Why is my credit score (FICO) so low all of a sudden?

It has dropped nearly 80 points in the last two months ~Ive never been late on a payment (always pay extra) ~I have had only three inquries ~my credit limit on a CC was increased by $500 and I've used that ~I pulled my credit report from all three agencies and do not see any activity that would be considered unusual or out of the ordinary I did claim Chap 7 many many many years ago and my credit score has improved significantly within the last two years - so I don't think that is affecting the score. Any suggestions?

Public Comments

1. "...my credit limit on a CC was increased by $500 and I've used that....." your maxed out card is making you look like a credit risk. thats why your score droppped.
2. Your fico score is comprised of the following things: 35% Payment History 30% Amounts Owed 15% Length of Credit History 10% New Credit 10% Types of Credit Also for every inquiry you have you loose aproximately 10 points off your score. So there is 30 right there. You have increased your debt and that is 30% of your score...so that is probably the rest of what you lost. You can loose a lot of points just for going over the 50% of available credit ratio...if you want to improve your score bring your available credit down to below 50% (so if you have $1000 credit limit, you should only have it at $500, once you go over $500 you start loosing points).
3. If your credit limit was increased and you immediately went out and added that amount to your debt it would have an impact on your score. Part of your score is determined by your debt to allowable credit ratio.
4. my friend also had a 150 drop in his credit score due to opening new accounts,but the majority of the points coming off is the credit utilization percentage. The higher amount you utilize from a credit limit, the more of a perceived risk you are. You can see a similar blog where there is this type of high utilization+ new cards oped that do this at. http://www.paulsideas.com
5. You credit score is a function of about five to six factors. One is history - after the Chpt 7, it sounds like you've done the right steps to increasing your credit Two is usage of cards - you can have several cards, and make the payments on time, but what is the ratio of your max limit to your balance. If you are maxing out your cards or even over 50% ratio, your score will go down, even if you make all your payments on time. Three- is type of credit that you have - credit scores are also derived by the blend of credit you currently have, i.e. one mortgage, one or two car loans and about five credit cards with limits and low balances equals a higher score. Definitely stay on top of your credit and it good to get more information.
6. I agree with SCH except to limit for credit cards before your score takes a hit is 30% not 50%.
7. You maxed out your credit card. DUH.