TransUnion Score dropped 1 point???

[Anonymous]

Hello everyone, I am beginning to believe that these companies are playing with our lives (literally). I have been working exceptionally hard to clear my credit and finally I was able to get everything off as of Jan 1st 2015. The day that the last item dropped my score dropped, the item was a tax lien that i paid back in 2010 but never paid the courthouse until Dec 2014.

Why would my score drop? I have now have a 684. I am currently in the process of preparing to build a home and I need to get my score above 700 before spring, I have ZERO bad credit but my credit card utilization is 44% from my move back from Europe in 2013.

I don't get it, I really thought that when that lien was to be removed that my score would really jump. I have 2 hard inquires that are due to drop in March 2015 does anyone have any idea if my score may increase when these drop and if so, how much?

Thank you.

[Anonymous]

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@Anonymous wrote:

Hello everyone, I am beginning to believe that these companies are playing with our lives (literally). I have been working exceptionally hard to clear my credit and finally I was able to get everything off as of Jan 1st 2015. The day that the last item dropped my score dropped, the item was a tax lien that i paid back in 2010 but never paid the courthouse until Dec 2014.

Why would my score drop? I have now have a 684. I am currently in the process of preparing to build a home and I need to get my score above 700 before spring, I have ZERO bad credit but my credit card utilization is 44% from my move back from Europe in 2013.

I don't get it, I really thought that when that lien was to be removed that my score would really jump. I have 2 hard inquires that are due to drop in March 2015 does anyone have any idea if my score may increase when these drop and if so, how much?

Thank you.

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Where are you getting your score from?  Mortgage companies mostly use the FICO 04 model and the only way you can get that score is from Equifax Score Power and it costs $19.95.  However, you can't stress yourself over a 1 point drop.  That's insignificant and credit scores rise and fall periodically for reasons difficult to determine.  The lien being removed will help your score but it's relatively early to have affected it yet and there is no way to know how much it will.  It's impossible to tell how much your scores will change when the two inquiries drop.  That's just one small part of your overall credit file.  Without knowing more about your credit file, I can tell you that your score is significantly lower than what it would be if your utilization was lower.  You need to bring that down to under 10% and lower if possible.  Utilization is a huge factor in determining credit scores.  If your utilization was say 5% your scores would probably rise well above 700.  Work on that and that will dramatically help your chances for the mortgage.  Mortgage companies, regardless of credit score, will not want to see that kind of debt.

[EW800]

I agree with Irish.  I know the feeling very well in regard to working very hard and getting frustrated with even a single point drop, but try not to stress about it.  That has happened to me a few times as well through my rebuilding, and still does.  One point is not a big deal and you will very likely get it and more back with additional "good behavior".  If I am not mistaken, there are literally a couple of hundred things that the FICO God's supposedly look at in scoring, through many different buckets, therefore it does not take much more than the wind blowing a certain direction to generate a score change that has you scratching your head.  

I also agree in regard to the 44% utilization.  While not disastrous like being max'd out it, that is likely costing you a very noticeable amount of points.  Get that number below 10% and I bet you will be rewarded very handsomely!  

Best wishes!  

[NRB525]

OP, which credit cards do you have, how long have they been open, what are the limits, and where are the balances ($ amounts) that lead to the 44% Utilization?

[Anonymous]

thank you to everyone that offered support and information. I REALLY appreciated all the comments, I am a disabled Veteran 100% SC and currently living in a FEMA trailer. I am trying to get everything organized to begin building my home in the spring of 2015.

The reason my cards are high is that I used them to move myself back from Germany in 2013, my wife passed away in 2011 in Wiesbaden and I saw no reason to stay abroad when I had a 26 Acre farm in S. Ohio.

The cards I have are a Platinum from my local bank, a Chase card and a Military Star card with ZERO balance. The platinum is at 2200 and the chase is at 1089(3500 and 2000 respectively). I have 2 bank loans and a truck payment as well. I am very blessed when it comes to money as the VA is taking very good care of me.

I just thought that my TransUnion score from CreditKarma would have increased to almost 700 when that lien was removed not be reduced. I can't find any reason as to why it went down and CreditKarma does NOT explain why either. Kind of a sorry thing to do personally, I believe that if they make changes they should tell you exactly what caused the change.

I know that my debt to income is a bit high, but even with all the bills i still have excess money. I guess it is because I am single and noodels are my friend(lol). I don't require much but my equipment seems to consume my extra money at times.

Not sure what else to say... except I will just have to get my credit card balances down to 0 in less than 6 months to see the increase.

Thanks to all of you!

[Anonymous]

Irish80, I am just getting the FREE CreditKarma score... I am just too cheap to pay for any service, sorry. I will read up on this FICO 04 scoring system and do my research. Thank you again... and yes I will try to just take this in stride and lower my debt to income via the cards.

buddha65281

[elim]

I had a negative account removed from my CR's and because it was VERY old my scores dropped.

just keep doing what you're doing and get your Utilization perfect and your scores will climb

best of luck!

[elim]

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@Anonymous wrote:

Irish80, I am just getting the FREE CreditKarma score... I am just too cheap to pay for any service, sorry. I will read up on this FICO 04 scoring system and do my research. Thank you again... and yes I will try to just take this in stride and lower my debt to income via the cards.

buddha65281

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  Dont go by Credit Karma... the sores are fake.

edit: updated chart to include december

[mitchblue]

Why worry about a point..

[Anonymous]

Hey Mitch,

You made me laugh but my very first thougth was "why pick up a penny". I guess I see it as a point earned or "money in the bank". I don't know, I just know that it is what all the financial institutions use to "JUDGE" us. It is no longer the times when you had a good friend at the local bank and could say "Hey, Joe... loan me 20k" and it happened because you were high school buds or fishing buddies.

I suppose I will be forced (inclined) to find out how Elim got their FICO scores... it is most likely a montly service and again, I just don't want to subscribe to that at the moment.

But thank you for your input...