I just got a new credit card and my scores dropped, did I do something wrong?
You did the right thing by opening your new credit card, and it will produce awesome results. Your FICO scores fell temporarily due to the presence of the new untested debt, but before long you will see your scores rebound, and more.
A Predictive Model
The FICO credit scoring formula is a predictive model designed to measure the risk of lending you money. Your credit repair effort will benefit dramatically from your new credit, but there is a short term sacrifice involved. The first few months that any new account shows up on your report your FICO scores will fall because the new debt is untested. The new account is interpreted by FICO as the presence of new risk, and your scores lowered to warn prospective lenders.
Your Scores Will Climb
Once a few months have passed and you have made your payments on time and proven your prudence by keeping your balance low, your scores will start to climb. You will be well rewarded.
Be Careful of Your Balances
A small warning. If you make the mistake of charging up your new account to the limit your credit scores will drop significantly. This happens frequently when the limit on a new card is very low. It is easy to use up a card when the limit is only 200 dollars. While you are in credit repair mode you should think of a new card as a tool and manage it with great care.