So, I have pretty good credit. Never defaulted on a loan, missed a payment or anything else negative. Ever. I only have 1 credit card (apparently this is a bad thing?) and pay it off every month. Credit score slowly climbed just over 800 last month. Got an email today that my credit score dropped. Out of curiosity I checked and it went down 14 points and I have no idea why. Nothing has changed other then getting closer to paying off the wife's car. I use Credit Karma and it showed 3 "reasons" my score may have changed. All of them were positive, spent less on my credit card last month, paid down car and home loans.......... I just don't get it, the fact credit scores are used for all kinds of things other then loans, and they can go up or down for no real reason. I just think there should be an easier less random way.

/rant off

    Dufferman Same here. Got close to 800 and doing the same as you; pay every month. Then for a couple months I let it ride, making min. payments on all of them; they went up some. The next month, I paid them all off and did not put anything on them, just to see what would happen. Dropped 39 points!

    I think the only one that really counts for anything is your 'Vantage' score, which your bank would have/use.

      Dufferman Credit score slowly climbed just over 800 last month. Got an email today that my credit score dropped. Out of curiosity I checked and it went down 14 points and I have no idea why.

      The same happened to me but it was on my FICO score that dropped 23 points down to 797 a month ago. Experian could give me no reason period - zero balances on every revolving line of credit, zero inquiries of any kind - 0% utilization rate on my 3 cards (one personal, one joint with my wife, and one business), car loans with one of them 2 months from paid off...My weakness is my average length of credit is "only" 9 years and that's because scores of years with carrying a mortgage (paid off in full with no late payments) eventually dropped off my record dropping my average length of time of having credit. Crazy.

      My Vantage scores have held steady without any change up/down for months. Just the FICO.

      Unfortunately, banks and insurance companies DO use the scores in setting interest rates offered to borrowers and in classifying risks for property and casualty lines of business. I'm also subject to background and credit checks every time I have to approach a new financial firm to be appointed to represent them so this topic is near and dear to my heart.

      A few years ago, the credit rating agencies adjusted their formulas that resulted in the vast majority of Americans getting a bump up in their scores. I wonder if the rating agencies are getting some pushback from their customers (creditors) to reel it in again?

      But almost every day, Credit.com and Credit Karma have a 'hot new card' that I'm pre-approved to receive. No thanks.

        I have no clue how they work the formula, but they were implemented to eliminate lending bias and ensure all potential borrowers were underwritten the same

        Remember, it is a "credit" score. Not a "financial wellness" score.

        The Man wants you using credit. Consistently. $0 balances are not credit score boosters. Using lots of credit, making payments on time, and having the means to pay it off makes The Man happy = good credit score.

          Sparky That is what I have noticed. If I had higher credit card usage, or more credit cards and charged more on them I think it would impact my score positively. Keeping a low credit usage and paying off in full every month is frowned upon I guess because the big banks aren't getting any interest payments.

          So, making poor financial decisions in regards to credit seem to give you a BOOST. Doing the smart thing is seen as bad for some reason.

              Dufferman I cannot like this enough! Lost all respect for the process when I didn't miss a car payment for the 5 year loan on a car - finally paid the thing off and my credit score dropped because of no more loan.

              Then I buy another car with a new loan and do a large charge on my credit card (paid off from a cash account when the statement was due) and it drops because I'm using too much of my credit limit.

              Thanks, now I'm grouchy lol

                Dufferman I am no expert but if my credit card usage runs higher one month then my score seems to drop the next. Example I'm thinking is if my normal credit card bill is $2k a month and I spend $4k one month then back to $2k.

                    PSA: Make sure you lock your credit.

                    My wife & I haven't been below 800 in over 20 years & today I'm at 801. All of our factors are excellent except that we don't have a mortgage or car payment, all we do is pay every damn bill on-time and pay-off CC balances monthly (treat our cards like American Express cards) unless we have a 4 figure balance then it's paid off in 2 months. 801 is still excellent but it's a matter of pride for me.

                    livegolf Maybe, who knows! I know when we have paid for a vacation or something I have never seen a double digit drop the next month just because of that. I only use the credit card for the cash back. I guess the added free money is worth the mysterious credit rating shenanigans.

                      I've never cared about my credit score. It used to be fantastic, from what I was told from various institutions who were selling me things or loaning me money, but I never cared to know what it actually was.

                      For me, there's enough things that I can control that I have my head filled with. This is one based on what I'm reading here I'm glad I don't have. It would drive me crazy to do the right things and know it was dropping. Since I don't know if it's rising or dropping I'm in the "ignorance is bliss" section on this category of life's concerns.

                        Toulon I'm in the "ignorance is bliss" section on this category of life's concerns.

                        They keep score?

                            I don't worry about the number, I've been close to perfect, and as low as low 700's during a rough stretch when I was carrying a lot of debt when separated. As long as the score is in the upper 700's, you are considered to have great credit. Banks shoot in ranges for rates

                            Went to purchase a new dining room table and chairs over the weekend at a local furniture store. The salesperson asked my method of payment, I told them cash money. No lie, he had to consult the manager to make sure they took cash. lol

                            If there’s one thing better than having a good credit score, it’s being in a position to not have to be concerned about it.

                            Glad that my wife and I learned some hard lessons about wasteful spending early on in life rather than later.

                            There are a lot of things overrated in life. Not having mortgage/car/credit card payments ain’t one of 'em.

                            I have no idea what my score is now but at one time it was 15 points from perfect. I think 850 or something is perfect and I was 835. Like others here I closed out a card I never use and it went down. I thought that was really weird.
                            I'm not planning on ever buying anything on credit again unless we move or buy a second home, and even then might pay cash depending on interest rates and what we get for our current house. I do use my CC to buy pretty much everything for the points and pay it off monthly.

                              garyt1957 Perfect now depends on which of the three you look at. FICO uses 900 now--of course, but Experian uses 850. My bank doesn't list a Vantage # for me, not sure what that is but they do list their own score for me when I had a credit card with them but closed that and my score event down.

                              I'm more like @bogeypro , a pride thing as I haven't applied for any loan in over 10 years and don't add cards--got to get a life. My FICO is 861, they show how this is measure by percentages but no actual data. My Citi card (use for air miles) states two reasons for change--too many credit accounts and fewer accounts--go figure.

                              Once I was 849 when they sued 850 now they bump it up.