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.
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.
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.
Okay, the next change occurred on February 17th and dropped by 20 points:
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.
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.
Two days later, another DECREASE, this time by $292.
On April 11th, an increase from 723 to 731.
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?
This is just depressing.