My Credit Score Dropped Again!

This credit score thing is really starting to get on my nerves.  Back in October I checked my score and it was at 751.

Now it’s at 731. What in the world is happening? Why has my credit rating dropped?  To my knowledge, I have done nothing to make this happen. I haven’t opened any new credit card accounts, I haven’t applied for any credit at all. I haven’t missed making any payments, and I’m paying more than the minimums.

Let me confess right now that I was able to take a closer look into what is going on because I never canceled my monthly subscription to Equifax.

Today I received a notice by email that my subscription was expiring, and that the credit card on file had also expired.  The email said they would give me one more free complimentary month, and that I must log in and give them a new credit card right away.

I’m not doing that.

But I did sign in just to see my credit scare – I mean score.

I was really annoyed to see it has dropped!

So I started looking around to figure out what has been going on.

On November 4th, it actually went up from 751 to 760.  Here is why that happened. Apparently the last time I opened an account was over a year ago.

Credit Score 760

Okay, so the next change came just two weeks later on November 18th. It doesn’t look like I did anything at all and my score dropped 16 points. Suddenly my proportion of balances to credit limits are too high.

Credit Score 744

The next change came on February 3. This time an increase in the score. Now the balance to credit  limit is no longer considered a negative.

Credit Score 751

Okay, the next change occurred on February 17th and dropped by 20 points:

Credit Score 731

Here’s why. This was a business purchase that I made using my personal credit card since I didn’t have one of business debit card with me. This purchase actually occurred on January 27th:

Next change was on March 17th, when it dropped yet again with no direct reason – just the random too many bank/revolving accounts with balances being reported. All right, sue me why don’t you.

Credit Score 723

Later on the same day, they reported that my account had decreased by $508. DECREASED, mind you, and this payment actually happened on February 15th. It was the payment for the business purchase.

Balance Has Dropped

Two days later, another DECREASE, this time by $292.

Credit Score

On April 11th, an increase from 723 to 731.

Credit Score

And that’s where I stand. At 731.

In the meantime, we’ve made over $1000 in payments. I have this account for 30 more days, I will continue to check it out and see if my score goes up.

I thought you all would like to see this insight into how these things work.

One more thing. This Understanding Your Score screenshot shows on the green side that “recent use” of my credit card has actually helped my credit score.  Uh yeah. I had to use the credit card for some auto repairs and those charges have already been paid.  That just doesn’t make a lick of sense. Earlier I showed you how my credit score dropped because I charged just over $400 and paid it off in less than 3 weeks.

Am I supposed to “use” my credit card and then run home and pay it in full once I get home?

Understanding Your Score

This is just depressing.

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14 comments to My Credit Score Dropped Again!

  • Hey Mrs A

    This is a great post. Thanks for all the pics…I think it just goes to show you cannot be too hung up over your credit score! I moves for reasons that may or “may not” reflect on any change in your credit worthiness

    [Reply]

    Mrs. Accountability Reply:

    Hi Mr. Credit Card – I’m so frustrated because we were really wanting to refinance our home since our mortgage is over 7%, iirc, it’s 7.375%. Our credit union said if my credit score is over 740 the closing costs will be $800 less. I guess I’m going to just stop caring if we have to pay $800 more. That’s the biggest annoyance of all.

    [Reply]

  • Melissa

    If it makes you feel better, my credit score was over an 800 when I bought my house a year and a half ago. According to Credit Karma (which I take with a grain of salt), my score has dropped to 706 (as of updating a few minutes ago.) It apparently took a nose dive from last month because my credit card utilization increased from 10% to (gasp) 12%. I never carry a balance, but generally charge most expenses to my credit card. Also, my long time credit card account was closed by BOA because it wasn’t used very often.

    The other kicker is that I have too many hard inquiries on my account because after five months of trying to refinance my mortgage, I gave my bank the middle finger and moved to a more local bank that closed the refinance within a month.

    So despite a debt-to-income ratio of 20%, a credit card utilization of 12%, never carried a credit card balance and interest bearing credit accounts of only a mortgage, I’m tossed into a credit score category with those people who have missed payments galore and carry balances up the wazoo.

    It’s a good thing I swore I’d never finance another house/car/large purchase ever again. FICO can take my credit score and shove it and my credit cards will continue to receive their payment well within the grace period and lose my business if they change their terms to make me pay interest.

    Thanks for allowing me a place to rant. I feel your frustration.

    [Reply]

    Mrs. Accountability Reply:

    Hi Melissa, thank you for sharing your story! My credit limit is $85,000 and I have $22,150 in credit card debt. Actually they are behind because at my last calculation, my credit card debt is at $20,906. So my ratio of revolving balances to credit limit is 26%. My debt to credit ratio on the mortgage is 91%. This must be why my credit score is in the pooper. Thank you again, I wish I wasn’t in a position to need my credit score to be higher than it is now. BTW, I did check at Credit Karma, and I clicked on the update button and both my husband’s and my estimated credit score remained steady with no change since October. Not according to Equifax!

    [Reply]

  • Hey Melissa

    Way to go. I already have a mortgage and they cannot change the rate!(unlike credit cards). I do not carry a cc balance. Hence a FICO score now is irrelevant to me as well! Well, unless I want to apply for credit card for the bonus miles!

    [Reply]

    Mrs. Accountability Reply:

    Mr. CC: I sure wish we were in this position already!!

    [Reply]

  • Here in France, your credit score means nothing whatsoever, in fact, it does not exist! But I think that my credit score in the US might be dropping–perhaps due to inactivity. I’ve had 1 credit card fire me due to no use and I’ve had another one drop my credit twice–so now my limit is at $10,000. All this because I don’t use my card.

    I’m kind of glad I don’t have to worry about my credit score because I’m sure having your line of credit reduced like ours was and being fired by a credit card is not particularly good.

    [Reply]

    Mrs. Accountability Reply:

    Simple in France: That would be a relief to not have to worry about a credit score. I’m glad you don’t have to worry about it any longer! And that sucks when they fire you! I have had that happen and it’s always like a kick in the pants.

    [Reply]

  • I can see your frustration! I’m trying to improve mine and would be quite upset if I had seen this, too. However, I think it’s okay if scores fluctuate a few points here and there. There are so many factors effecting them (remember, it’s a computer program adjusting the score based on a number of variables). I think if you just keep paying off your credit card debt, and using your cards lightly (I learned this one a few months ago – use it or lose it!), your score will continually climb.

    [Reply]

    Mrs. Accountability Reply:

    @Little House, I thought about you when I was making this post! I wouldn’t mind a few points here or there, but I would like to stay over 740. That’s the magic number to save $800 if we ever follow through with refinancing. What amount would you call “lightly”? $25 a month? I was thinking about using one my credit cards to buy gasoline, but that can range anywhere from $200 to $400 month. That’s obviously TOO MUCH. Thanks for your input!

    [Reply]

  • I personally don’t worry about credit scores because I plan on being debt free with a big emergency fund and to never borrow money again ;)

    [Reply]

  • [...] she describes what sounds like a big lot with a magnificent garden. Of late, she’s been ruminating about her credit score, whose mysterious decline led to some interesting discoveries about how those things are [...]

  • [...] is Important to Me By Mrs. Accountability on June 2nd, 2010 Back in August 2009 I talked about why my credit score is important to me – it’s because we would like to refinance our [...]

  • [...] an negative effect on my credit score that lasted for twelve months.  As we would like to keep the option open to refinance our home, I’m not willing to sacrifice points to open new [...]

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