Just last month my credit score was at 717. I had a car loan and some other credit cards. I took out a line of credit to pay off my debt (my car loan included) I have 26 paid off (good standing) remarks on my report. I have one collection on my report and 6 items I am disputing. Now my credit score is only 630 and I have paid off all my credit card bills and debt. What's going on!?
2007-01-28 03:19:27 · 6 answers · asked by n2art2002 3 in Business & Finance ➔ Credit
There are a number of things that occurred to cause your score to drop. Taking out a new loan decreased the average age of your credit, one of the most important factors in the credit score. FICO calculates the age of your credit, and the older the better. By opening a new account, you also have a very new account on your credit file, which also increases the level of risk. You also had to have at least one inquiry, which is another factor. The other thing is your disputes. By disputing adverse items on your credit file, the date reported is becomes more recent, because the companies you dispute have to report their responses to your disputes. If your collection hasn't been reported on for a few years, that can make it look newer, and unfortunately, the FICO calculation cannot differentiate between a new collection and a newly reported collection - a serious flaw in the Fair Isaac scoring system.
The other thing to look at is who gave you a score of 717. Different score sources use different scoring models, and using different ones can also result in inconsistencies.
The key to your score is not to panic and start closing accounts or disputing everything on your credit report. Be patient, and allow your accounts to age properly, maintain the same number of accounts as much as possible, and, above all, make all payments on time. Your score will improve with time.
2007-01-28 04:40:18 · answer #1 · answered by RedSoxFan 4 · 2⤊ 0⤋
1. You took out a loan.
2. Your total credit available has increased.
I'd be suspicious of a 717 score with any collections or open disputes.
2007-01-28 03:24:09 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I'm not sure, but I think the longer an account stays in collection status, the lower you score becomes. Plus your car loan hurt you a little too.
2007-01-28 03:38:46 · answer #3 · answered by Camden 2 · 0⤊ 1⤋
Credit scores are weird. If you just apply for a loan and they make an inquiry about your credit record, that inquiry by itself lowers you credit score.
2007-01-28 03:23:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
did you close all of your accounts? that lowers your score. if you close the account, part of your credit history length is wiped out. is credit line you took out high relative to your income? that can lower your score. is the collection new? that can way lower your score. look at the disputes on all of your reports. if one is listed as unpaid, that will hurt it too.
2007-01-28 03:27:27 · answer #5 · answered by Jen 5 · 0⤊ 1⤋
Talk to the credit reporting agency. It sounds like maybe all the action and shuffling has made them concerned.
2007-01-28 03:27:58 · answer #6 · answered by collinbarnette 2 · 0⤊ 1⤋