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Question By
dirtyredgreer64

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Why did I lose 50pts on my Credit Rating?
Hi
I would like to know why I lost 50pts on my Credit Rating? How can & will my points go back up?
Also, the Discover Walmart Credit Card on my report in the amount of $635.00 has been paid off. I took Credit Karma's advice and I got rid of my GM Card & My Walmart Discover cards and I now only have a Citi Simplicity Card (your advice) and they paid off the above 2 credit card companies and I now only have the Citi Simplicity Card.
Please let me know how to increase my Credit rating to get it back to Excellent!
Thanks,
Darlene B. Rollin

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If you cancelled the GM and Walmart cards, you reduced the amount of available credit the credit limits on each of those cards) and that can cause a drop in credit score.  If you had consolidated the two cards (getting the Citi Simplicity to pay both cards off so you had a single card payment) and kept the other two cards, your score would likely have gone up. 

How much available credit you have is very important to a higher credit score.  For more information on how credit works, please read the articles (see left side of this page under Resources) provided on this site because Credit Karma's purpose is teaching people about credit so they can have credit work for them.

BTW- it is NOT Credit Karma that recommends a card, but the sponsors of the site who are the credit card companies who pay the fees for this site to be on the Internet and is free to us.  I've passed up the "recommended" cards here becaus eI can gett better deals through my credit union.  My choice.

Reply by
dirtyredgreer64

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Thanks so much for responding to my question. I still have the other 2 cards open, but I consolidated the 2 cards for the 1 Citi Simplicity Card to give me more time (18 months) to pay off the balances of the two cards. I will read the information under Resources to learn more about how this site works and etc., because I thought that the recommendations were Credit Karma's choices. I will read the article under Resources so that I can learn more about how this site works! Thanks again!

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did you close those cards? If you did, that's what did it. fico scores look at the credit that you have available to your vs the amount you are using. when you cancel those cards, that credit is no longer available to you, and it also shortens the lenth of your credit history. it took me years to pay off my student loans (all 4 of them). The day I paid them off, my fico score dropped 25 points because my credit history had decreased. Crazy system.

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Reply by
zevus

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Paid off installment loans (like a student loan) shouldn't fall off the report for 10 years.

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