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Question By
boongsong01

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Credit score dropped 4 pts.
I'm really curious as to why my score by Trans Union dropped 4 pts. when I paid off my car. According to TU my account was closed which is normal. When I queried TU, here's what they said. Can anyone translate this into user-friendly language rather than legalese?
We are contacting you in reference to the issue you have brought to our attention via Social Media. We contacted you at the telephone number you provided; however, we were unable to reach you.



A score is a statistical tool used by some creditors to evaluate information associated with extending credit to a particular consumer. Risk is predicted by means of a scorecard, which calculates the numeric value, or score, for each credit applicant or account holder. The score is calculated as a result of data processing activities performed by TransUnion for a creditor after the credit report is assessed, based on statistical analysis. Please be advised there are hundreds of scoring models utilized today from financial institutions throughout the United States. Each scoring model is chosen by the financial institution based on criteria they specify in relation to their business needs. Once a financial institution request a report from a credit reporting agency, the score is then calculated and provided based on the information contained on your report at that moment. Credit information in your credit report, including the number of inquiries, outstanding balances, number of accounts, age of accounts, etc., is considered when calculating the score. Please be advised not every creditor reports to all three bureaus and this may also cause a difference in scores. Since all scores are based on the information contained in your credit report, confirming that the credit information on your report is accurate will ensure that the score is correct regardless of the model used. It appears that you are receiving your credit score through Credit Karma. We are unable to accept a dispute regarding your credit score; however, we can investigate the information on your credit report if you believe it is inaccurate or incomplete. “If you need more information regarding your Credit Karma product, please visit their website http://www.creditkarma.com”.

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Four points is minor stuff and just a 'burp' in the total.  Don't sweat that because such things will happen periodically for no clear reason.  Minor stuff.

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