How I can improve our credit Score?

[justAply]

Why did my credit score drop by 32 points without any reason?

[bjl584]

I don't know.

Can you provide more info?
What is your score? How much debt do you have? Have you made any recent purchases or paid off any debts recently?

[justAply]

My credit Score is 550 and there is no debt remaining but I had purchased a gadget a few months back.

[bjl584]

My credit Score is 550 and there is no debt remaining but I had purchased a gadget a few months back.

Define "gadget."

550 is a bad score.
Can you provide some insight into how you arrived at this situation?

[snafu]

FICO Factors

The target number is 780. You lose points if you have no active credit cards functioning. You build points with a long term credit history, 30% utilization of credit limit as the 'sweet spot.' Operating/rotating 3 cards seem ideal, keep utilization or each just below 30%. For example, should your preferred card build to 30% of it's credit limit, activate CC #2. If you can track spending, and due dates, rotate through 3 active cards to increase your score.

Lenders points increase for variation in borrowing like CC, Auto loan, Student Loan, Mortgage for example. If you can keep all the balls bouncing you likely have a better change of negotiating a lower interest rate. [if you don't ask you don't get; arm yourself with a copy of lowest loan interest rates from SA]

Your past history of payment counts for 35% of FICO score. Pay on time, at least two business days in advance of due date seems ideal. Keep borrowing below 30% of annual income. It's your responsibility to make certain your information is correct .

Points drop significantly if you miss a payment date, balance is more than 30% of limit, transfer balances to other accounts, carry out credit settlement.

[rennigade]

Dont get hung up on credit scores...its a joke. The people I know who have better scores than I do are in worse financial shape than I am...it has very little meaning to me.

[disneysteve]

Dont get hung up on credit scores...its a joke. The people I know who have better scores than I do are in worse financial shape than I am...it has very little meaning to me.

Certainly it is true that your credit score doesn't accurately reflect your financial status, but I think it's incorrect to blow it off completely.

Credit scores do matter for a lot of reasons. I don't think you should jump through hoops or do anything complex to improve a low score, though. Just handle money properly and your score will get better. Pay your bills on time every month. Limit your borrowing. Don't exceed 20-30% of your credit card limit each month (if you use credit cards at all) and pay it off in full when the bill comes. Don't carry a balance.

[Fishindude77]

Dont get hung up on credit scores...its a joke. The people I know who have better scores than I do are in worse financial shape than I am...it has very little meaning to me.

My thoughts also.

[commoncentsmike]

My thoughts also.

There is part of me that agrees with this sentiment, however building/maintaining good credit is so easy it doesn't make sense NOT to have a high score.

[justAply]

Thank You, all of you for helping me, Now my Credit Score is improving it was just an installment which earlier I missed to pay on time.

[dczech09]

Your credit score would not drop so precipitously for no reason. Something happened that caused the drop.

If I were you, I would pull ALL three of my credit bureau reports (Experian, TransUnion, and Equifax). You can pull a credit report from each bureau for free every year. Visit www.annualcreditreport.com to do so.

Check your credit reports and make sure that you agree with everything on your report. Your creditors. Your credit status. Amounts borrowed. The whole nine yards.

If there is anything that is off...

• Like you do not remember having a credit card through Capitol One, as an example

or
If there is anything that is completely wrong...

• Like your credit report shows an account in collections, when you have paid on time every month

Then dispute the credit item to the bureau (you have the right to do so if anything is inaccurate).

Chances are there is a really bad "derogatory remark" on your credit report. "Derogatory remark" is simply a bad credit item like late payment, collections, judgment, charge off, etc. A remark that reflects poor credit history. My guess is there is a "derogatory remark" that is negatively affecting your credit score.

Whatever the cause for the drop in your credit score, it will show in your credit report. A 550 credit score is bad, and one does not get that low of a score for no reason. No credit score (literally a 0 credit score, like mine) is better than a 550.

Find out what caused your score to drop, and determine if it is accurate or inaccurate. If it is accurate, then sorry but there is not much you can do but let time cure it. If it is inaccurate, then you need to dispute it.

[dczech09]

Thank You, all of you for helping me, Now my Credit Score is improving it was just an installment which earlier I missed to pay on time.

Looks like my reply is a little too late.

Oh well, I still think I provided good information for others.

[Gailete]

Thank You, all of you for helping me, Now my Credit Score is improving it was just an installment which earlier I missed to pay on time.

I thought you had said in an earlier post that you had no remaining bills and now you say it was an installment loan that you hadn't paid on line. An installment loan, unless you paid it in full is a bill.

The thing is how can we help you work towards getting your score up? Whether a good credit score or not is not what is important, the fact that your score is so low tells me there is something wrong with your finances that perhaps we can help you with some advice at least if you care to share.

[justAply]

I thought you had said in an earlier post that you had no remaining bills and now you say it was an installment loan that you hadn't paid on line. An installment loan, unless you paid it in full is a bill.

The thing is how can we help you work towards getting your score up? Whether a good credit score or not is not what is important, the fact that your score is so low tells me there is something wrong with your finances that perhaps we can help you with some advice at least if you care to share.

I completely agree with you actually earlier I was not sure about it, I checked it later then I got to know about it, Sorry for the incomplete information