6 point score drop!

[tallamy]

I really don't understand ... if I am no longer using my credit cards and am only paying them down, the balance is lower every month.

So WHY ... if nothing else changed and the only factor is the outstanding debt (which is decreasing due to monthly paymens) did I lose 6 points?!

I have "exceptional" "exceptional" "very good" and "good" classifications (one category actually changed from "poor" to "good") .... so WHY did I lose 6 points from Sept. 15 to Oct. 31?!  Shouldn't I be gaining points?

[Anonymous]

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@tallamy wrote:

I really don't understand ... if I am no longer using my credit cards and am only paying them down, the balance is lower every month.

So WHY ... if nothing else changed and the only factor is the outstanding debt (which is decreasing due to monthly paymens) did I lose 6 points?!

I have "exceptional" "exceptional" "very good" and "good" classifications (one category actually changed from "poor" to "good") .... so WHY did I lose 6 points from Sept. 15 to Oct. 31?!  Shouldn't I be gaining points?

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Do you have access to your credit reports? It could be anything. Any new cards just reporting? How about utilization overall and on individual cards? Any of those things plus other things could cause the drop. Drops are usually temporary, though. I just had an 8 point drop on Equifax when a new account posted for the first time.

[NRB525]

Well, can you expand on your situation?

What are your scores now?

What cards and credit limits do you have, and what balances are you showing on each of those accounts?

Are there any derogatories on your account?

Have your scores been improving recently?

Have you applied for any new credit, either credit cards, an auto loan, any sort of mortgage or term loan?

Did you close any accounts?

There are a lot of potential factors that would be possibilities to explain the score drop, but we can't provide the possibilities without more information on your situation.

[tallamy]

That's why I'm confused ... utilization was high, but now I'm not charging and just paying down.  Balances change each month - lower - not higher.

No new accounts ... so no new reporting.

I expected to gain points ... not have them deleted.

[tallamy]

It appears that I have been losing points since May, 2015 ... The high was 773 ... dropped to 765 ... dropped to 763 ... dropped to 759 ... dropped to 753.

There are no derogatories ... payment is always on time, or early ("exceptional") ... credit card history 25+ years ("excellent") ... no new credit ("very good") ...

debt ratio to credit limit has always been "poor", however now appears to have changed to "good" ... I have no mortgage or installment loans ... I understand these affect negatively, however this has always been the case - nothing changed since May and the debt has been decreasing with payments ... not increasing.

[NRB525]

What cards and credit limits do you have, and what balances are you showing on each of those accounts?

There is a reason why your scores declined over that time period, but without specific details (the rest of the story) we won't be able to propose any possible reasons. The question about the reporting balances relates to whether all revolving accounts are reporting zero, or shifting to charge cards.

[Anonymous]

Check your credit report very carefully.

Did you close any accounts? Pay off an installment loan? 

Don't sweat it, as those balances come down you gain financial freedom which is more important than your score, and your score WILL catch up, so long as you keep paying on time, etc.

[Anonymous]

Ur score will drop even if ur paying on time cuz u have high debt ratio compared to credit limit available

[NRB525]

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@Anonymous wrote:
Ur score will drop even if ur paying on time cuz u have high debt ratio compared to credit limit available

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OP already clarified that balances are coming down, and with scores at 770 initially, it is unlikely that high utilization was a factor earlier.