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fireandrain12345

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Credit dropped by 39 points.....Why?
OK.....I'm at a loss at this one. I just had one derogatory mark (the only bad mark) on my credit fall off my credit and one more month of perfect payments yet somehow my score dropped by 39 points........ Any idea why? Do bad marks actually help your credit score if you only have one outstanding balance?

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Having a bad mark is definitely not better and it is great that the tax lien has aged off. There are so many factors that go into the scoring models, its sometimes anyones guess. Just keep doing what you are doing and those points will get added back in. I hope that helps better than someone just telling you to go read  and assuming you had not done so already when you were asking the community for an answer based on our experiences.

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fireandrain12345

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Thank you for the reply. I was really hoping my socre would go up after the lien came off and was disheartened to see it went down.

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We do not have access to your credit information so cannot make the determination as to what happened.  If you take the time to read the articles here you may learn enough to make the determination for yourself, and that would be to your benefit for now and the future.  Becoming credit smart always is.

Reply by
fireandrain12345

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Thank you for the reply. I have read articles and can not figure out why my score dropped. I only have one open item and have perfect payments on it. The only things that changed are that one bad mark ( a tax lien that was 7 years old and paid) came OFF my score and one more payment was added to my car loan (thereby reducing my balance and showing one more on time payment). It is counter intuitive that having a bad mark removed would drop your score. I have always believed that credit scores are essentially arbitrary and rigged in a way to make as much money for lenders as possible. The more I learn the more I believe that.

I guess my question is: If you have been responsible and not borrowed money is having a bad mark on your credit better than having nothing in your file.

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