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Question By
cowdenck

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Credit Score Declining?
I cannot understand by looking at my information on the site why my credit score has gone down by 8 points in the last 2 months.

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Top Contributor
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I would look for the following in the individual categories CK has and the data provided:

Utilization: Has you utilization increased over the last 2 months?

Avg Age of Credit Lines: This should normally creep up month to month unless you had a loan fall off or a closed revolving account fall off. Remember, even accounts in good standing only stay on your reports for 7 years once they are closed.

Total Accounts: If your total accounts has decreased, it is a double-edged sword. Not only does having fewer open accounts in good standing impact your score, if an older account fell off, it would impact Avg Age of Credit Lines as well.

Hard Credit Inquiries: Obviously, an increase in the number of requests for credit could impact your score.

8 points, in the grand scheme of things, is not huge but I understand you wanting to know what happened. Aside from the above, check your alerts to see if you had any outstanding accounts go into collections. 

Most importantly, don't get discouraged. Much like the old adage, "You have to spend money to make money", "You have to take some small short-term hits on your credit score to get a long-term payoff". Credit Scores are complicated algorithms and you will have to take the occasional hit to open new accounts before they can become established accounts improving you score.

Good Luck,

Dan

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