credit score took a slight hit

[bjl584]

So I checked my credit score this morning. It dropped 8 points from a few months ago. I'm not sure why. I haven't had any late payments on anything. I did go on vacation last month and used my credit card for pretty much everything. The bill is actually due in a few days, which I'll be paying off in full. I'm not sure what dinged my score. Nothing looks suspicious or out of the ordinary anywhere so far as I can tell.

[Petunia 100]

Perhaps your credit utilization ratio changed? If that is the case, your score will recover next month when your credit card issuer reports your new lower balance.

[bjl584]

Perhaps your credit utilization ratio changed? If that is the case, your score will recover next month when your credit card issuer reports your new lower balance.

Maybe. But I never carry a balance. Even with everything that is on my card right now, my ratio is like 6.4%.

[JulieAlbright]

yeah, it's likely just the balance on the credit card.

The credit scoring models seem to have some sort of accommodation for "What is your typical balance over <however many> months. But at the same time when the balance on one of the credit cards spikes for one or two statements, the credit scores go down a bit.

[autoxer]

Maybe. But I never carry a balance. Even with everything that is on my card right now, my ratio is like 6.4%.

It doesn't matter if you carry a balance from month to month, at the snapshot in time when they checked your score, you had a higher utilization than the previous month, because of the charges that you haven't yet paid off.

If you are paying everything on time, then there isn't really much to worry about.

[Eagle]

So I checked my credit score this morning. It dropped 8 points from a few months ago. I'm not sure why. I haven't had any late payments on anything. I did go on vacation last month and used my credit card for pretty much everything. The bill is actually due in a few days, which I'll be paying off in full. I'm not sure what dinged my score. Nothing looks suspicious or out of the ordinary anywhere so far as I can tell.

The same thing happened to me this past month. My credit score took a dip of 16 points. Probably because at the time of the snapshot of my credit I had a 69% utility. I expect it to go back up this month. No big deal.

[moneysma]

Unless you are planning on taking out a loan, what does it matter? I'm not trying to sound mean, but I don't understand the importance that is placed on having the highest credit score possible if you aren't looking to borrow any money.

I get that insurance companies and employers now look over your score, but as long as you pay your bill in full each month and you've verified there aren't any fraudulent charges, I would expect the score to fluctuate a few points all the time. We never know what algorithms or tweaks are being made in the background that will cause small changes.

It sounds like you have a great handle on your credit. I wouldn't worry about a few points here or there in a given month.

[bjl584]

Unless you are planning on taking out a loan, what does it matter? I'm not trying to sound mean, but I don't understand the importance that is placed on having the highest credit score possible if you aren't looking to borrow any money.

I get that insurance companies and employers now look over your score, but as long as you pay your bill in full each month and you've verified there aren't any fraudulent charges, I would expect the score to fluctuate a few points all the time. We never know what algorithms or tweaks are being made in the background that will cause small changes.

It sounds like you have a great handle on your credit. I wouldn't worry about a few points here or there in a given month.

I don't really "care" per say that my score took a hit. I was just more curious as to why it did.

[YolandoAmaya]

Sometimes a credit score drop because of following reasons:
If your loan payment is late.
Your last collection sent off your credit report.
If you made a new application for credit card.
If your bankruptcy fell off your credit report.

[corn18]

I paid off all my car loans which brought all my debt balances (except mortgage) from $93,000 to zero. No CC debt. I would have thought that was a good thing but my credit score went DOWN 10 points. At all 3 agencies. It's now back to over 800, but I found that interesting.

[bjl584]

I paid off all my car loans which brought all my debt balances (except mortgage) from $93,000 to zero. No CC debt. I would have thought that was a good thing but my credit score went DOWN 10 points. At all 3 agencies. It's now back to over 800, but I found that interesting.

This same thing happened to my mom and step dad a few years ago when they paid off their mortgage.