4 ms·

I’ve done all of the things that all of the blogs suggest to keep a decent credit score, but my score is extremely volatile and bounces around in a 200 point ra

I’ve done all of the things that all of the blogs suggest to keep a decent credit score, but my score is extremely volatile and bounces around in a 200 point range month to month which never made sense to me, but every avenue of complaint fell flat. Then about three years ago I got a rejection letter that said one of the credit bureaus had me categorized as someone likely to run up a good score then bust it out (I forget the term they used) - no history of me doing this but apparently that’s my profile. So if I carry any balance on any card my score immediately drops 196 points, if I pay it off the next month my score jumps 196 points. That sawtooth pattern has been the norm for about a decade. That doesn’t match up with anything that I’ve read about so it seems the credit bureaus actually have a specific policy just for me. Maybe I’m living in the wrong neighborhood, or maybe I’m guilty by association with somebody, who really knows. It doesn’t really stop me from doing anything, if I want a new credit line I just wait until the month when my score is up 196 points, but it might be a problem if I was ever in a situation where I could not wait 8 weeks - like if I’m buying a house or need a car.

s1artibartfast 4y ago
Really interesting. Mine has been withing 5 or ten points for 10 years across many zipcodes. The only exception was when I let a bill go to collections and it dropped ~30 pts and slowly recover over a year. Could it have to do with your % credit utilization when you leave a run a balance. If you up your CC limit to 20x your balance, your issue may go away.
- zxcvbn4038 4y ago
  You are supposed to be ok as long as you don’t use more then 30%.
  - s1artibartfast 4y ago
    That's not my understanding.[1,2] Utilization under 30% still hurts your score. Utilization % and type of credit utilized account for 40% of your score [3]. Given the big transient swings timed to match exactly with your utilization, this is all that could imagine is going on. Seems like an zero cost solution you could try. If you have a decent job, it is pretty easy to get large amounts of credit up to a couple hundred k. The average person with an 800+ score has <5% utilization, so aim for that when you run a balance. >https://www.nerdwallet.com/article/finance/30-percent-ideal-credit-utilization-ratio-rule https://www.nerdwallet.com/article/finance/30-percent-ideal-.... >https://wallethub.com/answers/cc/best-credit-utilization-ratio-2140666075/ https://wallethub.com/answers/cc/best-credit-utilization-rat... >https://www.investopedia.com/financial-edge/1111/what-credit-score-should-you-have.aspx https://www.investopedia.com/financial-edge/1111/what-credit...
    - positr0n 4y ago
      > Utilization under 30% still hurts your score I don't think this is right, and your first supporting link directly refutes that in the second sentence.
      - s1artibartfast 4y ago
        how so? seems clearly the opposite to me. >Many credit experts say you should keep your credit utilization ratio — the percentage of your total credit that you use — below 30% to maintain a good or excellent credit score. Credit utilization is a major factor in your credit score, so it pays to keep an eye on it. View the 30% rule as a good guideline, but be aware that using even less is better for your score.
        positr0n 4y ago
        Yes using less is better. That's what I'm saying.

s1artibartfast 4y ago

Really interesting. Mine has been withing 5 or ten points for 10 years across many zipcodes. The only exception was when I let a bill go to collections and it dropped ~30 pts and slowly recover over a year. Could it have to do with your % credit utilization when you leave a run a balance. If you up your CC limit to 20x your balance, your issue may go away.

zxcvbn4038 4y ago
You are supposed to be ok as long as you don’t use more then 30%.
- s1artibartfast 4y ago
  That's not my understanding.[1,2] Utilization under 30% still hurts your score. Utilization % and type of credit utilized account for 40% of your score [3]. Given the big transient swings timed to match exactly with your utilization, this is all that could imagine is going on. Seems like an zero cost solution you could try. If you have a decent job, it is pretty easy to get large amounts of credit up to a couple hundred k. The average person with an 800+ score has <5% utilization, so aim for that when you run a balance. >https://www.nerdwallet.com/article/finance/30-percent-ideal-credit-utilization-ratio-rule https://www.nerdwallet.com/article/finance/30-percent-ideal-.... >https://wallethub.com/answers/cc/best-credit-utilization-ratio-2140666075/ https://wallethub.com/answers/cc/best-credit-utilization-rat... >https://www.investopedia.com/financial-edge/1111/what-credit-score-should-you-have.aspx https://www.investopedia.com/financial-edge/1111/what-credit...
  - positr0n 4y ago
    > Utilization under 30% still hurts your score I don't think this is right, and your first supporting link directly refutes that in the second sentence.
    - s1artibartfast 4y ago
      how so? seems clearly the opposite to me. >Many credit experts say you should keep your credit utilization ratio — the percentage of your total credit that you use — below 30% to maintain a good or excellent credit score. Credit utilization is a major factor in your credit score, so it pays to keep an eye on it. View the 30% rule as a good guideline, but be aware that using even less is better for your score.
      - positr0n 4y ago
        Yes using less is better. That's what I'm saying.