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HOw come we easily lose points when it is so hard to build i

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naomi

Joined: 14 Feb 2009
naomi's page
Posts: 9

344 Magic Points

Subject: HOw come we easily lose points when it is so hard to build i

Mon Feb 16, 2009 1:58 am

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!!!

Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1240

28942 Magic Points

Mon Feb 16, 2009 8:47 am

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.
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Justin

Mary

Joined: 06 Jul 2006
Mary's page
Posts: 686

17396 Magic Points

Mon Feb 16, 2009 8:55 am

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.
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Where there's a will, there's a way !!

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 4285

127 Magic Points

Mon Feb 16, 2009 11:25 pm

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.

scott

Joined: 28 Jun 2006
scott's page
Posts: 446

10878 Magic Points

Tue Feb 17, 2009 11:49 am

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.
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SCOTT

Use your credit account responsibly and enjoy a debt free life.

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 4285

127 Magic Points

Mon Feb 23, 2009 2:05 am

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.

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