credit score makes no sense

[jamescb77]

TweetSo i have one of those programs where you can track your credit and score and see how your doing. I realize these things are not perfectly accurate but it seems they are in the ballpark on most things. So last months i pay off a 1500 dollar student loan and pay 1000 on my credit card. I have a few mess ups that are about 6 years old now but they still show. well my credit usually shows about 660 i check it today and it shows 607. how the hell can it drop that much after paying a loan of and bring the balance on a credit card down 1000 bucks. I haven't missed a payment and i just don't get it.

[skinnyman]

Tweethave you opened any new credit cards, applied for a mtg or other type of loan?

[alluprbdy]

TweetTHat is pretty strange, id make sure there isnt a late payment showing up incorectly

[jamescb77]

Tweeti have done none of those. I doesn't show any late payments on any of the account on the whole profile. Im guessing maybe it's just a number calculation mistake. If it doesn't change in the next month or so im gonna have to figure out what is up. Also found out my 3 big negatives will fall off in august so i gotta say im pretty pumped about that.

[tiny]

TweetThe main things that impact your credit score are:

Payment history, especially recent history. Usually once a payment is delinquent 30 days or more, you will get hit. The more past due you are, the harder it will hit.

Debt to Available credit ratio. If you are maxed out or near your credit limit on one or more accounts, it will lower your score. It is beneficial to keep credit accounts open, even if you don't use them..this may help keep your debt/available ratio down. On credit cards you don't want to go over 50% total utilization, below 25% is best.

Debt to income ratio. Clearly this is important to creditors as the risk of over extending yourself is monitored.

Account tenure. Another reason to keep accounts open. Long established relationships with a bank/credit card company show dependability. They measure the average length of accounts being open....another reason to keep cards open even if they go unused.


If you are solid with the above items, you have the most of the credit score battle won.
Other items that will impact the score would be.

Recently opened accounts
Ratio of revolving account debt to installment account debt.
Credit report inquiries (minor effect on score)



Paying down your debt should raise your score, not lower it. Keep in mind that the banks may not have reported these payments to your credit file yet. Also, the three credit companies may have different scoring from month to month. Give it a couple months before you get worried about the drop.

[JsJs24]

TweetI only check mine about 2-3 times a year if that. I use annualcreditreport.com since it is free. By the way, that is the only truly free credit report service. The federal government made it a law several years ago for all three credit agencies to provide one free report each year, and the site I mentioned is the only way I know of to check it. However, you have to pay for your score if you want it. Only the report is free.

With that said, I wouldn't be surprised if these credit monitoring services screw with your number and report to get you hooked on having there service. I have never had any major errors on mine, just the typical wrong address and job, which is never correct. I think checking it too much is not necessary. Check it every quarter or twice a year and you'll be fine. When you pay something down or off it can take a couple months for your score to reflect it.

[FUZO]

Tweetyou shouldnt check your credit much at all because you do take a hit every time its ran

[daved150]

Tweeteither a glitch or you checked a different source than last time. there's tranunion, experian and equafax...all will be different....you all can get a combined score of all 3 or any 2!!! those credit checkers are good to watch for I.D theft....from what i hear from customers i wouldnt put that much weight in them...just keep doing what your doing and you'll be fine