Two weeks ago I signed up Score Watch and got my first FICO score. Since then, I have paid off my 3 credit cards, received increases in my credit limits from all 3, and contacted the credit bureaus to update some information. I had a bankruptcy 6 years ago, but some of the creditors that were included in the bankruptcy had my account listed as bad debt/collections. All 3 credit unions updated this information to show that the creditors listing me as bad debt/collections were indeed included in the bankruptcy. One of the credit unions actually deleted the creditors that were listed as bad debt. I felt really good that I was finally on the right track and anxiously awaiting my first credit alert update. Well, it came yesterday and my score dropped 13 points! I don't understand. Here is what the report said:
Your FICO score has dropped; your interest rate on a new 48 month auto loan may be more expensive. I do not have a new auto loan. I purchased a new auto last year in July with a 60 month term and have not changed it. The report also said:
There was a change on your credit report that lowered your score but did not trigger an alert. For example, the balance on an account might have increased enough to lower your score, but not enough to trigger a balance increase alert. (How could this happen when I paid off all my debts?)You moved from one category of credit users to another as time passed. For example, you may have transitioned from the category "consumers with a new credit history" to the category "consumers with a two- to five-year credit history". As a result, your credit report is evaluated differently, causing a slight change in your score. The good news is that moving between categories like this usually offers you the potential to reach a higher FICO score in the future.I don't understand what any of this means. I went from a 662 to a 649, not good news when I'm trying to rebuild. Did contacting the credit unions hurt me? HELP!