Credit score 805 last week, 570 today...

[Sunset]

They said they tried to call several times, but I honestly get 10-15 spam calls a day, so I just don't answer numbers I don't recognize unless they're local, and even then, they're usually spam. However, there was no notification from the credit monitoring company.

It was set up over the phone, as the website left a bit to be desired...

They should have left a message, if no messages left, sounds more like a fib to me.

 

[JoeWras]

I noticed the same effect, so now when I buy two first class tickets to wherever (last time was Japan) and it adds $14k to my credit card balance, I'll force pay that $14k on my credit card the day it appears online (i.e. not "pending") which is typically a day or two later. Then, I don't take even a temporary FICO hit by having an unusually large balance that month.

Honest questions. Does a temporary hit matter? If you apply for a loan a few months later, do they look back?

I've seen this happen to me but just accept the 60 days or so of lower FICO. Is this a bad practice?

Of course, if I knew I was going to ask for credit during that window, I'd not let it float this way.

 

[Sunset]

My score is probably 0. The only time I borrowed money was in 1983 when I borrowed $500 even though I didnt need to.

Not counting credit cards, I haven't borrowed money.

My score is over 800

 

[Sunset]

Lowering the $100,000 available amount to you for credit cards would probably increase your credit score even though you maintain a zero monthly balance.

Opposite.

I lowered one CC from $27,000 to $7,000 as I only use that CC for groceries, and planned to get another CC, so wanted a high limit on the new one as would be for travel.

My credit score dropped about 20 points due to the decreased credit available now being only $80,000 across all cards. I owed about $800 across all cards. Paid off every statement.

My credit score popped up a few points a month later when approved for a new credit card with $30,000 limit on it.

I think having a lot of credit available helps the score, if a person pays it off regularly and uses all the cards a few times per year.

 

[Gumby]

Honest questions. Does a temporary hit matter? If you apply for a loan a few months later, do they look back?

I've seen this happen to me but just accept the 60 days or so of lower FICO. Is this a bad practice?

Of course, if I knew I was going to ask for credit during that window, I'd not let it float this way.

FICO scores are used for more than just loan decisions and rates. They can be used in setting insurance rates, decisions about whether you can rent an apartment, how much deposit you may need to put down for utility service and even during employment screening. You may not care about any of those things, so it may not affect you personally, but they do affect some people, maybe some whom you care about. So I advise everyone to be attentive to their credit score and the things that can affect it. Mine usually hovers around 825.

Opposite.

I lowered one CC from $27,000 to $7,000 as I only use that CC for groceries, and planned to get another CC, so wanted a high limit on the new one as would be for travel.

My credit score dropped about 20 points due to the decreased credit available now being only $80,000 across all cards. I owed about $800 across all cards. Paid off every statement.

My credit score popped up a few points a month later when approved for a new credit card with $30,000 limit on it.

I think having a lot of credit available helps the score, if a person pays it off regularly and uses all the cards a few times per year.

They look at percentage of credit utilization; lower is better. So if you drop the limit on one of your cards, for the same amount of debt your utilization rate goes up and your FICO score goes down.

 

[JoeWras]

FICO scores are used for more than just loan decisions and rates. They can be used in setting insurance rates, decisions about whether you can rent an apartment, how much deposit you may need to put down for utility service and even during employment screening. You may not care about any of those things, so it may not affect you personally, but they do affect some people, maybe some whom you care about. So I advise everyone to be attentive to their credit score and the things that can affect it. Mine usually hovers around 825.

Ah yes, insurance. I've seen inquiries on my record for this. Very, very good point.

 

[dirtbiker]

Credit score is now at 670. Up 100 points. Better, but still not what I'm accostomed to...

 

[Scuba]

FICO scores are used for more than just loan decisions and rates. They can be used in setting insurance rates, decisions about whether you can rent an apartment, how much deposit you may need to put down for utility service and even during employment screening. You may not care about any of those things, so it may not affect you personally, but they do affect some people, maybe some whom you care about. So I advise everyone to be attentive to their credit score and the things that can affect it. Mine usually hovers around 825.


They look at percentage of credit utilization; lower is better. So if you drop the limit on one of your cards, for the same amount of debt your utilization rate goes up and your FICO score goes down.

I was recently reminded of this when we closed our Chase Sapphire Preferred accounts. DH and I each had a separate card with Chase, which we initially got because we each got a 100K point bonus for opening the accounts and spending a certain amount within the first few months. We thought we’d use the points for travel. While we did use up the initial points granted, we quickly realized that we were not getting the value out of these cards. Each card had a $95 annual fee, and we found the cost of travel through Chase Ultimate Rewards to be higher than other sources. We had high limits on these cards, and when I cancelled them both, our credit score took a significant hit.

It’s slowly coming back up, and when I pay off our zero % cards this year, I expect it to go all the way back up to where it was before. It’s a tough balance, because I prefer to simplify life by using a minimum of cards, but the issuers are also getting more aggressive about cancelling accounts or dramatically lowering credit limits on cards that aren’t used much.

 

[dirtbiker]

Latest credit score update came this morning. Up to 701. Nelnet rejected my credit dispute, unsurprisingly. I guess I'll just put my nose to the grindstone, and get it back up over time. It has actually come back up more quickly than I thought it would. Though, I'm assuming the credit increases will come more slowly as it inches back up to 800+.

 

[SecretlyFI]

I will be cancelling one of my Chase cards soon, due to a 58% increase in the annual fee. In preparation, I went through this morning and requested credit limit increases on my other cards, so balance out the drop in credit limit utilization. It was very easy and 3 out of 4 cards provided instant approval, with the other one saying a response should be within 2 days. It will be interesting to watch what happens to my FICO score as these increased limits take effect and I cancel the other card. I will probably wait until after my car insurance policy renews next month, to cancel the one card.

 

[Koolau]

Latest credit score update came this morning. Up to 701. Nelnet rejected my credit dispute, unsurprisingly. I guess I'll just put my nose to the grindstone, and get it back up over time. It has actually come back up more quickly than I thought it would. Though, I'm assuming the credit increases will come more slowly as it inches back up to 800+.

So sorry you're still going through this. But sounds like you're doing pretty well and have a good plan.

 

[RetireBy90]

The OP being delinquent once for over 120 days is an event that was reported to the credit bureaus. As a single event in time, that will stay there for a while, and will adversely impact their credit score as long as it's there.

Being 120 days late is a pretty big deal in the eyes of the credit scoring algorithm. Lenders figure that someone might be 30/60/90 days late for a variety of reasons (illness, forgetfulness, out of the country, temporarily busy with life), but 120 days starts to look bad.


OP, you can't really dispute the delinquency with the credit bureaus because it sounds like you were in fact late on your payments.

You can put an explanatory note on your credit bureau, but the credit score algorithms won't read that note and a lot of credit issuance is automatic. You can hope that if you appeal a credit decision the lender will read the note.

Your score will heal over time as you provide more data points that you're paying your bills. I don't know how long, but I'd guess it'd be several years.

OP, while this is harsh truth, it is my advice this is what will happen. You will get past this but it will take time as noted. I've had my own experiences like this when I missed a bill among the junk mail or mail was lost being sent to me. I opt for paper bills and electronic notifications both when I can just to have as reminders.