What does this mean?

[Anonymous]

Hello everyone,

I checked my updated score today and saw something that said - (An account on your credit report has been updated) It lowered my score 38 points.

Details

Company GMFNANCIAL

• Balance
• $0

• Past due
• Not Reported

• Status
• Pays account as agreedNot more than two payments past dueNot more than two payments past due

• Last activity
• 09/01/201604/01/201604/01/2016

What does the status part mean where it says not more then two payments past due and why did my score lower so much?

Thanks.

[Berk]

---

@Anonymous wrote:

Hello everyone,

I checked my updated score today and saw something that said - (An account on your credit report has been updated) It lowered my score 38 points.

Details

Company GMFNANCIAL

• Balance
• $0

• Past due
• Not Reported

• Status
• Pays account as agreedNot more than two payments past dueNot more than two payments past due

• Last activity
• 09/01/201604/01/201604/01/2016

What does the status part mean where it says not more then two payments past due and why did my score lower so much?

Thanks.

---

With out knowing more I'm going to go out on a limb and try to answer your questions:

What does the status part mean where it says not more then two payments past due?

That you pay your account as agreed. In other words, you are doing everything you are supposed to do when it comes to paying your account.

Why did my score lower so much?

Because you paid the account off.

There may be other factors that could have contributed to a 38 point drop but it is not unusual to have a paid account cause a fairly significant drop in points. When I paid off my RV loan last year, my scores dropped by 10-15 points across all 3 CRAs.

[RobertEG]

Can you post the Payment History Profile, which shows the date and severity of each reported derog?

[Anonymous]

I just got a updated credit report to see whats going on.  Turns out I got a red flag on that GM account but it says no missed payments?  I have never missed a payment in 15 years this doesn't make sense.  I even have proof of payment to them via my bank account. 

Number of your accounts with a missed payment or derogatory indicator
1 account

That is what it says. 

[Anonymous]

$0	Not more than two payments past due

Seven year payment history [?] 30 days late 60 days late 90+ days late/other derogatory

0 times

0 times

0 times

This is what it says.  I just called equifax and filed a dispute.  I am now on the phone with GM and they are saying they can't see anything past due.  They are saying everything is up to date. 

[austinguy907]

Guessing this is an auto loan you paid off?

When you $0 out a loan and it shows up as closed it does drop your score but, you'll recover with time.

[Anonymous]

I still owe $1200 dollars.  And it it just not a closed account it is showing up as a 30 day missed payment which is what hurt my score.  GM just called me and told me they didn't do it...  So, got to wait for Equifax to fix it I guess..

[austinguy907]

From what you copy/pasted into the posting doesn't show any lates.  Can you grab a screen shot of it?  If you're seeing a late and GM won't do anything then you're giong to have to dispute it with the CRA to get it fixed.  From the posting it just looked like a paid off / closed account.

[Anonymous]

That's the thing no late is showing...  But when I check my credit report it shows this -

What's hurting your Fico score. You have one or more accounts showing missed payments or derogatory indicators.Number of your accounts with a missed payment or derogatory indicator
1 account

[austinguy907]

So, something in the past is being listed as the reason.  Sometimes they give you false things to think something is wrong.  I have scores in the 830's and reasons listed for holding things back list some real oddities as well.

Here's one from a TU monitoring:

I have 10 accounts.... therefore not enough accounts is a bogus entry

Mortgage balances too high??  Really?  How does this effect my revolving available utilization?

I have 1 inquiry listed on my report.... I know better than this item being listed since it's already aged over a year.

here's where you can improve.

	There are not enough premium bankcard accounts on your credit report. [TransUnion] A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report.
	Your mortgage account balances are too high in comparison with your credit limits. [TransUnion] Having credit available to you is a sign that you are able to manage your finances responsibly. Lenders like to see that consumers have a large amount of credit available to them, but not so much that they could spend more than they could afford to pay back. If you currently have multiple accounts open with high balances, try reducing your balances below 35 percent of your limits. If you do not have many open accounts, consider opening a new credit account or asking your creditors to increase your limits.
	There are too many inquiries on your credit report. [TransUnion] When lenders review your credit report for the purpose of an application, an inquiry is placed on the credit report they checked. A few inquiries a year is normal, but multiple inquiries within a short time frame may cause a temporary drop in your credit score. If you have many recent inquiries, lenders may assume that you are having financial problems. Avoid unnecessary inquiries by only applying for credit cards or loans that you are sure you want.

Discover shows this as a limiting factor:

1. LENGTH OF TIME REVOLVING ACCOUNTS HAVE BEEN ESTABLISHED

People who do not frequently open new accounts and have longer credit histories generally pose less risk to lenders. The age of your oldest revolving account and/or the average age of your revolving accounts is relatively low.

AMEX provides these reasons:

1) Length of time accounts have been established

People who do not frequently open new accounts and have longer credit histories generally pose less risk to lenders. In your case, the age of your oldest account and/or the average age of your accounts is relatively low.

2) Length of time revolving accounts have been established

People who do not frequently open new accounts and have longer credit histories generally pose less risk to lenders. In your case, the age of your oldest revolving account and/or the average age of your revolving accounts is relatively low.