Personal Finance

Equifax score - why did it go down??

  • Last Updated:
  • Nov 24th, 2013 4:22 am
[OP]
Newbie
Oct 28, 2010
68 posts
19 upvotes

Equifax score - why did it go down??

I ran my credit score in January and it was at 735. I ran it again yesterday and my score is now 715. I havent applied for any new credit cards in years, i have had no delayed payments, never in my life have I missed a paayment. I make about twice as much as I used to since (no longer a student). I dont understand what is causing it to go down. Was hoping someone could explain to me what is happening. Do i need to have a loan to improve my score?

Sorry for any spelling mistakes - typing on my phone.
18 replies
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Aug 23, 2003
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Obviously I would be hard for anyone here to comment as we can't see you full credit report. I would ask the credit reporting agency.
[OP]
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Oct 28, 2010
68 posts
19 upvotes
Yeah I figure I will give them a call. I was just wondering in general what could cause a score to drop other than the obvious delayed payment and loan/credit card applications.
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Aug 23, 2003
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kayox wrote:
Nov 23rd, 2013 1:04 pm
Yeah I figure I will give them a call. I was just wondering in general what could cause a score to drop other than the obvious delayed payment and loan/credit card applications.
I am no expert but many "hard" inquiries onto your report may cause this. Unpaid fraudulent debit in your name that goes to collections..and the list goes on....

http://credit.about.com/od/creditreport ... e-drop.htm

http://credit.about.com/od/creditreport ... -hurts.htm
Sr. Member
Sep 24, 2010
917 posts
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Toronto
The ideal utlization ratio is 30% of the available credit. If yours is too low or too high, then it might be impacting the score.
Jr. Member
Jul 2, 2007
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Toronto
:arrowu: that!
For efficiency issue, most banks send the report to TU and Equifax on the 1st of the month.
To get the best score, make sure to pay down your debt 5 days before the 1st of the month, and check your credit report on the 2nd of the month (or the 3rd if the 1st is on the weekend).
Somehow, having 0 balance will lower your credit score a bit.
The sweet spot is to leave less than 35% (1-10% for the highest possible score) utilization ratio (balance/max credit limit) on your credit card(s).
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Oct 7, 2012
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ainvan wrote:
Nov 23rd, 2013 3:01 pm
:arrowu: that!
For efficiency issue, most banks send the report to TU and Equifax on the 1st of the month.
To get the best score, make sure to pay down your debt 5 days before the 1st of the month, and check your credit report on the 2nd of the month (or the 3rd if the 1st is on the weekend).
Somehow, having 0 balance will lower your credit score a bit.
The sweet spot is to leave less than 35% (1-10% for the highest possible score) utilization ratio (balance/max credit limit) on your credit card(s).
Insider info? ^^
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Aug 18, 2005
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kayox wrote:
Nov 23rd, 2013 11:47 am
I ran my credit score in January and it was at 735. I ran it again yesterday and my score is now 715. I havent applied for any new credit cards in years, i have had no delayed payments, never in my life have I missed a payment. I make about twice as much as I used to since (no longer a student). I dont understand what is causing it to go down. Was hoping someone could explain to me what is happening. Do i need to have a loan to improve my score?

Sorry for any spelling mistakes - typing on my phone.
Some possibilities:
You closed an old account and so the average age of accounts went down.
Average balance on your accounts went up due to higher credit usage or closing an account.
Possible error in your credit report and someone else's account got attributed to you.
The formula is proprietary and so it could have changed or have some randomization in it.

Note: Your income does not directly affect your credit score. This is one of the reasons why I think the credit score is a BS thing to begin. It can be an indicator when you're doing poorly with money, but NOT necessarily an indicator when you're doing well with money. I think people these days at too worried about their credit score and should instead be more concerned about doing smart things so you can provide for yourself rather than having to rely on banks or loans that care about credit score.
What if there were no hypothetical questions?
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Mar 25, 2005
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gogoblender wrote:
Nov 23rd, 2013 3:14 pm
Insider info? ^^
Ratios are public info.
Jucius Maximus wrote:
Nov 23rd, 2013 3:19 pm
Some possibilities:
You closed an old account and so the average age of accounts went down.
Average balance on your accounts went up due to higher credit usage or closing an account.
Possible error in your credit report and someone else's account got attributed to you.
The formula is proprietary and so it could have changed or have some randomization in it.

Note: Your income does not directly affect your credit score. This is one of the reasons why I think the credit score is a BS thing to begin. It can be an indicator when you're doing poorly with money, but NOT necessarily an indicator when you're doing well with money. I think people these days at too worried about their credit score and should instead be more concerned about doing smart things so you can provide for yourself rather than having to rely on banks or loans that care about credit score.
Exactly. I've had the same score with minimal income and FT income. Income itself simply is not captured in the score.
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ainvan wrote:
Nov 23rd, 2013 3:01 pm
:arrowu: that!
For efficiency issue, most banks send the report to TU and Equifax on the 1st of the month.
To get the best score, make sure to pay down your debt 5 days before the 1st of the month, and check your credit report on the 2nd of the month (or the 3rd if the 1st is on the weekend).
Somehow, having 0 balance will lower your credit score a bit.
The sweet spot is to leave less than 35% (1-10% for the highest possible score) utilization ratio (balance/max credit limit) on your credit card(s).
Most of what you said is false.
Tradeline reporting does not mostly occur at 1st of the month.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
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Apr 16, 2007
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Jucius Maximus wrote:
Nov 23rd, 2013 3:19 pm

Note: Your income does not directly affect your credit score. This is one of the reasons why I think the credit score is a BS thing to begin. It can be an indicator when you're doing poorly with money, but NOT necessarily an indicator when you're doing well with money. I think people these days at too worried about their credit score and should instead be more concerned about doing smart things so you can provide for yourself rather than having to rely on banks or loans that care about credit score.
Doing 'smart things' would be to service your debts on time as required by the financial obligations your signed and agreed to. The credit score(s) ONLY reflect those 'smart things'.

Paying your rent/mortgage on time is a 'smart thing' is it not??? Why should the rules be different when it comes to credit card debt, auto payment debt or any other debt?

Don't blame your tardiness and the credit bureaus reporting of tardiness on your inability to control your overspending habits.
What's really BS is blaming the credit bureaus for reporting what you can't and don't pay.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
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mikeymike1 wrote:
Nov 23rd, 2013 3:56 pm
Most of what you said is false.
Tradeline reporting does not mostly occur at 1st of the month.
When does it occur then
Or does it happen "live" all month?
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gogoblender wrote:
Nov 23rd, 2013 4:19 pm
When does it occur then
Or does it happen "live" all month?
Majority of FI tradeline reporting occurs only once a month(some credit products report twice a month ie: mortgage balances)
FI's in general try to spread out their tradeline reporting when new accounts are opened.
Tradeline reporting usually coincides with credit products statement dates so as to report the correct statement balance and min payment amt due.
While tradeline reporting is spread out on different dates within a month(28th as last) the largest percentage of reporting is performed between the 17th to the 20th of each and every month. This in turn allows the min payment and the grace period to pass the beginning of month as people seem to correlate month end/first as billing month(rent/mortgage due dates)

Most FI's will allow statement date changes for those who wish to make utility/CC payments in middle of month so as to not coincide with rent/mortgage due dates.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Newbie
Jun 3, 2013
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Question. My score stand at 658. Utilization ratio on revolving accounts is 65% and i will lower it but very slowly (2% per month). It's because i have a RSP loan (kind of line of credit with monthly payment) and it's consider as a revolving account. No late payment, no new credit inquiries till 6 months and i don't expect any inquiries in the next 1 year. I have 12 inquiries in the past 2 years. Average age will increase slightly as no account will be close. What can i expect in the next 6-12 months? My score will decrease slighlty? increase slightly? or i will stay around 660?

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