered them to check your file and they noticed something else to warrant the credit limit droo
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u/DoctorOctoroc ⭐️ Knowledgeable ⭐️ Dec 09 '25
Your credit limit drop sounds too drastic to be triggered strictly by a credit score drop.
You may be surprised how reactive some banks can be. This economy has them more hesitant to grant CLI's and quicker to decrease CL's in cases like this. We've seen a lot of balance chasing lately, as an example. I doubt they reacted to the drop itself and more so for the reason for the drop, the missed payment.
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u/CanadaHomeFinancing Dec 09 '25
It still seems too drastic. 1 missed payment in over however many years of credit history should not have that level of impact. Something doesn't match up.
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u/DoctorOctoroc ⭐️ Knowledgeable ⭐️ Dec 09 '25 edited Dec 10 '25
We don't know what other behavior might have triggered red flags. OP may have previously carried a balance for a few months while paying minimums, been making payments too frequently on their account (this can be seen as risky behavior as it aligns with someone who doesn't trust their self not to spend money in their checking account so they pay bills early so it's not there to tempt them), or previously had a payment that was a few days late (not enough to incur 30-day late payment on their credit report, but their card issuer would surely take note of that).
We also don't know how young their credit file is - if they've been using credit for only a year or two, a single 30-day late is a big deal to some. And on top of all of that, creditors are more careful now than they've been in the past few years, more eager to protect their interests in an economy where more and more people are defaulting on their debts.
Any sort of less-than-ideal activity on the account OP has with them could have primed the decision once the 30-day late payment hit their report and a soft pull revealed it to the card issuer. Either way, it's not detrimental to OP. They had the late payment removed and thus recovered the full amount of the score impact related to that - the rest of their score deficit is likely due to utilization which is always in flux on a normal credit file and only really matters when they're going to apply for something, in which case AZEO has the same result whether someone normally spends 1% of their limit or 100%.
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u/Bird_Brain4101112 Dec 09 '25
Friendly advice: Once a month, I log into all my CC accounts just to review balances etc. takes about 20 minutes and ensures I don’t overlook anything. I have 12 CCs so this requires about 8 logins (multiple cards from some issuers) but it’s literally login and if all looks well, move on. This way I don’t overlook AFs, or miss any fraud transactions on unused cards.
I also use Monarch to keep an eye on all my accounts. Monarch is not free so it’s not for everyone but I like being able to see all my accounts in one place. I still do my monthly logins though.
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u/CombinationAromatic6 Dec 09 '25
I will definitely be doing this now. I honestly forgot about that card entirely but now I’ve taken an inventory and am checking all cards every month
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u/Select-Awareness3304 Dec 09 '25
Send the letter you received from the credit bureau regarding them fixing the late payment matter. If the credit bureau agreed, then hopefully you credit card company will too
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u/trainhasnobrakes Dec 10 '25
The utilization hit from those limit drops is probably what's keeping your score down now, not the late payment anymore
Have you tried calling the card that dropped you to 500 and asking for a credit limit increase? Sometimes if you explain the situation and show the late payment was removed they'll reconsider
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u/Funklemire ⭐️ Knowledgeable ⭐️ Dec 09 '25
First off, which credit score are you referring to?
And are you sure the late payment was removed? Go to annualcreditreport.com, that's the only way to check your credit reports with 100% accuracy. That's the source data so it's not filtered through a commercial credit monitoring site (which includes the three bureaus' websites).
The site used to only be available once a year (hence the name), but now you can pull all three reports for free each week. It's kind of a janky-looking site, but that's because it's government-mandated and nobody makes a profit on it; it's totally legit.
And your post is another example of why the "closing credit card hurts your credit" myth is so nefarious: You should close unwanted and unused cards, especially if they have annual fees. Unfortunately, we see this kind of thing happen all the time with unused cards.