There are several reasons for your credit score to suddenly drop and you might not even realize it. That is why it is very important to monitor your credit report. Make sure the items on your credit report are accurate.

Hard Inquiries– If you go into a car dealership and apply for a car loan, several hard inquires will done on your behalf. One or two hard inquiries on your credit is fine. But a car dealerships tend to run several hard inquires to get you the best deal. This will drop your credit score substantially. If you talk to more than one lender about a mortgage loan for a home, it will drop your score only a few points.

Closed Credit Card– If you decide to pay off one of your credit cards, get the creditor to agree to change your status to “paid as agreed” before you pay it off. Do not close the account, because  closing the account will change the amount of money you can borrow and it will cause your score to drop.

Late or missed payments–Your payment history is a great factor in your credit score. Make sure to pay your bills on time or set up automated payments from your checking accounting. Missed and late payments will drop your score and keep it there for several years. These items can stay on your report for up to 7 years.

Collections –Try to keep your accounts out of collections. This will drop your credit score and make lenders, loan officers, and credit card companies hesitant to work with you.

Inaccurate Informationn–Inaccurate information can drop score. This can include accounts you never had, payments you did not miss, and credit inquiries that you did not request.

Identity Theft-If your information has been stolen and someone is using it to make purchases that you have not authorized, your credit score can drop and it can take a long time to fix it.

Call Real Estate By Jane for a complimentary review of your credit. Make sure everything on your credit report is accurate. I have credit issues in the past. Therefore I do not judge those who are having credit issues. This can happen to anyone. 703-606-7963

 

 

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