Why is my fico score going down
Why Did My Credit Score Drop for No Reason
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so your credit score dropped and it
looks like it was for no apparent reason
i'm gonna tell you why i dropped coming
up
hey everyone if you've been trying to
work on your credit and you have barely
been seeing
any results you need to go ahead and
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credit the mistakes people make when
writing dispute letters
why you shouldn't only dispute with the
credit bureaus and also the accounts
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not to mention you'll get to see real
results from a customer who use my
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so go ahead and sign up for that
training today the link is gonna be down
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and while you're trying to work on your
credit you have to see all three of your
credit reports and scores and
my score iq a company that i use for
myself and for all of my customers has a
one dollar
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hey everybody will fraser here your
credit expert bring you the tips you
need to get your credit back
on track because what goes down must
come up and if you don't want your
credit score to drop 300 points make
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like this
so you've been looking at credit karma
or wherever else you check your credit
and you notice that your credit score
just dropped all of a sudden and you
didn't do anything so you don't really
know
what happened or what could have caused
your score to drop the way it did
and i can tell you in some instances it
can be easy to tell
but in other instances it might be very
hard and you may have to do
quite a bit of digging just to see what
it was that happened so because of that
i can tell you that the best way to
usually try to identify
what it is that caused your score to
drop is going to be to have
some type of company that monitors your
credit where you can actually
go back and look at a pass report over
the past few days
i know on credit karma it does give you
an option where you can kind of see
if something changed with your score it
may tell you you know what
account changed around the time so that
makes it a little bit
easy for you but the problem with them
is they don't show you all three
credit bureaus so there may be some
missing information out there that you
won't get to see
but i know on my score iq they actually
give you the option where you can
see your current credit report and then
you can hit a drop down and it'll show
you
your last month's credit reports you can
kind of compare the two
and see what may have changed but
however you're looking at and monitoring
your credit is going to be important to
identifying what happened between one
month to the next month or one week to
the next week
to kind of see what changed and see what
caused your credit score
to drop but before you even do all of
that digging
i'm gonna go ahead and let you know of
at least three things that i know
are most common when people see that
drop in their credit score
and it looks like it just happened out
of nowhere so the very first thing
that most people are seeing a credit
score drop from and especially now
during the holidays
is usually because you have a credit
card that is open
and you went and you spent some money
not thinking about it or it could be
that you paid a bill with a credit card
or something different like that maybe
gas food
but either way it goes you use your
credit card and not thinking about it
and how it would affect your credit
score based on when it gets reported
you may have increased your credit
utilization which can fluctuate
very dramatically on credit cards with
lower credit limits like 300
or 500 dollars so you can spend you know
like a hundred dollars or so
and in some instances 50 dollars and it
can take your credit utilization to a
point where it can dramatically
drop your credit score now you know you
just made the purchase
and then a month later you just see your
score drop at that point you didn't do
anything
in that current month so you don't think
anything that you did caused it but
in reality it's probably because you use
your credit card for something
now the second thing that usually
happens that causes the credit score to
drop
without people even knowing that they
did it is them actually
paying off a loan whether it be a
personal loan
or a car loan or something like that
paying off
any loan drops your credit score and if
you haven't looked at your credit report
for month to month
you've probably never seen this but if
you ever pay off a loan or a car
go and look at your credit report at
least 30 days after and i can almost
guarantee you that
if you had nothing else to change on
your credit report
during that same time frame and you see
that that's the only change you'll be
able to identify
very easily that that was the the item
that actually caused your credit score
to drop
and most people don't know that paying
off loans drops their credit score which
causes more confusion
of course you think when you're paying
off a loan you're doing a good thing and
you are because you're paying something
off
and you no longer have a payment on that
but that action
actually the action of that account
closing is what causes your credit score
to drop
now what is the third thing that usually
happens that causes people's credit
scores to drop
that's going to be an account closing
that was previously reported as
open now sometimes this can be that you
have an old account
that you may have paid off and it may
have been a while ago but on your credit
report because there are always a bunch
of errors on people's credit reports
may still be showing up as open and
let's say that you started disputing
some other accounts
uh and maybe that account is one of them
and then that account was one that was
still marked as open so it wasn't
hurting you like it should have
but then all of a sudden they go ahead
and market his clothes not a few sense
of dispute
or maybe it's just out the blue that
they randomly updated their records
that they report and then it ends up
getting reported as closed
that closure of whatever the loan is or
credit card
can actually cause your credit score to
drop and of course that is definitely
something that you wouldn't have been
thinking of
because every time you pay off an
account i'm sure you already think that
the effect of that
has hit your credit report but a lot of
times like i said it's a lot of errors
on people's credit reports
usually caused by the credit bureaus not
monitoring
and regulating the stuff on their credit
reports and also because the creditor
may have just been late in reporting the
information now if you've seen
anything like the three things i just
mentioned happen to you on your credit
report
go ahead and talk about it in the
comment and i'm also gonna go ahead and
give you two bonus things
that may cause your credit score to drop
that you may or may not be aware of when
they happen
now this first one a late payment
showing up on your credit report
now that is more likely that you would
know that you were late
on a credit report but if you weren't
thinking about it and it got reported a
little bit later after it happened
then of course you know that late
payment may hit your credit report
it may drop your score tremendously and
then once you do see it
then you know you'll remember what
happened so that one won't usually catch
people off guard too bad
but sometimes it can be a collection
company that hits your credit report
and then you all of a sudden you know
see your score drop
and you weren't thinking about a
collection it could be you know from a
medical bill
that you thought would have been a
covered item it could be a copay a lab
or something like that
you never got anything in the mail about
it and then it just hits your credit
report
drops your score and you're like you
know what's going on what happened and
then you got to go through your credit
report to see that a new collection was
added on your credit report
and that's what caused your score to
drop i actually see a lot of people get
caught off guard by this one
and it can be medical bills or any type
of collection account
but usually like i said they can catch
people off guard because you're just not
expecting the timing of it to happen
and i'm gonna throw one extra thing in
there also
if you have been getting to the point
where you're close to being late on your
credit account 30 days late i'm talking
about but you're not at the 30-day mark
yet what you may see
is in the past due column which usually
shows up as zero
on an open account once you've gotten
past the due date for that credit card
or whatever you're gonna see that after
you get
a certain amount of days past that
payment due date
that a pass due amount will show up on a
certain column
in that account on your credit report
and then you will see your score drop
now that drop is a temporary drop it is
not as bad as a 30-day late
payment and as soon as you go ahead and
pay the account that pass due amount
we'll go back to zero and then you'll
see that score change
go in reverse but again you may see your
score drop not thinking about it because
you may know
yeah i'm not 30 days late so it should
be a late payment
but you're not thinking about the fact
that you're beyond the due date of your
credit card payment
so you'll end up seeing that effect not
knowing what's going on
and you know then you'll see it go away
and then of course it's just confusing
because you don't know what happened
but that is another thing that can
happen and cause your credit score to
drop without you knowing what's going on
and just leaving you confused so i hope
this information was helpful
and getting you guys some insight on
what can cause a score to drop
that most people wouldn't think of or
wouldn't know to look for so
hopefully this helps you thank you for
sticking around to the end of the video
i'll see you guys next time
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