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JPM70

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Why is my Credit Score Dropping?
I have been paying off debt and also getting rid of cards I do not use. Why has my credit score dropped so much in the last couple of months?

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When you say "getting rid of cards" do you mean you Canceled them? If so then you have done the damage already. Never Close Accounts.

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JPM70

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So in this case what would you suggest?

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credit score dropping

Getting rid of cards has two immediate impacts.

One is that it reduces the average age of your accounts.

The other is a potentially larger impact.  It spreads your total debt over fewer accts, thus raising your oveall utilization.

You said you are also paying off debt, as soon as this catches up to lower your utilization number, your score should start creeping back up. 

People here say never close old accts:  If you are rebuliding damaged credit, then many of us needed sub prime lender cards and need to eventually get rid of them.  Although this can give you a hit up front (with the longevity of accts), I say take your lumps up front and get on with it.

I rebuilt my credit and after a couple years had good cards, so I got rid of the sub prime cards.  One of them offered to drop their fees when I called to cancel it last year, so I kept the card.  This card had a limit of only like 1100 bucks.  One of the factors that doesnt get talked about much here is that having a high utilization on any one card (not just overall) is a flag.  So if you have a low limit card that you dont need, I say get rid of it.  Case in point, I got rid of that card a couple months ago and my score when up eight points.  This is what the simulator predicted and this is exactly what happened.  This kind of flys in the face of the overall utilization factoring.  It tells me that there is more going on under the hood than the basic five categories that get talked about and reported on CK.

Just my opinion, but it works for me.

Good Luck

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