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That's what did it..the CC's coming OFF.
I don't quite understand it either..pay off a loan (I did that) and you get a drop in score.
I can only assume that over the years credit score has morphed into how much "debt" you carry.
I'm down to one CC that I pay off each month and 1 mortgage. About 2 years ago I refinanced to a lower rate and saw my score. Thought it would have been higher seeing I have little debt, solid payment history and good net worth. The loan officer at my CU explained that my one CC that got paid off every month wasn't really "carrying debt". But the officer did say that credit score was only one part and that my savings and other assets played a bigger part than the number itself.
I wouldn't worry too much .... these days cash talks as well as a solid history of payments.
"I can only assume that over the years credit score has morphed into how much "debt" you carry."
Yes, and this it the main reason I hate the FICO system. FICO is designed to keep people in perpetual debt by either carrying debt or making you pay more for new debt because you didn't have any debt.
The OP paniced when their FICO dropped 10 point. 10 points already!! For crying out loud you'd think the world would end but all it means it that the OP now has less debt for the banks to feed on so they will "Punish" the OP for daring to be a little less in debt.
Give me a fricking break here!!
Is that how brain washed people have become that they let the banks decide how much debt they carry? I can't imagine what life is like for the debt free. Do they sleep well at night? You bet they do!!!
"I can only assume that over the years credit score has morphed into how much "debt" you carry."
Yes, and this it the main reason I hate the FICO system. FICO is designed to keep people in perpetual debt by either carrying debt or making you pay more for new debt because you didn't have any debt.
The OP paniced when their FICO dropped 10 point. 10 points already!! For crying out loud you'd think the world would end but all it means it that the OP now has less debt for the banks to feed on so they will "Punish" the OP for daring to be a little less in debt.
Give me a fricking break here!!
Is that how brain washed people have become that they let the banks decide how much debt they carry? I can't imagine what life is like for the debt free. Do they sleep well at night? You bet they do!!!
Oh please. Statements like these are why some posters on this forum have minimal credibility. Only a drama queen (or king) would characterize the OP as panicking. He simply asked a question that was puzzling him, and now he's panicking and brain-washed? And it was 100 points not 10.
Calling people brainwashed? You know the saying about pointing fingers . . .
One would think their FICO would increase 10 points when a debt is paid off and comes off the score.
Plus less CC's on the FICO should be a GOOD thing, not bad.
I dunno..it's just crazy. But I don't worry about it..I manage my finances to stay OUT of debt and haven't had a problem with any big ticket purchases.
Oh please. Statements like these are why some posters on this forum have minimal credibility. Only a drama queen (or king) would characterize the OP as panicking. He simply asked a question that was puzzling him, and now he's panicking and brain-washed? And it was 100 points not 10.
Calling people brainwashed? You know the saying about pointing fingers . . .
"I can only assume that over the years credit score has morphed into how much "debt" you carry."
Yes, and this it the main reason I hate the FICO system. FICO is designed to keep people in perpetual debt by either carrying debt or making you pay more for new debt because you didn't have any debt.
The OP paniced when their FICO dropped 10 point. 10 points already!! For crying out loud you'd think the world would end but all it means it that the OP now has less debt for the banks to feed on so they will "Punish" the OP for daring to be a little less in debt.
Give me a fricking break here!!
Is that how brain washed people have become that they let the banks decide how much debt they carry? I can't imagine what life is like for the debt free. Do they sleep well at night? You bet they do!!!
I am the OP (I guess) and it dropped 90 points from 780 to 690 not the 10 you state.
I didn't panic I never plan to use credit again. Everything is paid off, kids are grown and gone, retirement is set and I plan to live the rest of my life without borrowing a dime. Ever.
A credit score that was "in the high 700s" is a good thing, as it afford you the opportunity to borrow at the lowest rate.
A score in the 600s could mean significantly higher rates, as well as some lenders thar just will not work with you.
What I suspect has happened is not "just that some unused credit cards have expired" but that the OP has unintentionally reduced the total amount of credit they have available, made it appear that they use much more of their avsiable credit, and possibly reduced both the highest amount they may have borrowed in their active credit file AND the length of credit history.
Each of the above points effectively makes them appears to be a worse risk.
While if "they never plan on using credit again" this may not matter, but even when I have money in the bank there are many times when i choose to use financing, even for just a 'what if' so it may be prudent to use a little forethought when choosing which accounts to close / keep...
My credit score was always in the high 700's but doing my annual check I find it is down to 690!
Nothing changed other than allowing unused credit cards to expire.
What is up with this?
Your credit score is a alchemical equation of babble designed to confound you.
However there are a few very important things you need to know to maintain a high credit score.
You must maintain a balance of 10% to 20% of the credit card's limit at all times. If you fail to do so, you will be penalized. If your balance exceeds 20% of your card limit you will be penalized, and the higher the percentage the more the penalty hurts.
This creates a problem because some lenders, like Crapital One refuse to report the credit limits. I believe someone was attempting to sue them under the FCRA or some other law but I never followed the case or followed up to see the outcome (if any).
The age of the cards is incredibly important. The more older cards you have the higher your score goes. When you let those cards lapse, you lost a lot of the age of your credit report.
This creates a paradox because when you have a collection account, it will initially hurt your credit score but after several years it has no effect, and the a year later it actually boosts your credit score, and then you either pay off the old collection (stupid) or it "falls off" after 7 1/2 years and your score drops 10 to 80 points depending on the amount of the collection.
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I don't agree...
