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Question By
jjfeiera

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Why is my score dropping in 20 point chunks?!
Over the last two months, my score dropped from a solid 710ish to now about a 670ish. Nothing major has happened in two consecutive months for a mega -20 points drop . I leased a car but the loan on the trade-in was paid off and the lease is less than the loan, I've had a few inquiries for utilities as I am moving (maybe 3? Plus GM Financial for the lease).

What on Earth is happening that my score is falling to hell?

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Old Accounts Falling Off

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were there old accounts that dropped off your report thus lowering the number of accounts and length of credit history? 

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UPDATE

Also, the lease was in April, loan payoff came up in May, and the credit inquiries I mentioned all took place before the end of June (I think happen more in May). 

Reply by
jjfeiera

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Oh, and I did get a few credit line increases from creditors - I DID NOT authorize credit inquires for such and there were none, the creditor awarded the new credit line themselves. 

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Car loan payoff closed that account

When car loan paid off, that account eas closed. This could have an effect on age of your credit history. Then you acquired new debt for lease. The drop may be just temporary for a few months unrtil you hsve a few months of good payment history on new lease.

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Watch out for past collections

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Past collections are sold to other collection companies over time. Sometimes you will see a past collection removed from your credit report then 4 to 6 months later see it reappear under another collection agency who paid to take it over. That can drop your score significanty. Also credit inquires, even though low impact, can drop your score. A ton of factors go in to your score raising and dropping. Even credit utilization. The more accounts you have open and in current payment status the better. Or the amount of credit you have say if you have more than 11 open accts the better your score. It can be a multitude of things that caused your score to drop. Rule of thumb check your score, reports, and all of your accts on a weekly basis. Derogatory remarks and everything. 

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