Proof of Credit Score Drop due to closing an account and paying off credit cards…go figure…

It has been amazing the changes in our credit cards and what happens with each move we make to our credit score. In the last 45 days our credit scores have gone down 18 points and bounced back up 20 points. Let me give you some background info. In Dec, Citigroup decided to close our card, which they had dropped the available credit limit by 60% last year, now they were closing the card all together. So we had been with them for say 6-7 years, never paid late, but we never used this card for everyday purchases, only 0% deals. With so much good credit history and it being revolving credit it did good things for our credit score, but when they closed our account, our credit score went with it. We lost that credit history and our average length of account went down. Also the number of accounts went down. Then we did some moving around of finances and shifted some stuff to pay off a 0% card that was coming due. Go figure so we saw a 15-20 drop in less than 30 days, then turned around and it bounced back somewhat because we shifted money. So lessons learned, be aware of where your credit is, especially if you are going to making a big purchase and will be financing it, timing could be everything. Also use the stimulators and report card that they offer at creditkarma.com, they are free and very interesting to run scenarios as to what will happen to your credit if you do this and do that. If you have problems navigating through those or have questions, don’t hesitate to contact me and I can help you work through whatever it is you want to accomplish.

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~ by debt2dreams on February 11, 2010.

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