My credit score tanked this year! - PeachParts Mercedes-Benz Forum

Hatterasguy · #1 01-01-2009, 05:02 PM

I have been pulling my credit report once a year for the past two years just to keep an eye on it, its free so why not. Anyway the last two years I used Experian and it was 738 and 711. Not the best, but not bad. Well I had issues with FreeCreditReport.com not closing my account as requested and had to dispute the charge with Visa. So this year I used Creditreport.com which uses Transunion. My score dropped to 632! WTF!

I have 5 student loan accounts, and 2 credit cards. I will admit this year I got a bit out of hand with the CC's and ran them up a bit. I threw one card out and am just paying down the balance, but I still owe $1,300 on it with a $1,500 limit. I plan on paying that card off and just leaving the account open because I am told thats good. My other CC has a very low limit, and I only owe a few hundred on it. I plan on paying it off and just using it for emergancy's from now on. I'm learning from my uncle, I'm going to cash and am getting a full sized check book for my business.

I have no late payments, not one, everything is currant and in good standing.

Do you think starting to pay off those student loans would help? They are all small balances, ie one is $1700. I'm thinking about starting to pay those off this year even though they are defered and I won't have to start paying on them until next year.

Any advice?

I want my score to be above 700 again!

iwrock · #2 01-01-2009, 05:17 PM

Ohhh, if Freecreditreport.com dings my credit for closing the account and making them refund me, I am gonna be pissed.

I am going to wait till June to look at my credit report though.

MTUpower · #3 01-01-2009, 05:55 PM

rent someone else's....

Matt L · #4 01-01-2009, 06:26 PM

It may be your total debt on the CCs that's doing it, unless you've opened some accounts this year. Your score can go down simply because it is being checked.

TheDon · #5 01-01-2009, 06:33 PM

i have no credit cards

Matt L · #6 01-01-2009, 06:39 PM

I have several credit cards, and haven't paid any of them any finance charges or other administrative fees in about five years.

Jorn · #7 01-01-2009, 06:42 PM

"I still owe $1,300 on it with a $1,500 limit" is the reason your credit score is down. Reduce your balances on credit cards to 75 percent or less of your available, 25 percent is preferable.

Hatterasguy · #8 01-01-2009, 07:19 PM

I figured it was the CC's.

I havn't opened any new accounts this year.

Medmech · #9 01-01-2009, 07:37 PM

FICO '08 is a whole new model even if you make your credit card minimum payments your score will slide down to the bottom if credit cards have a high balance---yes even if you make the payment on time. Google it.

The new model is going to get the credit repositories and credit card companies in trouble because they are colluding on building a credit model, when the mortgage fiasco is forgotten people will realize they have been slammed with 29.99% interest rates for no reason.

Kuan · #10 01-01-2009, 07:47 PM

What's a "high" balance? My dang credit card canb buy an MB, I don't know why, but about one or twice a year they increase our credit even though we never asked them and I'm sure we don't even have the means to pay it off.

Medmech · #11 01-01-2009, 09:40 PM

Quote:

Originally Posted by Kuan

What's a "high" balance? My dang credit card canb buy an MB, I don't know why, but about one or twice a year they increase our credit even though we never asked them and I'm sure we don't even have the means to pay it off.

Its from the percentage of available credit, like Jorn said 25% seems to be the number that they use to start subtracting points.

pwogaman · #12 01-01-2009, 11:36 PM

When you threw a card out you reduced your available credit limit. They measure your debt to available credit ratio and closing an account in good standing is moving the ball in the wrong direction. If you kept the card open and only used it once a year for lunch at Subway and immediately paid it off your score would have been better. The score likes it when you have credit available, but don't use it.

Skid Row Joe · #13 01-02-2009, 12:55 AM

Quote:

Originally Posted by Hatterasguy

Any advice?

I want my score to be above 700 again!

Stop borrowing money, and it'll go up.

My credit score was 801 and I had never borrowed a dime in my life. I was 48 years old when I checked it. That was years ago.
Have no idea what it is now. Don't care what it is......I don't borrow money. I only loan money these days for return income & interest.

Hatterasguy · #14 01-02-2009, 08:26 AM

Yeah my mistake was probably closing that CC balance, and that store CC. But screw it I don't want a ton of them.

I'm just going to pay off my currant two and keep the balances at $0 from now on. I'll just charge lunch once or twice a year to keep the accounts open.

Medmech · #15 01-02-2009, 08:44 AM

Quote:

Originally Posted by Skid Row Joe

Stop borrowing money, and it'll go up.

My credit score was 801 and I had never borrowed a dime in my life. I was 48 years old when I checked it. That was years ago.
Have no idea what it is now. Don't care what it is......I don't borrow money. I only loan money these days for return income & interest.

If you have never borrowed it would return "insufficient credit to score".