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why is my credit dropping?

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Anonymous
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why is my credit dropping?

My scores 6 months ago were credit karma (tu) was like 525, experian was 512. Had 5 or 6 negative account from 2008, and like 12 inquiries. Had 2 F PREMIERE cards maxed. Only 300 limits. Paid them off, got a new card with a 500 limit, and a fingerhut with a 600 limit and scores jumped. Experian 660, CA 640, equfax 630. Lexington informed me to get some more positive accounts so I did shopping cart trick and got 4 new accounts. All together I have 9 positive accounts now and lexington actually got 3 negatives removed. Past week or so scores dropping like 20 pts each. Is this just temporary and the new accounts will help me in the long run?
Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: why is my credit dropping?

Avg age of credit is like 1yr, I know that's hurting me. I thought as long as there are more positives than negatives I was good. Some people told me I hurt my credit in the short term, but in a year or so my credit will jump big again. And in a few months all negatives but 1 a hospital bill wil be 8 years old and should fall off anyway hopefully. I'm in negotiations to pay this hospital bill on a stipulation that they fully remove it from reports. So in a year my credit should show no negatives at all and 9 positives paid perfect.
Message 2 of 6
coldnmn
Mega Contributor

Re: why is my credit dropping?

Your new TLs and inquiries lowered your score.You scores will come back as your average age of acounts improve and after a year your inquiries aren't figured into your credit score after 2 years they are removed. Creditkarma is a fako score and doesn't figure in closed accounts. Hopefully you got cards you will use. From what I have read you would be better off in the rebuilding forum trying to remove your bad accounts than wasting money with Lexington Law.

As you read more of the Fico forums you will realize that it only takes 3 cards to improve your credit.

Good Luck with your credit journey.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
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Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 3 of 6
Anonymous
Not applicable

Re: why is my credit dropping?

Is there anyway to remove inquiries? I ordered comcast and they needed my ssn, but told me it's just for there records and that they do not run credit. 3 days later it's on my reports.
Message 4 of 6
Middleswarth
Frequent Contributor

Re: why is my credit dropping?

A couple comments...

 

Credit Karma scores are not FICO scores.  You will have to ask them why their scores are dropping.  You can get your FICO scores here.

 

You should consider fixing your credit reports yourself and forget paying Lexington EVERY MONTH (what incentive do they have to fix things?). 

 

Having "more positives than negatives" doesn't remove the hit from the negatives.  You need to address the negatives and be patient (again, better to do this yourself, IMO).  And remember it could take years for your scores to rebound if you cannot get your reports cleaned up.. 

Message 5 of 6
takeshi74
Senior Contributor

Re: why is my credit dropping?


@Middleswarth wrote:

Having "more positives than negatives" doesn't remove the hit from the negatives.


It doesn't but if the positive factors outweigh the negatives then the net impact is positive.  However, that's certainly not the case for the OP if the OP is seeing drops.

 


@Anonymous wrote:
Is this just temporary and the new accounts will help me in the long run?

They can with responsible usage but eliminating derogs will have a bigger impact than adding new accounts or trying to dispute inquiries.  Derogs are killing your Payment History, 35%.  Inquiriies (New Credit) are only 10%.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Message 6 of 6
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