Submitted by Certain-Border6209 t3_zzvvq0 in personalfinance
Both wife and I dropped credit scores without any late payments and not extravagant spending, anyone know why that could be?
Comments
Default87 t1_j2du7lb wrote
how many points did it drop?
Firm_Bit t1_j2du9bs wrote
To understand credit scores you need to understand the algos behind their calculation and it’s not really worth anyone’s time.
Just keep being financially responsible and it takes care of itself. No need to obsess over any single change.
Humble_Signature_993 t1_j2dvcuy wrote
More details are needed eg how much did it drop. Do you use credit karma, mint, or a number of other financial tools that track your credit score? These sites will usually provide an explanation for the difference in score. Credit utilization and missed payments impact score the most, but credit hard inquiry or credit age drop (due to closing old account) can also impact.
Certain-Border6209 OP t1_j2dwnj4 wrote
Hera dropped by 90 points we checked transunion a s there is no new items in there. She did get an Amex Platinum but we have been paying it off the past 2 months.
Law5_LOTG t1_j2dwrk8 wrote
What are you using to check your scores? Is it a Vantage score? Did you finish paying off a loan? Did you open a new account? Did you have a new inquiry?
It could be any number of things.
svenomojligt18 t1_j2dxcix wrote
Did you increase your balance on a credit card ? Or take out any additional loans?
Depending on the agency, they use several methods to calculate credit score. I believe most of them look at your overall credit card balances against your allowable limits. If you exceed certain percentage amounts your score may go down temporarily until you pay it down below that threshold.
There could be other reasons of course, but this one sticks out to me because last year I had to make a big payment and I used my credit card. For the month my credit dipped like 40 points, but when I paid my full statement (which I do every month) it went back up.
Hope that helps and good luck!
[deleted] t1_j2dxr9l wrote
MarcableFluke t1_j2e67ra wrote
Probably utilization. You can double check your credit report to make sure there are no late payments or unexpected new lines of credit. Beyond that, it's not worth worrying about.
[deleted] t1_j2eqyr6 wrote
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carcigenicate t1_j2f2n5p wrote
Mine will randomly drop 40-50 points, then go back to where it was the next cycle. I haven't figured out what causes it. Unless I let my utilization pass some low threshold or something.
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