Personal Finance

Equifax score - why did it go down??

  • Last Updated:
  • Nov 24th, 2013 4:22 am
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Apr 4, 2013
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When you state that you ran your credit score, what does that mean? Did you personally request it or did you obtain it by another means? Without seeing the report itself, there is little advice anyone can give you other than the general advice already provided. Your credit score is not affected at all by your employment status or your income. People making more money do not necessarily have better credit scores. In some cases, people who make more money actually have lower credit scores as they tend to take on more debt.
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Aug 18, 2005
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mikeymike1 wrote:
Nov 23rd, 2013 4:02 pm
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.
Let's say I have done extremely well in business and have $10,000,000 in assets and maintain zero open debt accounts in the long term, I think this is a result of "doing smart things with money." You're telling me I will therefore have a high credit score?

I think the scenario you described here assumes that people have long-term life aspirations of always having debts and always having mortgages. Consider 2 people:
a) A person of average income who does this and pays it on time may have a high credit score,
b) someone who's a multi-millionaire but has a a credit card to use in locations where Interac is not accepted.
Which one has greater capacity to repay debt? Which one has a significantly higher credit score?

This is why I think people need to focus more on where they want to be 10, 20, or 30 years from now, and what "smart things" will lead to it, rather than figuring out what will boost a number from some proprietary formula.
What if there were no hypothetical questions?
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farmand wrote:
Nov 23rd, 2013 5:23 pm
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?
Sounds like 3 things are going on:
a) utilization ratio slowly dropping
b) number of recent inquiries slowly dropping
c) average age of accounts slowly increasing

So I would expect an upward trend in the score, but nothing huge since your utilization will still remain high.
What if there were no hypothetical questions?
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Jucius Maximus wrote:
Nov 24th, 2013 2:00 am
Let's say I have done extremely well in business and have $10,000,000 in assets and maintain zero open debt accounts in the long term, I think this is a result of "doing smart things with money." You're telling me I will therefore have a high credit score?
No, you personally would not have a high credit score. If this has been your stance for a lengthy period of time you would score poorly and would be considered a moderate to high risk because your bureau is blank.

Jucius Maximus wrote:
Nov 24th, 2013 2:00 am
I think the scenario you described here assumes that people have long-term life aspirations of always having debts and always having mortgages.
I didn't offer a scenario in my reply.
I was refuting your claim that credit scores are BS.
You claim they are only a gauge for tardiness but fail to recognize that they are also a gauge for people who pay well. The by-product for people who pay well(besides good credit sores) are extension of credit limits when and if they require it and better lending rates than people with low scores or no credit at all.
Jucius Maximus wrote:
Nov 24th, 2013 2:00 am
Consider 2 people:
a) A person of average income who does this and pays it on time may have a high credit score,
b) someone who's a multi-millionaire but has a a credit card to use in locations where Interac is not accepted.
Which one has greater capacity to repay debt? Which one has a significantly higher credit score?
None of what you said makes any sense whatsoever and is a ridiculous comparison at best.
Jucius Maximus wrote:
Nov 24th, 2013 2:00 am
This is why I think people need to focus more on where they want to be 10, 20, or 30 years from now, and what "smart things" will lead to it, rather than figuring out what will boost a number from some proprietary formula.
What makes you think people on here are not thinking of where they want to be 20-30 years from now? Majority of people are working just to get by to support their families with aspirations of their own. Not all are consumed with wanting to be make-believe internet millionaires.
----------------------------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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