Let me start by saying i've found very valuable information on this board and kudos to all who are getting out from under debt and raising their scores. This is my first post. I too have been paying off credit card debt and watching my score steadily rise ::::::::: until this month. I suscribe to a credit monitoring program through amx and i also have one on my wamu credit card. Both have been showing a score of 728 for the past few months. I went to a car dealer to check out new cars and knowing that more important than the montly payment is the % rate for the car loan i was adamant that i wanted one of those sweet 2.9% deals. The F&I guy comes back and tells me i don't qualify for the 2.9 but he would give me the next one which 4.something. I'm telling him "but my fico is 728" and he says, "no it isn't, it's 693". And he shows it to me on paper. let me get to the gist of this story. i go home (without that shiny new car thankfully,because it would have been an impulse purchase anyway) and i look on both sites, both are still showing the 728 score. So when i make my payment on the wamu account (online payment of course, i swear paying my bills online has made a world of difference, no late payments) the next day i look at the score and it's been updated for the month of July and lo and behold it's 693. So i'm thinking how could this have happened. Bingo, at the end of May i purchased a new a/c on one of those 6 months no interest deals. it was roughly $400.00 and that's the only new credit i took on. Could that purchase possibly dropped my score so drastically, even though i pay way more than the minimum required on my other credit cards each month?
Speaking from minimal presonal experience, the higher the score the bigger the drop from an adverse event. And new credit can initially hurt your score (inqs and new credit and reduction in average age) even though it is good in the long run.
And that is not a huge drop, even it happens to frop you one level in terms of a loan APR.
It will build up again
The slide from grace is really more like gliding And I've found the trick is not to stop the sliding But to find a graceful way of staying slid