7 Reasons Your Credit Score Might Drop!!!
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- Опубліковано 5 лип 2024
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1. late pay 1:26;
2. big purchase 3:32
3. collections 6:17
4. applied for credit 7:48
5. lower credit limit 9:38
6. closed account 11:00
7. paid off loan 12:43
forget all that, she's hot
Thank youuuuuu
Yay! This is what I was looking for.
Damn I thought I could just buy whatever with my credit card and pay it right back
@@msemanny1772 you can but it is more to it
Following your utilization advice. For the first time in my life my credit is constantly moving up. Thanks! For your time. And for your simple advice.
Thanks for watching and commenting! Happy for you!
I’m a new subscriber. I love your channel! I’ve already gotten a better understanding of certain things. Thanks so much!
You are amazing! Thank you so much for all of these videos.
You're welcome and thanks! LOL
Thanks for the info :)
You're welcome! Thanks for watching and commenting!
Thanks for sharing! I didn't realize how important utilization was until recently! I did an improving credit video how I got to an 800 score and without realizing, utilization is a huge part of it! Thanks for the additional info again :D
Glad to hear that! Thanks for watching and commenting!
I love how clear and simple you explain things .Good thing I listed because I finish paying my student loan next month :)
You got to watch in perfect timing! Thanks for watching and commenting!
Awesome information, thank you!!!
You're welcome!
super helpful thank you!!
THIS LADY IS NAILING IT! HUGE!
#1 will destroy your credit big time! NEVER EVER BE MORE THAN 30 DAYS LATE!
It actually DOES effect you the most.
Truth! Thanks for watching and commenting!
I agree. Navy Federal reported me late and I lost 32 points. I needed a drink after that. I won't be late again, I bet.
Really like listening to you. Very good info.. thank you
Thanks for watching and commenting!
great video as always!!
Thanks! I appreciate that!
Thanks for the Video
Thanks for watching and commenting!
Thank you so much for your advice. I just paid off all my credit cards but one but I also just paid off a personnel loan. As you have explained, logically it makes sense to want to pay off our bills and be debt-free but unfortunately, that's not kool. I do have two other loans, one that will be around for a while so the mix of credit makes sense. You have squared me away.
Good mentor, Impressed.
Yaneli your such a huge help to me. For many years i didnt even know how to use credit card correctly and now thanks to you my credit score is increasing. Gonna buy a house soon thats my goal. Thank u.
You're welcome! I'm so happy to hear that! Thanks for watching and commenting!
I had a 89% credit utilisation on my 2 months previous statement I bought an apple MacBook my score dropped 35 points- I paid back in full. 2 months after I’m up 105 points.
My score dropped 63 points. I have two credit cards opened , no late payments, no types of loans/ mortgages.... I believe My mistake was to call for a mortgage estimate at quick loans.... on feb 13th ... a week ago I received an email stating the 63 point drop... and I figured that quick loan call was a hard pull ... but does anyone know is 63 points normal ? I didn’t sign anything nor fill out any application. I also asked the lady over the phone if it would impact my credit if she pulled it and she said only a couple of points “nothing to worry about “
You can reverse late payments by sending letters and fight for it. Some people go to credit repair and get it fix. I’ve seen people late payment reversed. Even bad credit can be reversed.
Another great vid, thank you! Question on point 6, when you say keep an account active, how often does that mean to use it?
I have one main credit card I use monthly and a second card I use maybe once a year for a big spend, then pay it straight off after statement date.
That depends but usually once or twice a year is fine. Thanks for watching and commenting!
Thanks sister
You're welcome! Thanks for the comment :)
She is so gorgeous
Steven Neidlein with the BRAINS 👏🏽😍
Horn Dog
Sometimes depending on the situation paying off a collection that is not a good idea because you can pay off the debt but the collection of stilly a credit report so advising people to pay off a collection but they don't remove it from your credit report is not good information unless you establish a pay for delete or you dispute it would inaccuracy would be the better choice
one thing im getting is that school was just teaching us to get things done on time every time it didnt matter what was being done as long as it was done on time
Thank you MissBe! I closed an account but thought I was doing something wrong by paying it off.I totally get why I should have different types of credit...it's a lo tmore to it than just paying bills on time lol
That's right! Gotta look at ALL 5 factors!!
I'm one of those guys who pay all my cards before the statement date (so I have 0% utilization on ALL of my cards). Chase closed my card (they gave me a select offer; then cancelled my card for applying for a new card) and because of my zero utilization my score wasn't affected at all.
I know a lot of people don't like this strategy because you don't get the maximum credit points having zero utilization on ALL of your cards and you give up your grace period but when you do this strategy utilization becomes a non-issue (and as a former Dave Ramsey fan I feel comfortable saying I'm still debt-free when there are NO balances on my cards).
I could understand that! Thanks for watching and commenting!
I just started building after many years of avoiding debt altogether. I was at 699, then a self loan got reported and I dropped 73 points. I’m assuming it is temporary.
Thanks
Recently, I experienced, this one here. I closed, one detroit credit union. After I was giving and $1500 increase on my visa credit card. A couple days, ago I saw on credit sesame, my score dropped 32 points! That is a bad habit I really need 2 break.
I wish I would have known this sooner. I just drained my savings account to pay off my student loans. Hooray! No more student debt... and no more good credit score. I tried to be responsible. I regret my decisions. I don't want to "Adult" anymore.
LOL nah you made the right choice! Better to save that money you would have paid in interest fees!
Opening a checking and savings account (most banks & credit unions) will drop your score-hard inquiries (stay on 2 years).
I've never had this happen to me!
INQUIRIES SHOULD BE TAKEN OUT OF THE MODEL! 10 PTS DROP IS NUTS! ESPECIALLY, IF YOU DON'T GET APPROVED IS NUTS! TO BUILD AND MAINTAIN VERY GOOD OR EXCELLENT YOU HAVE TO APPLY FOR IT!
How does late payments on a card you closed yourself affect you? This card has a large balance and I am working on it
What about when you normally maintain a zero balance and when you do use your credit card for a small purchase of $261.00 on a credit card with an $11,000.00 limit and pay that balance a week later? My score dropped 18 points just for using my credit card. So even though I used it for $261.00 and paid it off a week later. The balance increase was reported, but not the payment a week later. This all occurred in the same billing cycle. So if I don't use the card, my score goes down and if I use it my score goes down. Can you explain why this is happening? I've been asking the credit reporting agencies the same questions, but of course, no one will give me a straight answer.
I have a household income of well over $200k and can easily afford to just pay cash for everything. But for the sake of building credit, I use the credit cards.
The credit card companies seem to be reporting usage, but they''re not reporting any payments made shortly thereafter within the same billing cycles. It seems to me that either the credit reporting agencies have a seriously messed up algorithms or someone there just doesn't like me.
Please offer some advise here.
Just keep debt to keep your score in good shape seems to me to be what it goes by.
Thanks for the info! Very helpful! But #7 is so ass backwards with the credit bureau system..lol. Who wants to have $20k college loan or any huge loan lingering on for years?? Lol?
AGREE!!
Really need your help. My credit dropped $100 points today
AWESOME info but Im noticing different advise far as inquiries dropping off. People either say 1 or 2 years. Can you clarify?
Just a caveat, I'm not sure if it's different between credit card companies and other companies, but my hard inquiry (Cell phone company) is going to take 2 years to come off. Keep this in mind when trying to manage hard inquiries and opening new accounts.
Yup! 2 years to wipe off and 1 year to stop affecting your score.
This vid is old but this bob is 🔥🔥🔥
LOL thanks LaTasha! Maybe I'll get this haircut again in 2020 :)
A note on number 7. I have five new car payments left, which will save me $383.13 per month, plus I will have paid off my Citi Diamond preferred card, it starts charging interest this August but I should have it paid by then and save $100.00 per month. This will mean a lot more financial independence but I will take a credit hit. You would think the opposite would happen, if someone were to pay off the loans they would have more money so they would be less of a credit risk but no, banks think the opposite of what we do sometimes.
By the way in no way do I intend to close my Citi account, the Diamond preferred is still a decent card.
Good points! Thanks for watching and commenting!
I'm wondering how installment purchases through credit cards affects my credit score?
I’m not worried about late payment s
Recently my fico score went down 40 points because the credit union that I had my car loan through closed the account but it was an account that I finished paying off years ago probably six years ago or seven years ago and I didn’t have a single late payment everything was on time but I guess because I didn’t use them anymore they close the account. How do you avoid That and how can I work to get those 40 points back it was a big hit
Trying to build credit yet trying not to have any more hard inquirys on my report, Any suggestions
Miss be helpful I must say I love your videos. That being said I'm gonna have to call you out on inquiries. They stay on your credit report for two years not a year, but only hurt your score a year.
You're right about that! I misspoke! Thanks for watching and commenting!
Correct
Number 7 really threw me off. But let me tell you it personally happened when I got 4 ,student loans paid off
I'm waiting for an answer to my previous question. When you use your credit card for a small purchase and you score drops 18 points for no apparent reason other than your using the card. Additionally, the small purchase made was paid off a week later. The purchase was reported but not the payment. Can you explain this? Remember this is all occurring within the same billing cycle.
It's unusual but sometimes the data being sent is super delayed to get there so you will have to wait a few weeks to see the score go back up! Annoying, but not permanent!
My utilization is 2% I always pay on time and never use my cards between the due date and the statement closing date, and they still took 3 points off. Makes no sense at all to me.
Did it go up to 2% from 1%??
Well my student loans will close once I’m done paying next year Will this lower my score? I see the last one.
excellent
I payed my credit card off 20 days early and my credit score dropped 11 points....that's bull crap!
Actually you’re wrong about the collections . You’re better off not paying and waiting the 6 years for it to be removed because if you pay the collection agency you are brining the account back to active
Hard inquires stay for up to 24 months.
I have a hard inquiry on my account still from 2011. I just pulled my report from credit Karma and the hard inquiry is still there 9 years later. Do they not dissapear after a while?
They are suppose to come off at the two year after the initial hard pull
I’m 21, I work as a security officer it’s been 4 months since I opened a credit card from Bank of America. I’m just trying to build credit to finance a new car. :) Don’t know how long that will take to build credit. But guess I’ll keep trying. :)
I'm doing the same thing with be same bank. They say that 6 months is enough time for your score to calculate.
I have a question about my credit card score cuz it drop from 12points and i really dont understand why.. i called the transunion about that but they telling me that may both credit cards is stop using since september-october this year which is not true and we always pay on time, sometime ahead of time before the due date. So i called both my credit cards company and they told me that they always report every transaction we do every month. So when i try to call back again to the transunion it comes out that the reason why my points drop because how long i used my credit cards since i apply in until now. So my question is that it is really possible that they gonna drop my score because of the shorter period of having my credit card? Are they gonna do that again to me? Even though i pay on time?
Intelligent and beautiful. Thank you, you really helped me I'm on a mission to raise my credit score.
I did use the services of a programmer called Michael Gibbs from Credit Patch Up LLC to get rid of bankruptcies and hard inquiries off my credit report and my score was also boosted to 790+ within few days. You can get to him via [Gibbs@creditPatchup.com] if you're in need of any credit help or advice.
My Credit Utilization went from 37% to 24% with a 10k primary tradeline, yet my credit scores went down an average of 10 points. This is not one of your 7 reasons. What do you think happened here?
is it worse to have 1 $10k collection or 9 $1k collection. I would owe less with the 9 $1k collections, would this be a little better?
Wish I didn’t close and lower credit limit on cards. Ran into this video too late but still good know.
Glad you found it! Better late than never, right!?
how come my credit score dropped does it have anything to do with the credit card company reports to the credit bureau sometimes reports a zero balance sometimes reports a balance I am guessing that’s what could be the problem have to leave a balance, or leave a zero balance to be reported to the credit bureauwhat is your thoughts?
MissBeHelpful, my credit score dropped 26 points because an account was removed without my knowledge, and it was a positive account. Why would that happen? I have my house and car and want to purchase an investment property, but now... 💥💣🤯
Your impersonations crack me up.
Haha! Thanks for watching and commenting!
Hey girl, I have a question about utilization... My score went down because my balance went from $5 to $31. Literally a $26 difference... Mind you I’m using less than 5% of my credit limit... How does this work? In the video you said we should be using less than 10% which I am so I don’t know why my score went down. This is my first credit card ever and it’s a student credit card (I’m 19 in college) so this is all new to me
The same thing happened to me. I believe it's due to you not paying off the amount. When I paid my card off I never had my points reduced. Pay off your card three days before your due date and your points will go up.
I got two new credit cards , within two months i had 805 then went down to 789 would that do it? Or the economy would do it ?
New subbie here 🤗
Does transferring your money from one account to another in a different bank hurt ypur credit?
Edit:
Thanks for the video
You have to love her I like the way she explained everything she’s a love love you girl so beautiful
i applied for a credit card to help improve my already fair credit score because I am young and this is my first card but I have loans with no late payments and then it dropped!!
So i have 4 credit cards but i mostly use 2. Would it be bad not to use the other 2 so much?? Would it affect my score?
As long as the utilization is below 30% or even better if your 10% or below is excellent. Only using 2 of the 4 cards is fine if they benefit you however if the other cards aren’t used for maybe 1-2 years then it’s possible that the accounts could be closed due to inactivity. I believe if you use those cards maybe once every 6 months then the account will remain open. Just make a small purchase and pay off instantly. If they do close due to inactivity your total credit limit will drop and that will make your credit utilization appear higher. This can vary depending on the credit limits of the cards That’s one negative. The second negative is that the average years of credit will disappear if closed. This drop varies could be big or small depending how long you’ve had those cards. Hope this helped.
I never made a late payment I was always on time but so they asked me did I want to upgrade so I put yes My credit score was 708 it drop down to 629
It was probably a hard inquiry and if they closed the old card to open you up a new one then it was a closed account too so double the pain.
My utilization went to zero and a hard pull came off my report , and my score dropped... I'm confused 🤔🤔🤔
The same thing happened to me
You don’t want zero utilization. 1%-7% is ideal.
The last one I call it a trap and BS from lenders😒😂 😂
she is so pretty and has a great financial mind.
my credit score dropped 39 points for lost or stolen credit card, i had another card issued because of a high risk company i dealt with. how long will this affect my score.
Prob gone now, right!? LOL
I opened an account with PayPal and I received a $500.00 credit limit . Two day after opening my account I decided to buy a watch .. total $218.00 dollars( 6 months to pay)...Within a week my credit score dropped 30 points!. I was very surprised! I contacted PayPal and they stated they don’t report to the Credit agency’s for 3 more weeks!. In factPayPal haven’t created a Minimum due on my account!.... I thought this was odd!. So I decided to pay my balance off!. . I am wondering if this is common place???? I don’t know if I should use this account again? . I would Appreciate anyone’s feedback Thank you! Ps PayPal Now reports to the credit agency’s!.
Some accounts will appear on your FICO report whether they were sent to the bureaus or not! But even if you waited to pay it off you would have seen the same credit increase after your payment!
Any chance I can message you privately? My credit dropped 5 points but I follow all of your advice. Not sure if mistakes can happen with this
Sure email me if you didn't already!
Paying collectors does not help your credit score from what I've reserched. If you do pay them it still remains on your report as a derogatory for 7 years. Never pay collectors!!
Pay for full delete ONLY that helps!
i can watch her all day.
Wrong! Inquires stay on your report for two years
Make a Twitter. Best platform there is.
Good tip! Thanks!
wow, i’m only 20 and wish i would’ve seen this video or knew about this info back then before i went into the adult world ://
So your score goes up when you take out (and successfully manage) a loan, but your score drops when you pay it back? How can that benefit you long term? You have to keep taking out loans? Loans charge crazy interest and I hear that some charge you the full interest even if you pay it back early. Please elaborate.
Just subscribed, btw. This was super helpful.
Great point. As long as you have ONE loan or credit card on your record then that is all you need. When you want to get a house they will care about your credit score, so you just want to have a score there that is good. No need to keep taking loans out.
I’m worried about spend 30% of it or less
That's a hard one for sure! Best to keep under 10% actually!!!
What did you study in college?
ART HISTORY LOLOL
If you are going to use credit cards or manage money responsibly, it is important to have some good math skills.
❤❤❤❤
Does credit limit increase request reduce my credit score
It could slightly due to some creditors may give you a hard pull when you request an increase. The positive though is that because you have a higher limit, you’ll have a lower credit utilization which can improve your score. This however is if you keep your spending the same and don’t purchase more due to having a higher limit. Below 30% is good however being 10% or lower will keep you in good standing.
So basically put yourself in a bunch of debt but just be responsible with it.
Not a bunch. Just a little bit will be enough to have a credit score and then getting a house will be mush cheaper and easier later in life!
wish i watched earlier. paid off all of my debt I closed an Account with Ashley home store. score dropped 40 points 😡😨😢🤬
Credit karma is saying my hard inquiries last for two years is this true?! I’m planning on moving soon and don’t want too many hard inquiries from renters checking my score 😭
Inquiries stay on your report for two years but they only affect your FICO score for a year.
Correct!
Bruh! I literally PAID OFF ALL MY DEBT including student loans and my credit score dropped from 616-584! Like bruh!!! Why!!!
Yup it's right there in number 7 at the 12:34 mark. Sorry man! It will go back up really soon though!
@@missbehelpful yeah... some of the guys i work with say that it happens.. and to just keep paying my credit cards and keep the line of credit open... but this is a very insightful video..
no way keeping a bad credit deal like credit one 75 annual fees, 8+ dollars month fee for 300 CL. having too many cards with fees doesn't help you. you giving away free money to the banks.
You're so beautiful! Nice vlog!
My score took a hit this weekend after getting 6 inquirers when applying for a car! 😕
C0397 it could be worse mine was pulled 15 times and I wasn’t aware till after the fact
I think you can call and see if they will remove some of them because you were shopping around for the best deal. Might work and it can't hurt to try! I know it works with home mortgages.
Would I call the credit company or banks that denied?
Basically penalised for spending
i love her, she's cute!
I have 2 credit cards my score was 733 but 2-3 weeks ago I bought a car then my credit drop down to 678😬... will it go back up or ?? I don’t know what to do!!! PLEASE someone reply
What is your average age of credit before you got your car loan
Sometimes when you buy a car they make a lot of hard inquires about your credit to get you a loan. This is what happened to my husband. I do think over time your credit will increase. Just pay on time and make sure you don't get more hard inquires.
I closed a dead credit card. That’s it. My score went from 803 to 760. All debts paid. One credit card (revolving) always on time.
Closing a dead credit card hurt my score? I have no debt!!
Was that card one of your oldest credit accounts? The length of your credit is determined by your oldest account.
@@jakerickytan1232 YUP!
Same as them closing the account on you - you closed the account which removed it from your active accounts, lowered your age of credit AND decreased your amount of credit available to you which prob made your utilization higher. Ugh! Sorry!