Credit Score drop

Hi Heartslovegrannie,

Your credit score is based upon multiple factors. Good Debt, Bad Debt, Payment History, Actual Credit Available, Debt to Income Ratios, etc... I am not positive as to why it keeps going down 5 pts a month, however, no credit is almost as bad as too much credit.

You say you have one credit card? Is it maxxed out? do you keep a 50% balance open on it? These are things to consider. The payments you make do not necessarily effect your credit. Unless they are late of course!

Your score is reflected by the amount of credit you have available vs. what is used. So for instance, if you have a $2000.00 limit and you owe $2000.00 interest free or not, then you are at 100% capacity (maxxed) your credit score would drop. If you have $2000.00 limit and your balance is at $1000.00 and going down, then your credit score would improve. The fact that you have a mortgage paid in full = no credit and a car paid in full = no credit, then my assumption is your lack of credit is what is making your score go down. Try to keep all credit at 50% of limits, pay on time, maybe get a couple more credit cards (dont use them, except maybe $50.00 and pay if off at the end of the month,etc..)This should increase your score.

I hope this helps give you a little more understanding. I have been working with credit and finance for over 10 years. :D

Take Care and God Bless!

WHat I meant in the above message is that only one of my credit cards has any charges on them. If you added up the various credit cards I do and their limits what I have in debt is less than 10% of what my available credit is.
Thanks for the advice. I will try your advice and see if that works.
I figured that after the big drop from the one collector it would start working its way up.

that is very strange hearts....
I would question as well....
from what I have learned... your available credit you HAVEN'T used brings up your credit rating and I can testify to that....I have zero balance on several cards over 10,000 limit and even though I will not use them (after I paid them off)..I kept them open knowing it would bring up my credit score..they keep sending me balance transfer offers and uping my limits...hoping I will take the bait..but nopes..I'm NOT using them and in turn using company instead!
have you pulled your credit reports? very weird that your score goes down 5 pts per month ..unless your assets..home equity and value ..verified income.. etc...is a part of this picture
by the way san..I am not an expert at all but I think...

It seems like this at times is a ploy by credit reporting companies to make more money. In Dec I did my yearly free credit report and nothing strange was on it. Just a couple of weeks ago I did a free trial thingy to get my report and nothing strange again. Yet my credit score went down another 5 pts again.
I mean how often can one afford to drop $50 to see what is happening to your credit score with all three agencies. Its either that or keep finding new free trail offers.

The goal of a business is to make money, and misleading through advertising is part of the process.

If you are only building payment history with one account, then your file would still be "thin."

I would guess that the FICO formula is calculated not only on the overall balance carried to credit limit, but also based upon the balance carried to credit limit of individual accounts (thus one account with a high balance due would probably lower your score). If you used another card (or two, or even three) for minor purchases and pay in full every month, your score should see a gradual uptick.

but if hearts has only one card open and pays more than minimum?..Is she a victim of identity fraud?..getting illegal "Hard hits" inquiries to credit report each month? if balance is interest free..consumer has a great credit rating which should not keep falling 5 points a month and if it is.....something not good here! am I wrong to assume this?

Morning you stated....

would guess that the FICO formula is calculated not only on the overall balance carried to credit limit, but also based upon the balance carried to credit limit of individual accounts (thus one account with a high balance due would probably lower your score). If you used another card (or two, or even three) for minor purchases and pay in full every month, your score should see a gradual uptick.
_________________I so totally agree!!!!but individual above stated only has one card open!!!!! how is there a so called uptick ....


if you don't owe on anything else?

hi hearts

When you monitored your report, did u take a look at the accounts opened in your name properly and more importantly the name of the businesses pulling your credit report for inquiries? It might be possible that someone else is using your personal info to obtain new credit.

Nelly

OP stated she(?) has several cards...only one carries a balance. I can only assume that it is the only monthly payment currently being reported to the credit bureaus...unless OP says otherwise.

HLG, are you planning on purchasing a home or car soon? So far as I can tell, that is the only reason to check your score so often...to buy your score, solely for the sake of knowing seems frivolous to me (of course it is a ploy...that is what advertising is).