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Question By
archaeous

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1 Person Helped
Vantage score sudden drop
I noticed a number of people reporting sudden drops but usually when in conjunction with paying off loans or something similar.

My score has dropped 100 pts over the past 2 months with no changes to any of my accounts.
My balance has remained below 3%. No new accounts, no paid off accounts (in fact my average age just hit 8 years for the first time)

No delinquencies, no inquiries... nothing. I am not sure what could possibly cause this. Since I am aware of the common things that seem "good" but can actually drop score like paying off a loan, consolidation, etc.... This has me quite worried actually

I asked this question previously when the drop was less but it just keeps plummeting.. There is nothing new at all no new accounts no closed accounts, no difference in CC balance, no inquiries. I am getting really frustrated that no one anywhere can provide any guidance at all. I want to buy a house soon and this has crippled that possibility.

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Stagnation...?

This is only a theory on my part.  But I have spoken with several older people that have great credit history but low scores.  Seems that when you haven't had any new activity reported on your credit report, that you pay your bills, don't live beyond your means and pay little in interest, you become less attractive to creditors.  Their algerithums look for those most likely to pay interest for their credit.  So When you become stagnant and no longer persue new lines of credit and do all the right things your score drops.  It's Crazy.  

I suggest that you need to revitialize your credit if you want to get your score headed in the right direction.  Retire, But don't close your oldest credit card or two. Replace them with a couple new credit cards.  There are some great 0% cards out there right now. Then go on about your life as you have.

I did this with my father when he needed a new car after he retired.  His credit profile hadn't changed in years.  There were old accounts that had been closed for lack of use. He had 2 open credit cards both of which were over 30 years old.  His score was a low 600. He was planning a reunion trip with some of his WWII buddies and I convinced him to open a new 0% card to pay for it interest free.  He applied, was approved and his score raced up to 750.  In less than 6 months he was able to qualify for a 0% Auto loan as well     

Just a theory

Reply by
archaeous

3 Contributions
1 Person Helped

Interesting, I can try something like that I do really only have 2 cards I use as my oldest cards have high interest rates that they won't change.  I do travel so maybe a airline / travel rewards card might be worthwhile.   

And I see the plausibility in this.  I think its been 3 or 4 years since there has been any activity at all.  I have a work credit card but I am not sure how or if t that got reported.  It i in my name but doesn't show up when I look at credit reports

Thanks

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