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DCLITES

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WHY IS MY CREDIT RATING DECREASING
I CONITINUALLY PAY MY PAYMENTS ON TIME BY MY CREDIT RATING KEEPS DROPPING WHY? I HOUGHT IF U MADE YOU PAYMENTS ON TIME, YOUR CREDIT WOULD GET BETTER NOT WORSE

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You are misunderstanding!

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Most people, including you, worry about their credit score, while they should, instead, worry about their credit report. When you apply for a loan, credit card for example, credit grantor will pull your credit report. A score will be calculated based on that credit report. That score can be from the bureau where the report was pulled or credit grantor can apply their own mysterical function to come up with a score. Only when your score passes a certain high threshold level (normally very high), then that's it, you get approved right away. More often than not, your application will be pending, until a real credit analyst looks at your credit report and makes a decision. Having said that, if you keep paying on time (in full or even more than in full is best), your credit report for sure looks better this month than it looked last month, no matter how your credit score changes. Now I will explain why you have such change. This is because your balance will vary each month, that leads to a varying utilisation percentage, a major component in calculating credit score. So even every other aspects of your credit report are the same, you will most likely have a new score every month!

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