Credit Tips: Credit Score Fluctuation

Posted On: April 1, 2006

Author: rsr
Posted: Sat Jul 02, 2005 10:38 am
Post subject: Changes in credit score

Why does my credit score fluctuate from month to month? I have a fairly high credit score but I would be happier if it would stabilize. In October, 2004 it was 789, in January, 2005 it was 781, in April, 2005 it was 781, and now this month it has dropped again to 772. I have 13 accounts listed but only 2 that carry balances and two others that are used from time to time. One is a car note, one is a credit card with a high balance but it is not even close to the limit (12,000 balance-32,000 limit) and any other card I use is paid off each month. I never miss payments and always pay more than the minimum. So my question is, why does my score keep going down?

Author: Polonius
Posted: Sat Jul 02, 2005 11:09 am
Post subject: Credit Score Fluctuation

The variations in your scores are negligible. Based on what you said, the key is likely this part:
Quote:
any other card I use is paid off each month
Even if those cards are paid in full each month, the statement balance is going to vary each month. Those numbers are used to figure out your credit utilization percentages, both per card and overall.

Your scores are so high that the differences that worry you won’t change your prospects for obtaining new credit. Don’t worry about those minute changes.