@Anonymous wrote:
Hi,
Recently my credit score dropped 25 points and I'm not sure why. There hasn't been any new hard pulls (if anything, pulls from last year must be gone by now) and my credit utilization hasn't changed either. Why can this usually happens and how can I get my credit back up? I'm a bit concerned since my wife and I are looking to buy another house and I believe 760 is the magic 'number'.
Here are some items to consider:
- Currently have a mortgage
- Car loan got paid off a few months ago (my score dropped before this happened)
- Have 3 store cards (don't use them) and 3 major credit cards (I utilize one of them for about 15% and I always pay off my balance)
- No debt, credit card balances, bankrupcy, etc
What would be the best way to get my credit score up again? Should I use all 3 of my credit cards or just 1? Thanks!
Hi, welcome to the forums!
First of all, which credit score (Equifax = EQ, TransUnion = TU, Experian = EX), and is it a FICO, or just a non-FICO credit score, aka FAKO?
If it's a FAKO, there's no telling why it dropped. FAKO scores come from non-FICO formulas, and these formulas weight things differently, and we don't know how they work. (We don't really care how they work, either, since they're pretty much not used by lenders.)
If you have a FICO score, acquired (most likely) from this site, check on screen two of both reports, where they list your negatives and positives. What are the negative factors listed for each score, and in what order? Has something new appeared, or has the order changed, or has some number changed, like your revolving utilization?
As for a quick score change, your best bet is to use as many of your cards as often as you like, but be sure to pay all but one off 4-5 before its next statement date. Paid the remaining one down to $10-$20, let it show up on your statement, and then pay it off. If you wait until the amount due reports on the statement, that's the amount that's reported to the CRA's. But if you're only letting one card report 15%, it's probably not that big a factor.
Exceptions to the statement date bit mentioned above: HSBC/ Orchard bank cards (not store cards like the HSBC Best Buy store card), along with US Bank cards report your balance as of the last business day of each month. So do your payoffs based on that timing instead.
But otherwise, if you'll post the before and after negatives, we can help you make an educated guess.
Oh, and also, if one score is a FICO and one is a FAKO, or if both are FAKO's but different types, you can't compare the two scores. Different formulas; different score ranges; different results.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
