Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
Cowpoke13

3 Contributions
0 People Helped
why has my credit score taken such a high hit
Dear Credit Karma,
I just received an e mail from you saying that my credit score had ton down. I always pay my bills early, I had a 24 month interest free loan from Neb.Furn Mart, and had it payed 20 months early, I have also had an 18 month no intrest loan from Lowe's and paid them each off 6 to 8 months early, I have been working since I was 13 years old and have tried to keep my credit score as high as I can. There were only 2 reports that I saw in the e-mail you sent me. One was from Quicken Loans which stated it as a failed loan, That was not the case, My house was under reconstruction and wasn't ready to have a home inspector come out to look at my house se we ended the loan there, The second one was from Nebraska Furn. Mart whack I paid off 20 months early, I owed NFM 1.00 which they just forgave me for since I had paid them off in 4 months. I just need to know why my credit score took such a big hit. I be leave my scores were from 799 to over 800 now they are 786. What did I do wrong to take such a big credit score hit. I pay all my bills early, If I get a bill on thursday night by the next day the bill is paid through my On Line Bank Bill pay. So Im never late on any of my bills. Can you please help me restore my credit score?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
3051 Contributions
2885 People Helped

Paying your bills early does not help your credit score.  I know it sounds backwards, but not having any balances to carry over on any of your loans/cards hurts a bit.  Any time you close an account/loan/card it also hurts.  Best scenario is to keep a balance of 1-3% of the credit limit on any cards and loans you have.  That will drive your credit score up.  However, 786 is really good, so having anything higher isn't going to make much difference to your potential lenders.  Don't chase a high score just for the sake of having a high score.  Once you reach your level, it really doesn't make a difference.  I have a 778 score, all 5 of my credit cards are low or zero interest and no annual fees.  All my current balances are with zero interest rates, because they are always sending me blank checks for zero interest for 18 months.  How can I get anything better than that?

3 Contributions
0 People Helped

But why such a big hit,

I pay early, thats not the problem, I would do it anyway because thats how

I'v always paid my bills. I dont pay it all off the first month but string it along

 for a few months. I start with 1/2 of what I owe, then pay half of the balance

then pay the last half. Im just questioning why such a big hit.

rlkropp@gmail.com         913-370-6779

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.