Credit Score Drop
Yesterday I nearly fell off my chair when I checked my FICO score through my credit card website. This website continuously monitors and updates their client’s FICO score thru Transunion so monthly I get to see my credit score.
When I saw that my FICO score has been updated for April 2008, I nervously clicked the link but I was so shocked when I saw that my score, which was really excellent, dropped about 97 points! I was really upset about it that I hastily enrolled to a credit score monitoring site to give me an idea on how bad my credit scores are now and how I can prevent it from going down even more.
Through that credit monitoring site, I learned that credit scores drop due to a number of reasons. One reason is that when we apply for too many credit loans in a certain period of time. This, of course, would also result to too many inquiries in our credit because everytime we apply for credit card, auto refinancing, home refinancing, the creditor makes an inquiry about our credit. Even applying for an apartment lease gives them a reason to pull up our credit. Another reason that credit scores drop is when we have high balances in our loans.
The reasons mentioned above were the exact reasons why my credit score plummeted. It was entirely my fault because I became reckless with applying for loans. I didn’t know before that these things will make my credit suffer. I was not “credit-savvy” since I am newbie in this credit score stuff.
I am very unhappy with what happened to my score but what else can I do but to be calm and learn from this mistake. Anyway, there is still time to repair the damage done to my credit and pretty soon, maybe about three months, I will have an excellent credit score again.
So to my friends who are new to the USA, be very careful when you apply for credit. Whatever it is, if it’s not that urgent , don’t apply for it. 