The other day when i checked on my credit score it was on the mid 700's. I was only shocked when my score dropped tremendously!!! How come we easily lose points when it so hard to build it up!!!
There are many reasons for decrease in credit score. Firstly, it may be due to the fact that some of your delinquent credit accounts have not been listed in your report so far, but now it got reported there. Secondly, it may be due to the fact that you are not delinquent on any of the accounts, but your debt to credit ratio has increased. Now, since "amounts owed" contributes about 30% in your credit score, your credit score has fallen.
Hi Naomi
Justin is right, but there are several other reasons as to why your credit score may go down. One of them is hard inquiry. If you have applied for new lines of credit and the creditors have pulled out your credit report, your credit score may go down. I think you should pull out your report and check the reason behind the fall in score.
What time frame was there between the higher score and the lower one? This si where your problem may lie. By looking throughly through your report you will see what the culprit is. Can you remember opening any new accounts? Defaulted on any? It may even be an error but you will have to dif through the report and see.
What i think is that, your must have closed any of your credit cards with a good credit history, which has resulted in lowering of the score to such levels. Hard inquiries may reduce your score, but by as much as 10 to 20 points. You should pull out your credit report and find out the reason behind the fall in the credit score.
You should always leave long standing accounts intact. This can cause a drop in score very quickly. Sometimes when you go to the bank for consolidation loans they like to send letters along with the check asking the account be closed. This is not always a good idea. Even if you leave a small or zero balance at least leave the cc open.
There are many reasons for decrease in credit score. Firstly, it may be due to the fact that some of your delinquent credit accounts have not been listed in your report so far, but now it got reported there. Secondly, it may be due to the fact that you are not delinquent on any of the accounts, but your debt to credit ratio has increased. Now, since "amounts owed" contributes about 30% in your credit score, your credit score has fallen.
Hi Naomi
Justin is right, but there are several other reasons as to why your credit score may go down. One of them is hard inquiry. If you have applied for new lines of credit and the creditors have pulled out your credit report, your credit score may go down. I think you should pull out your report and check the reason behind the fall in score.
What time frame was there between the higher score and the lower one? This si where your problem may lie. By looking throughly through your report you will see what the culprit is. Can you remember opening any new accounts? Defaulted on any? It may even be an error but you will have to dif through the report and see.
What i think is that, your must have closed any of your credit cards with a good credit history, which has resulted in lowering of the score to such levels. Hard inquiries may reduce your score, but by as much as 10 to 20 points. You should pull out your credit report and find out the reason behind the fall in the credit score.
You should always leave long standing accounts intact. This can cause a drop in score very quickly. Sometimes when you go to the bank for consolidation loans they like to send letters along with the check asking the account be closed. This is not always a good idea. Even if you leave a small or zero balance at least leave the cc open.