Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
HannahPants

0 Contributions
0 People Helped
Credit score keeps going down. Why?
I have 4 open accounts. 2 credit cards (using LESS than 30% of max limit), one car loan, and an overdraft protection account. Only one missed payment ever -- I was deployed and the internet wouldn't connect long enough to schedule a payment. I make payments regularly and on time. My score was 720, then dipped down to 690 and now it's at 646. I don't understand what I'm doing wrong. The only negative things in my report are my credit history age (less than 2 years) and the low amount of accounts I have open. How do I get it higher?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
65 Contributions
153 People Helped

With very short credit history, low # of accounts, and low limit, any % you use of your max limit will lower your score.  Just pay it off entirely each statement?

To get it higher, you'd either a) call one of the existing cards and ask them to raise your limit, or b) open a new account at a decent bank to hopefully get a limit of 5k+.  I know option B results in a hard inquiry, unsure about option A, it might differ depending on circumstances, I guess you could ask them.

Anyway, any hard inquiry would (probably) lower your credit score short-term, but it should start to improve after 6 months or so.  If you're using something like $500 on $2000 max limit and get a new $5000 line of credit, then it'd go up immediately, despite the hard inquiry.

Top Contributor
1884 Contributions
3672 People Helped

I believe that the issue

is most lilkely the late payment combined with your short history. It has a bigger impact.

Sounds like your doing the right things.  Keep making those payments on time and utilization low and your score should bounce back soon enough. I wouldn't try opening new accounts until you get your score back up over 650. That will just take time. 

The reality is that score fluctuate all the time.  I saw mine go from 730 in July to 600 in August and is back up to 700 today.  I had a lot of debt in August paying for a wedding. As the debt is paid down, my score goes back up.   Just the way it is.

Good luck

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.