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  1. #11
    Registered User New Member
    Posts
    3

    Hard Inquiries or Credit Card Utilization, is my guess

    Are you using the same platform to get your credit score. I am assuming yes. Because different companies use different scoring systems such as FICO or Vantage and those two scoring platforms can differ dramatically. From my understanding you could even potentially have 2 different FICO scores as different businesses use calculation or weigh certain things in your credit file differently according to their businesses lending goals and risk management.

    Here are some potential things you should look at:
    • Hard Inquiries
    • Credit Card Utilization Rate
    • Derogatory Items - Non Payment
    • Late Payment
    • Decrease in Credit Accounts in Good Standing


    My guess would be recent inquiries into your credit by a business could be the cause or another culprit would be the use of your credit cards past a certain threshold. This actually is a major factor in your credit score. I used to keep my balance at 90% used thinking that making regular payments was a good thing when in fact it lowers your score significantly because credit card utilization weighs more significantly than the fact that I am making on time payments on the actual score. So making payments and having a low balance is best, ideally below 20-30%.



    Do let us know though.
    Best

  2. #12
    Registered User Semi Pro Member
    Posts
    271
    Yvonco -

    Thanks for the great pointers. The one thing from your list that may be the reason is an increase in credit utilization. It was holiday season, after all. And, to be honest, it never occurred to me that I could be dinged for actually using my credit.

    But I should have that back to normal levels by the end of March or early April.

    I'll keep an eye on things and report back periodically.

  3. #13
    Registered User New Member
    Posts
    3
    Toman23-

    Thanks for reaching out. We all are interested in knowing how it works out for you and the relationship these actions have on one´s credit profile, thanks for sharing you story and contributing to us better understanding the things that make a difference. But do check on your credit profile to see the credit card utilization portion and let us know what really did it.

  4. #14
    Registered User Semi Pro Member
    Posts
    271
    Checked in on the Capital One site just now, and my score is heading back up. Only 5 points. But still progress back to where I was.

    I think Yvonco was right - it was my extensive utilization of credit in November and December. But I made some big payments last month. And I should have my balances paid down close to zero by the end of April.

    Thanks to everyone for your advice and well wishes. And I'll be sure to keep you up to date on how this goes.

  5. #15
    Registered User Semi Pro Member
    Posts
    300
    Good luck on your comeback!

  6. #16
    Registered User Semi Pro Member
    Posts
    271
    And the comeback is complete! My score now edged above what it was at the end of last year.

    Playing down my Christmas balances really made a difference. And getting my taxes in early this year. Thank you refund!

  7. #17
    Registered User Semi Pro Member
    Posts
    416
    This is great news! Now keep up the momentum and get those credit card balances down to zero.

  8. #18
    Registered User Junior Member
    Location
    LA
    Posts
    25
    That's so odd because my score dropped by 18 points for no apparent reason as well. And it was with my Capital One tracker that I get monthly. I wonder if it is a glitch in their system.

  9. #19
    Registered User Semi Pro Member
    Posts
    271
    Quote Originally Posted by JonL4 View Post
    That's so odd because my score dropped by 18 points for no apparent reason as well. And it was with my Capital One tracker that I get monthly. I wonder if it is a glitch in their system.
    Mine came back, and has been steady since with the Capital One tracker. Next time, I may check against another source before getting worked up about it.

    Anyway, I hope your experience ends up being similar to mine.

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