Why has my credit score gone down 20 points?

Question

I paid off a large chuck of my debt at the beginning of the year so I though itwouldbe higher..but it'sgonedown 20 points! How? why?

Answer 1

Credit scores vary, and can go up or down on a daily basis.

There are many reasons why your credit score could go down. After paying down your debt, did you close any unused credit cards? Closing a credit card can hurt your credit score, because by doing that, you have less credit available compared to how much you owe.

Also, have you applied for credit, or opened any new credit cards in the last year? Each time you apply for credit, you get a "hard inquiry" on your credit report. Each hard inquiry will show up on your credit report for two years, but will only affect your credit score for one year, and will be less damaging the older it is. If you got approved for a new credit card, this will lower the average age of your accounts, and this will also lower your score temporarily.

The first poster is incorrect in saying that checking your own credit report or credit score will hurt you. This is considered a "soft" inquiry. Only you and the credit bureau see this type of inquiry. It has no effect whatsoever on your credit score.

I would not be too concerned about your credit score being lowered by 20 points. Just pay everything on time, and keep your credit card balances as low as possible. You'll eventually recover your lost points and then some. Don't worry about your credit score until you apply for a major loan like an auto loan or a mortgage. You'll be just fine.

Answer 2

If you closed out the accounts completely or had more inquiries regarding opening new lines of credit that will bring down your score.

The only inquiries that will appear are when you apply for a new line of credit or a company you have credit with runs a periodic check to see if you still have good credit.

You checking your own score will not lower your score of show up on your report. They recommend that you check your report/score at least one time per year.

Answer 3

did you increase a line of credit
did you make an inquiry on the credit report
your' checking on status can also be negative on your report

Answer 4

It depends on how many times you check your score. Checking score many times could cause to lower it - for some reason, if you are not going to borrow or apply for a loan, don't check it. You know if you have a good score anyway, pay on time all the time.