Author Topic: Drastic Credit Score Climbs and Drops  (Read 5054 times)

105082

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Drastic Credit Score Climbs and Drops
« on: May 01, 2015, 06:36:15 PM »
What makes a credit score drop / climb over 150 points? (See attached image).

I found a note where the borrowers credit went up 150 points, then dropped 150 points in just a few months. What would cause such drastic score changes? The loan has never been late and the borrower continues to make payments on time. Is he not paying for other loans, applying for huge loans, ect? Trying to understand what could is going on, and if this is a bad sign.

Thanks

kya

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Re: Drastic Credit Score Climbs and Drops
« Reply #1 on: May 01, 2015, 11:03:44 PM »
the fall almost has to be some sort of repo or foreclosure

LoanShark

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Re: Drastic Credit Score Climbs and Drops
« Reply #2 on: May 02, 2015, 02:14:47 PM »
If the fall was a repo, than why did the score rise first?

My guess is that your debtor paid off his credit cards, and his utilization dropped from 90% to 0%.  Then your debtor racked up credit card debt again, getting right back to where he used to be.'

He probably promised he was going to use YOUR LOAN for credit card payoff.  Look where that got him.
« Last Edit: May 02, 2015, 02:17:18 PM by LoanShark »

lchoncho

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Re: Drastic Credit Score Climbs and Drops
« Reply #3 on: May 02, 2015, 02:31:30 PM »
Borrower has an account in collections/charged off. He lodged a dispute with the credit reporting agency, negative info was briefly removed. Creditor then verified the negative account, or account was sold to a different collection agency, went back on the report, and score dropped.

Fred

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Re: Drastic Credit Score Climbs and Drops
« Reply #4 on: May 04, 2015, 06:22:47 AM »
2 of the largest contributing factors on credit score are "on-time payments" (35%) and "capacity used" (30%):

http://en.wikipedia.org/wiki/Credit_score_in_the_United_States



You can increase/decrease your credit score by paying on time, and reducing your debt.

Your borrower might exactly did this -- paying off loan on-time initially, but then slacking off again.
« Last Edit: May 04, 2015, 07:02:00 AM by Fred »

Prescott

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Re: Drastic Credit Score Climbs and Drops
« Reply #5 on: May 04, 2015, 03:25:44 PM »
Borrower has an account in collections/charged off. He lodged a dispute with the credit reporting agency, negative info was briefly removed. Creditor then verified the negative account, or account was sold to a different collection agency, went back on the report, and score dropped.


This would be my guess.