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
Cisco61

0 Contributions
0 People Helped
Why would my score drop 60 pts when only negative items came off my file? Confused

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-7 of 7Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
1 Contribution
6 People Helped
Most Helpful Response

Age of Oldest Account influences Score

Helpful to 6 out of 8 people

I think you have the same problem I have. Now that you've cleared out your file it has a shorter number of years in the credit history.

2 Contributions
3 People Helped

In the same boat :)

Helpful to 3 out of 5 people

While I was deployed my exhusband's daughter had a field day opening over 20 accounts over a period of years.  I have disputed these items and when they came off my Credit Karna my score dropped nearly 100 points.  The Credit Karma calculus doesn't exactly handle these situations well but they are good at reporting changes in a timely manner. I use myfico.com to get an my actual numbers.  It also seems my scores go back up quickly on CK after a hit like this.  The model CK uses doesn't necessarily work well for situations that are far beyond the range of normal activity.  Dropping 10 or in my case 20+ accounts isn't a normal thing and when those accounts are several years old, the aging of accounts is greatly affected.   The thing I like best about CK is they report an inquiry super fast.  To me that is very important to prevent fraud. 

Top Contributor
52 Contributions
509 People Helped

Helpful to 4 out of 7 people

Even if it was negative, was this your oldest account?  Start rebuilding your credit with new cards so that your average age of accounts (AAOA) will start to grow.  

1 Contribution
0 People Helped

more than likely its the Age of Account

I had an 848 credit score last month when I refinanced my mortgage. I then closed some old unused credit cards and my score dropped to 817.  I lost 31 points. I was told that I should have kept the older credit cards open, since at least one of them was one of my oldest credit accounts still open.  Now that it’s closed my age of credit doesn't appear to be as old as it did before.  Basically I lost 4 years in my age of credit which is why my score took such a huge hit. Luckily my score is still in the excellent range. 

I've been told to check the ages of credit cards that you have and make sure that the oldest card is kept active to avoid the possibility that the bank will close the account because it’s inactive.  The best strategy is to use that old credit card to pay some charge that you incur every month.  It doesn't have to be a huge charge, just enough to keep the account active.  To avoid the possibility of forgetting to pay the bill, or pay it on time, set it up to automatically pay the balance every month.  This will keep the account active and will keep your age of credit safe.  Remember, for a good credit score you have to owe money to somebody.  Paying off everything isn't the best way to handle your money, since it will hurt your score, which costs you money when you look for more credit, to buy a car, or a home, because the lower the credit score the higher the interest rate you'll pay on the money.  

Another good trick if you own a home and have any equity in it all, open a Line of Credit against your home.  My current Home Equity Line of Credit is for 50k.  That means I have up to $50,000 to draw on if I need it, and I’m locked into a low interest rate on that money.  But in all honesty the interest rate doesn’t really matter because the money you use from the HELOC is almost like an interest free loan from the government because the interest on the Home Equity Line of Credit is tax deductible at the end of the year.  So instead of charging a big purchase on your credit card and paying interest, take some money from your HELOC and pay for that purchase, and it won’t cost you a thing.  I’m not an accountant so don’t take my word for it, check with a tax accountant to make sure this is true in your situation.  Free money is always good, and it can only help you raise your credit score.  Just make sure that you always pay at least the minimum monthly payment on the account.

2 Contributions
0 People Helped

My score drop 58 points, too and I don't know why. I can't even imagine why because in the last couple of months I didn't buy anything big or rented or anything else exeptional happens with any account or credit card.

1 Contribution
2 People Helped

i pay my bills one time

Helpful to 2 out of 6 people

why is my score so low du i have to get lawyer b on timee cause this not fair i pay my bills every moth

Reply by
onelovekissyface

1 Contribution
0 People Helped
Helpful to 0 out of 4 people

Enter Your Reply same 

Top Contributor

Reply by
Floridabiker777

52 Contributions
509 People Helped
Helpful to 13 out of 13 people

Creditkarma gives you your Vantage 3.0 score while there's still Fico around which is probably  most popular.  I would check my Fico scores also.  These two types of scores can vary greatly.  And there are many, many more out there!  Remember to use your cc's and have only one reporting a balance every month for optimal scores.  Also try & keep that at 1% and no higher than 9%.  You would be surprised what a difference having 4/5 cc's reporting a balance as opposed to 1 cc reporting a balance will make.

2 Contributions
2 People Helped

Helpful to 1 out of 6 people

my score dropped 50 pt. now im at 785, please help

Results 1-7 of 7Results 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.