FICO Score change

Question

I recently learned of a drop in my FICO score from 820 to 808.  I cannot think of any reason for this except I cancelled my AMEX Gold Card after 52 years because of the annual $55 renewal fee and lack of need.  About the same date I received notice from Skype that my annual fee for subscriptions for two telephone numbers for use with their service had failed to be paid.  I had no outstanding charges for service usage and simply wanted to let the telephone numbers expire.  I think Skype had tried to charge the subcription renewal against my AMEX card just after cancellation.  I am now getting daily reminders from Skype by email that my subscriptions have expired but offering extended dates for renewal.  I am also notified that I will not be able to purchase other services or products until the subscriptions are paid. Would these circumstances warrant a 12 point drop in my credit score?

Answer 1

houndear wrote:
I recently learned of a drop in my FICO score from 820 to 808.  I cannot think of any reason for this except I cancelled my AMEX Gold Card after 52 years because of the annual $55 renewal fee and lack of need.   I am now getting daily reminders from Skype by email that my subscriptions have expired but offering extended dates for renewal.  I am also notified that I will not be able to purchase other services or products until the subscriptions are paid. Would these circumstances warrant a 12 point drop in my credit score?Not enough info here to establish root cause.  I would suggest getting a copy of a CRA credit report and score. Check for new inquiries. None of what you said should allow for a hard inquiry but who knows. Look for any new reason codes associated with your score as they can point you toward cause for a score change. Check to see that Skype has not reported a late payment associated with their attempt to charge your AMEX. Also, look to make sure your AMEX was not closed with a non zero balance. Closing a high CL credit card will drop your combined credit line which results in an increase in aggregate credit utilization %. If utilization crosses a threshold, say 10%, this can drop score. However, if your AMEX is a charge card then it does not have a CL and should not factor into your combined CL. P.S. The 52 year age of your card will still count toward your AAoA for as long as it is listed on your credit report (closed accounts drop off 10 years after date of closure).