Credit Score

Discussion in 'Vintage Topic Archive (Sept - 2009)' started by 4095fanatic, Apr 12, 2008.

  1. Just checked my credit scores... it dropped from 777 (Excellent) to 707 (Good). :(. Here's why it dropped, and here's some things ya'll should watch out for as they'd drop your score as well:

    # On average, many of your accounts have been open less than 3 years. Having long term credit accounts that you consistently pay on time is an important indicator of stability to lenders. Over time, your score should improve as your credit history ages.

    Opened up two new ones and closed the two "old" ones. This will get better with time.

    # Your overall balances are close to your overall credit limits, which may be lowering your score. Having high credit limits shows lenders that you are responsible with your credit, but you should try to increase the cushion between your total debt and your limits. Paying down your balances may be viewed favorably by lenders and may help improve your credit score.

    Consolidated several accounts with a cushion into two with no cushion left to reduce payments. Saves me money, but lowered the score.

    # At least one or more of your accounts has a balance that is close to your credit limit, which may be lowering your score. When your balance is high, this can indicate to lenders that you are likely to overextend yourself. Try to increase the cushion between your credit balance and your credit limit to help improve your credit score.

    See above.
  2. Carbin8r

    Carbin8r Member

    Credit scores are such a crock. They also use several (5, I think) formulas and you can move from one to the other for numerous reasons which can cause an instant drop or increase in your score.

    Closing old accounts and having too high a percentage of available credit were two items that impact negatively which I became of years ago.

    Taking advantage of new offers of low rates and transfering balances is not necessarily bad. Just leave the old accounts open and let them become inactive and they will close eventually but stay on your report. Your oldest account (or accounts) should be used periodically for small purchases just to keep them on you credit report.

    If you have zero debt, you are generally best off charging a modest item periodically and paying it off over several months to show continued payement consistency.

    Many of you may not be aware that a medical "credit score" is in the works which may be used by medical insurance companies the way FICO is used by credit companies.

    You should also be aware that ANYTHING you tell you physician ends up in a medical history file which your medical insurance company does have access to....such things can be taken out of context and used against you... :evil: