@Anonymous wrote:Just checked my Fico score today through Citi online banking and found out that my score dropped 40 points, from 780 to 740, sometime between late April to late May. I immiediately ordered free credit report from Equifax but can not find any activities that may result in such drops. I was never late on any of my credit card bills and do not current have any loans. My credit card utilization rate is generally below 10%. Have not apply for any new cards or loans for a fews years now.
I suspect it maybe relating to one of those:
- I paid off my mortgage last year, but it was almost 12 months ago. I can not remember if my credit score dropped then.
- I have a credit card that I have not use for over a year.
- I have a credit card stolen and was immeidately closed, I was issued a new card, but kept my account, it was also almost over a year now.
- I only use one credit card (rather sparingly too) right now and stick with cash most of the times, so my credit score have not changed for more than 7 month now, which is why the sudden dropped shocked me.
On the Citi Fico Score Page, it states the following reason as the main factor that affect my credit score, but I am not sure what do those mean exactly and if they can result in a suddent 40 points drop:
No recent non-mortgage balance information
FICO® Scores consider whether a person’s credit report shows open or recently reported accounts, other than a mortgage. Your score was impacted by the amount or recency of information on these accounts appearing on your credit report
Lack of recent installment loan information
FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person’s credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans.
The only alaming thing I found on the credit report was a Hard Inquiry done by T-Mobile just yesterday, which I am certain that I did not make, which is also the only hard inquiry on my record. Shoud I be concerned with this?
Any ideas why my score dropped? Any advises and suggestiosn are appreciated.
Thank you.
It sounds like you're being penalized for not having an open installment loan.
You should be somewhat concerned about the T-Mobile inquiry. I would look into contacting T-Mobile to make sure there are no new accounts open under your social. I would also look into locking your credit report for a few months, especially since it doesn't seem like you'll be applying for anything in the coming months.
No installment loan and very little use of your credit is the reason for the drop. Credit is one of those things, if you don't use it, you lose it.
@19eighty5 wrote:You should be somewhat concerned about the T-Mobile inquiry. I would look into contacting T-Mobile to make sure there are no new accounts open under your social. I would also look into locking your credit report for a few months, especially since it doesn't seem like you'll be applying for anything in the coming months.
I agree the T-Mobile inquiry is definitely alarming.
I'm also going to suggest you pull your NCTUE report right away and perhaps proactively place a security freeze on that as well. Especially since if all they did was open a phone line under your name, then that would never show up on your credit reports (until it gets sent to collections).
