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StacyDCM

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My credit was fair & improving up through May,in which I got a motorcycle loan.Now it's down 40 pts!
Nothing else has changed other than I applied for 2 Motorcyle loans in May. One through my local bank which was denied due to the year of the bike and then One approved through Harley Davidson. Why would that drop 30-40 pts!!! I don't understand.

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Worried...

It took me months to build my credit back up to fair 656!  I even had an incorrect item that I disputed on my Trans Union last month I found.  

Any advise on how this could have happended?  And how long it will take to get back to where it was. How can it drop nearly 40 pts just because I took out a loan for $8000.00!!!!

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You added more debt to your credit profile, that is the main reason that your score took a hit. You also opened a new account which reduced the average of your accounts and a small hit for the inquiries as well. Once you pay down the loan your credit score will rebound even higher than before. The good news is that you can speed up the process by getting more than the minimum knocked off the loan every month. I also want you to know if you are not aware that when you pay off and close loans your score will drop.

Opening loans or Closing loans= score decrease  Carrying an open loan with a large balance to loan amount=lower score  Carrying an open loan with a small balance compared to the loan amount= the best scenario for your scores.

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Oh and by the way, have fun on that Harley and be very careful, danger is everywhere when your on a bike.

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