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passerby08

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My credit score is dropping for no reason
Hi, My credit score seems to be reducing by 7pts a month. And I am not sure why..I have just started building credit (about 3 months) and I have one CC which is always current and there is nothing negative on my report. What can I do to stop this?.

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Try some of the tools on this site.

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This site has a lot of financial tools you can use to see what is going on or what needs to be done to improve your credit score.  The greatest benefit is you can see what could happen without suffering the nasty effects of finding out the hard way that it wasn't such a good idea.

I hope you check your credit scores annually, as we all should do.  If you haven't, go to annualcredit report.com and get copies of your credit reports from all 3 bureaus.  Look them over very carefully and file disputes on all WRONG information with the credit bureau reporting it./  They have to investigate and either verify oir delete the disputed information.

Also, with the credit card, try keeping your usage at or below 20% of the total credit limit and pay the "Total Amount Due" as shown on the credit card statement when the bill comes in.  If you are keeping track of ALL the charges you have made during the month and sending that in when the bill comes, please don't.  That reduces your "usage" and reduces your credit score.  You only end up paying interest on a credit card if you leave part of the total amount shown on the bill unpaid until the next month.

You may want to consider adding another credit account to your file, too, like another credit card.  Gradually increase your amount of available credit to increase your credit score.

Hope this helps.

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passerby08

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Thanks for that tip. I usually ignore the "Total Amount due" and just pay off whatever total charges I have incurred-that's interesting. Yes I will be looking into opening another CC and possibly an auto loan as well. Hopefully that should skyrocket my score being that I hava a very young and innocent history. :-)

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Just don't overdo it, okay?

Be careful to not get in over your head which, give that you want to pay everything in full every month, isn't too likely to happen.

Also (and this isn't a credit issue) it would be very wise to build up a savings account equivalent to about 6 months living expenses "just in case."  The economy is not so good, job loss can come out of nowhere and disasters strike.  Having a savings account gives liquid assets when you're in those situations.

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