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Tennesseesweetie

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My credit score has dropped 30 points in the past few months. How can I bring it back up?
I have an auto loan which is always paid on time and sometimes before it's due. I also have 4 store credit cards that have never been in default, and are always paid in full on or before the due date. How has my score dropped 30 points in just a few months? Do I need to lower my credit limit on the cards if I'm not using them to the full amounts? HELP! I want my score back where it was!

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Scores Fluctuate all the time.

Helpful to 20 out of 20 people

Lowering credit limits won't help, You want to raise them. 

A lot of your score is based on "Debt to income" Ratio as well as available credit. So your goal is raise the available credit while keeping your utilization low. 

Sometimes your score will dropp just because you pay all your bills off every month, That tells lenders that you don't really need credit because you could be paying cash for everything.  Oweing money on a card every once in awhile will help your score in the long run.  Even if you pay off all but a little bit of your balance due each month.

Don't get me wrong, Paying off debt is always a good thing, But the Algirithums that creditors use don't understand that. They only see that you don't carry balances.  Unless you are applying for new credit you don't need to worry about your score fluctuating. It's only when you are planning to apply for new credit that it's actually an issue.  When you know that you want to apply for new credit you can force your score up by paying close attention to how you're paying your bills.

Force your score up by paying off 90% of your balances and carring a portion of your balance forward, do this for a couple of months before appling and you can see your score climb.  Creditors also like to see you using the cards. For example if your card has a limit of $1000.  Charge it up to $600 in one month, Pay off $400 the first month, then charge another $300. the next month, Then pay another $400. that should leave a ballance of $100. + a small amount of interest.  Pay that off in the third month.  Creditors love seeing big payments and the card coming down to 0 again. This little trick can bring your score up 75 points in 3 months.  IT has worked for me, I hope it will work for you.

Good Luck

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