Personal Finance

My Credit Score is shockingly low

  • Last Updated:
  • Jan 15th, 2018 4:27 pm
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[OP]
Newbie
Oct 23, 2017
10 posts
1 upvote

My Credit Score is shockingly low

I signed up for Transunion Credit Monitoring after Nissan got hacked and offered it for free.

My score is shockingly at 670 - poor.
  • My only Debt is my mortgage and car.
  • Paid off my student loans
  • I use my credit card for everything for the points - about 3-4K per month, but it gets paid off every month in full.
  • All my bills are pre-authorized, so no missed payments.
I have three credits cards and I only use the one.
I understand there is a credit utilization ratio for my credit card - but does that really knock down my credit this low? (the credit card limit is 10K for the one I use 99% of the time, my other older ones are 20K and 1K and they just sit in the drawer)
From what I remember, when I was getting my mortgage back in 2016 - I was in the 800's, I recently got a new Infiniti without any credit issues less than 3 months ago.

Do I need to take action?
44 replies
Deal Fanatic
User avatar
Mar 23, 2008
5701 posts
3014 upvotes
Edmonton
You should get your actual credit report, from both Transunion (CreditKarma offers it for free) and Equifax (as far as I know, you can get your score for free from Mogo and Borrowell, but not the complete report). If you get the actual report, it should give suggestions as to what's affecting your credit score.

Utilization is one aspect, but since you have 31k of available credit and only utilize < 15%, that shouldn't be affecting you negatively. Something else is dragging it down. I would investigate further, if I was you.

C
Newbie
Aug 29, 2017
25 posts
11 upvotes
There are ways to sign up for a free month of Equifax monitoring, which includes unlimited credit reports.. I used it when I needed a credit report for a rental application.

https://forums.redflagdeals.com/equifax ... h-2082727/

You need to input a credit card, but I wasn't charged in the first month.. make sure you cancel before the end of the month or else they'll charge for the second month. You can cancel early and you'll still have access for the rest of the month. No pro-rating. No idea if you can sign up multiple times.
[OP]
Newbie
Oct 23, 2017
10 posts
1 upvote
Thanks for the tips, does requesting to see my credit score lower it even more?

Can TransUnion be wrong? When I signed up, it asked for my SIN, but it said it was optional, so I didn't give it.

Also, in term of credit utilization, does it count towards all credits cards, or just the one card? (10k vs 31k)
Sr. Member
Mar 3, 2009
663 posts
167 upvotes
Ottawa, ON
playerunknown wrote:
Jan 11th, 2018 10:54 am
Thanks for the tips, does requesting to see my credit score lower it even more?
No - your score does not change when you request to view it yourself.
playerunknown wrote:
Jan 11th, 2018 10:54 am
Can TransUnion be wrong? When I signed up, it asked for my SIN, but it said it was optional, so I didn't give it.
It's unlikely, but you will know for sure if you request the report as it will show your name, address, and previous addresses.
playerunknown wrote:
Jan 11th, 2018 10:54 am
Also, in term of credit utilization, does it count towards all credits cards, or just the one card? (10k vs 31k)
I believe all credit cards. Although I am not 100% sure. Somebody else can chime in here.
Deal Addict
User avatar
Aug 24, 2016
3475 posts
2092 upvotes
Where am I? That is …
Ignore TransUnion TransRisk Score, period. Nobody uses it, and it’s offensive that it is provided to consumers, to unnecessarily make them paranoid about their credit.
As long as your bills are paid on time, your utilization is good (not a bunch of maxed out lines), and you’re not a credit seeker (many inquiries every year), your credit score will be good.
When you start getting declined for credit, that’s when you know your credit is not so good.
[OP]
Newbie
Oct 23, 2017
10 posts
1 upvote
coolintheshade wrote:
Jan 11th, 2018 11:07 am
Ignore TransUnion TransRisk Score, period. Nobody uses it, and it’s offensive that it is provided to consumers, to unnecessarily make them paranoid about their credit.
As long as your bills are paid on time, your utilization is good (not a bunch of maxed out lines), and you’re not a credit seeker (many inquiries every year), your credit score will be good.
When you start getting declined for credit, that’s when you know your credit is not so good.
Thanks everyone, I may check out Equifax for this.
The info that TransUnion has is correct on my profile, just I'm shocked at how low the score is and I see no reasonable explanation for this.

Does income play a factor?
[OP]
Newbie
Oct 23, 2017
10 posts
1 upvote
also, does it matter that my report does not mention my mortgage at all?

Also, since its my first mortgage, and relatively new, will that affect my score negatively? since technically most of my credit is now tied up in the house?
Member
Mar 16, 2011
306 posts
145 upvotes
coolintheshade wrote:
Jan 11th, 2018 11:07 am
Ignore TransUnion TransRisk Score, period. Nobody uses it, and it’s offensive that it is provided to consumers, to unnecessarily make them paranoid about their credit.
As long as your bills are paid on time, your utilization is good (not a bunch of maxed out lines), and you’re not a credit seeker (many inquiries every year), your credit score will be good.
When you start getting declined for credit, that’s when you know your credit is not so good.
THIS.

Transrisk score has proven to be complete bumpkiss for me. It's 200+ points LOWER than every other score I've received and Lenders themselves have confirmed my credit is excellent. And the Transrisk score pretty much stays the same no matter what for 3-4 months at a time. I get offers all the time and have had no problems getting cards, etc. in the meantime.
Newbie
Jan 10, 2018
78 posts
26 upvotes
Your available credit is too high in my opinion and probably why the score is low. I'd eliminate the $20k CC that's where your problem lies... If you have around $13K available total on credit cards and everything else is clean on your record your score will be in low 800's
Jr. Member
Jan 5, 2018
197 posts
93 upvotes
coolintheshade wrote:
Jan 11th, 2018 11:07 am
Ignore TransUnion TransRisk Score, period. Nobody uses it, and it’s offensive that it is provided to consumers, to unnecessarily make them paranoid about their credit.
As long as your bills are paid on time, your utilization is good (not a bunch of maxed out lines), and you’re not a credit seeker (many inquiries every year), your credit score will be good.
When you start getting declined for credit, that’s when you know your credit is not so good.
Might be a dumb question, but is TransRisk the score provided by Credit Karma?

I just had a new credit inquiry on Credit Karma and my credit score from 817 to 763 between Jan 5 and 10. What explains this? Is this the TransRisk score I'm getting from Credit Karma?
[OP]
Newbie
Oct 23, 2017
10 posts
1 upvote
Tommycoupons wrote:
Jan 11th, 2018 12:04 pm
Your available credit is too high in my opinion and probably why the score is low. I'd eliminate the $20k CC that's where your problem lies... If you have around $13K available total on credit cards and everything else is clean on your record your score will be in low 800's
I thought having credit and not using it is a good sign.
Newbie
Jan 10, 2018
78 posts
26 upvotes
playerunknown wrote:
Jan 11th, 2018 12:33 pm
I thought having credit and not using it is a good sign.
the problem is having too much ACCESS to credit. The RISK lies in the ability for that person to all of a sudden max out all their available credit thus greatly reducing their ability to pay.
having a bunch of cards you never use isn't going to do anything to your rating except lower it if you amass too much available credit.
Deal Fanatic
User avatar
May 9, 2009
5335 posts
1141 upvotes
Montreal
First, that's not low. It's not amazing either but it's not "shockingly low". Second, you have all the credit you need including a mortgage, so your credit score holds relatively little importance to you for the time being.

Do your due diligence and make sure everything is accurate on your reports. Assuming everything is accurate, don't lose sleep over this as you'll be fine.
Newbie
Apr 23, 2014
49 posts
12 upvotes
North Vancouver, BC
playerunknown wrote:
Jan 11th, 2018 11:17 am

Does income play a factor?
Not at all - income info is held by the bank or taken at time of application, it doesn't get forwarded to the credit bureaus. Which leads me to...
Tommycoupons wrote:
Jan 11th, 2018 12:04 pm
Your available credit is too high in my opinion and probably why the score is low. I'd eliminate the $20k CC that's where your problem lies... If you have around $13K available total on credit cards and everything else is clean on your record your score will be in low 800's
Completely and utterly false. Since the bureau doesn't have income information this cannot be affecting the score. However you are correct that if you had too much available credit relative to your income, a lender may see you as a risk and refuse credit when you apply for more. 13k of credit is completely serviceable by someone with a 100k income, but would be challenging for someone with 5k. Blanket statements on affordability aren't helpful, and closing down the 20k card as you suggest would probably WORSEN OP's score as it would increase his utilization, which is in most scoring models.
playerunknown wrote:
Jan 11th, 2018 11:32 am

also, does it matter that my report does not mention my mortgage at all?
It should at some point, it may not have been reported yet as you note that it's new. This being the case there isn't much history so there shouldn't be much (if any) adverse impact from the missing information, but if it was missing with several years of good payment history that would likely be bad.
coolintheshade wrote:
Jan 11th, 2018 11:07 am
Ignore TransUnion TransRisk Score, period. Nobody uses it, and it’s offensive that it is provided to consumers, to unnecessarily make them paranoid about their credit.
As long as your bills are paid on time, your utilization is good (not a bunch of maxed out lines), and you’re not a credit seeker (many inquiries every year), your credit score will be good.
When you start getting declined for credit, that’s when you know your credit is not so good.
So, so much this. My TransRisk score is astronomical for some unknown reason, 100+ points off my Equifax score. The important thing to remember is lenders typically have their own scoring models, and all they do is suck in information from the bureau to run through their own system. Get your report, check the information is correct, and sleep easy.

As has already been mentioned, you can get your full TransUnion report on CreditKarma, but you can also request a 'consumer disclosure' (report sans-score) for free from both bureaus whenever you want. They've got an IVR system you plug your details into over the phone and they'll mail it to you. Slower, but free.

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