This seems strange. I track my credit score on creditkarma.com and the score dropped 10 points since the last time I checked. When I look at What Changed the only difference thing is that my mortgage loan has dropped off my report since it has been closed for 7 years. In the big picture it doesn’t matter since I’m still over 800 and don’t intend to take out any additional credit in the near future. It just seems strange that dropping an account that has been closed that long and doesn’t affect my available credit would cause a drop.
It just seems strange that dropping an account that has been closed that long and doesn’t affect my available credit would cause a drop.
Well, you would need to look at the specific reasons that your score is what it is. My guess is that it’s the change in credit mix that changed your score, especially if you don’t have any other installment loans on your record any longer. Installment loans don’t impact your credit limits, but having installment loans on your record shows that lenders were willing to lend you a large sum all at once and trust you to pay it back.
AJ
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Thanks. That could be it. The only open accounts I have right now are credit cards and only one of them carries a fairly low balance and will be paid off in the next few months. They do show two closed auto loans - one closed in 2015 and the other in February this year.
My experience with credit bureaus has been mixed. From what I can tell they talk about the percentage of how much one situation or another effects your score, but when I do the math it doesn’t add up. I have become resigned to checking my report and disputing things every two years. I also keep my files frozen until I plan to apply for something, then when the process is finished I freeze it all again. I also review any open accounts monthly for anything out of the ordinary. That’s the only way I know to limit identity theft.
AC YMMV
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It could also be the balance when your credit cards reported the current balance. My score bounces more than 10 points during the year and it seems to be based on the balance when reported. They are paid off in full each month.
My credit score dropped around 30 points when I booked a cruise. Even though it was paid off before any finance charges, it still took several months for my credit score to recover.
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My score bounces more than 10 points during the year and it seems to be based on the balance when reported. They are paid off in full each month.
Last year when I was shopping for a new house, I got in the habit of paying off my credit cards 1-2 days before they generated my monthly statement.
For several months in a row, all my credit cards reported a zero balance, and by the time I applied for a mortgage, my score had climbed about 30 points.
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I got in the habit of paying off my credit cards 1-2 days before they generated my monthly statement.
Not all credit card companies report balances when the monthly statement is generated. Apparently true for your accounts.