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Posted by jconf 2 years ago In:

jconf
jconf Asked:

Credit Score Drop


 

I recently paid off a balance on my Visa of over $8,00 from savings. On the next monthly FICO score update my credit score had dropped from 801 to 784.There were no other factors which should have influenced my score.  What's up with that?

 

Jeff

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Book
Book Answered:

First, FICO scores are based on reports from the credit bureaus, which usually update quarterly.  So, the payoff may not have posted yet when you got your new score.

You actually have 3 FICO scores, one for each of the major credit bureaus, and each bureau may not have the same information.  So, the previous score may have been Equifax's and the more recent score may have been from TransUnion. 

Plus, your info is being compared to other people in your bracket; how they are handling their debt can reflect on determining your score.

Both 784 and 801 are fairly high scores.  850 is considered perfect.  Congratulations! 

I'd agree with you, but then we'd both be wrong.
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Debt Guy
Debt Guy Answered:

I agree with the answer above from Earls Brain.  Bad remarks on your credit report seems to show up right away but improvements seem to be more of a slow and steady type of movement that take more time to show.

Do you need <a href="http://www.budgetplanners.net/" rel="nofollow">debt consolidation</a> help or advice? Get your <a href="http://www-free-credit-report.com/" rel="nofollow">free credit report</a><a href="http://www-free-credit-report.com/" rel="nofollow"> </a> and credit score now.
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archercredit
archercredit Answered:

The credit bureaus might not of updated your score yet with the new balance.  Also make sure you are checking your credit report to make sure nothing else has changed that wasn't authorized.

Only other thing is if the credit card was closed already or had a derogatory mark on it and when you paid it off it updated your credit report to show the closed or derogatory account has more recent.

Remove late payments that are errors and use credit repair if you see something on your credit report that isn't yours.

Hope your score looks better next check.

<a href="http://archercredit.net" rel="nofollow">Credit Repair</a> <a href="http://ilovecreditrepair.com" rel="nofollow">Credit Restoration</a> <a href="http://creditjerk.com/" rel="nofollow">Credit Questions</a> <a href="http://questfor700credit.com/" rel="nofollow">700 Credit Score</a>
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TheCreditTruth
TheCreditTruth Answered:

Improvements do take time.  Did the credit card company lower your available credit limit when you paid off the card?  That is a common occurrence these days and would have a negative effect of your score.

It is also possible that there is inaccurate information on your report.  Are you looking over your credit report for mistakes as well as tracking your score?

Make the most of your <a href="http://www.thecredittruth.org/" rel="nofollow">free credit report</a> .
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willington11
willington11 Answered:

Credit score factors that affect your rating include paying bills on time. Find out other credit score factor.

http://www.creditscorefacts.net/

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