Credit score went down in one month.

NikhilSingh25

currently there is one credit card and one LAP on my name ,
I use cred for bill payments and today I decided to check what my credit score was ,
And shit it went down to 639, my credit score has never went this low,
last month on 24 march it was 762, how come it's 639 .
I didn't miss any EMI, there are no credit enquiries nothing.
How is that even possible that i lost 123 points in a month.
any suggestions what to do guys .

PunkX 75

This is Equifax. Check on another website that generates a free soft report on your Equifax score. Also, check your CIBIL score if that's the same (use GPay).

NikhilSingh25

The report I got from cred was from Experian, checked with Equifax it shows my score is 680.
And Gpay won't let me refresh for another 8 days but it shows 765 of previous month.

PunkX 75 said:
This is Equifax. Check on another website that generates a free soft report on your Equifax score. Also, check your CIBIL score if that's the same (use GPay).

vishal_k

NikhilSingh25 said:
The report I got from cred was from Experian, checked with Equifax it shows my score is 680.
And Gpay won't let me refresh for another 8 days but it shows 765 of previous month.

What's your usage percentage of your credit limit?
Also do you pay your credit cards monthly bill in full or just minimum due?

NikhilSingh25

vishal_k said:
What's your usage percentage of your credit limit?
Also do you pay your credit cards monthly bill in full or just minimum due?

Minimum due . So you can say 100%

NikhilSingh25 said:
Minimum due . So you can say 100%

But it's been like this since August, I pay minimum every month and my credit score in August was below 750 , it had increased till last month .

vishal_k

NikhilSingh25 said:
Minimum due . So you can say 100%

But it's been like this since August, I pay minimum every month and my credit score in August was below 750 , it had increased till last month .

What's your credit utilization ratio?

NikhilSingh25

95% , I know that paying minimum effects your credit score but what I don't get is How can my credit score go down 123 points in a month .

rockyo27

U can check on paytm also, with some minor details of monthly payments if they are on time or not

NikhilSingh25

rockyo27 said:
U can check on paytm also, with some minor details of monthly payments if they are on time or not

Paytm also shows 639 , i think it somehow got it from cred or my email coz it shows the credit score was refreshed today, but I didn't click on refresh or opened Paytm today for that matter.

vishal_k

NikhilSingh25 said:
95% , I know that paying minimum effects your credit score but what I don't get is How can my credit score go down 123 points in a month .

95%?? Either get an additional credit card or increase your card limit. Ideally it should be upto 30%.

PunkX 75

NikhilSingh25 said:
95% , I know that paying minimum effects your credit score but what I don't get is How can my credit score go down 123 points in a month .

That's why. Utilizing more than 30% of your limit tanks your score.

I always ensure to keep my utilization within 15%, at the most in a particular cycle.

NikhilSingh25

vishal_k said:
95%?? Either get an additional credit card or increase your card limit. Ideally it should be upto 30%

Considering how it screwed my credit score , gonna be hard to get a cc for some time.

PunkX 75 said:
That's why. Utilizing more than 30% of your limit tanks your score.

Shouldn't it like effect every month than tanking the score after 7 months.

PunkX 75 · 2024-04-27T19:57:34+0530

NikhilSingh25 said:
Considering how it screwed my credit score , gonna be hard to get a cc for some time.

Shouldn't it like effect every month than tanking the score after 7 months.

It tends to be flakey, some months show no change (positive or negative), while others show a sudden change (positive of negative).

NikhilSingh25

PunkX 75 said:
It tends to be flakey, some months show now change (positive or negative), while others show a sudden change (positive of negative).

well gonna get it below 30% now. Thanks for the info.

codwapeace

NikhilSingh25 said:
Minimum due . So you can say 100%

But it's been like this since August, I pay minimum every month and my credit score in August was below 750 , it had increased till last month .

You are the best customer for credit card companies and the “worst user” of credit card for yourself. Why? Why are you paying so much interest?

vishal_k

@NikhilSingh25 actually high credit utilization ratio indicates financial stress means higher chances of default. That's why score drops, so that one cannot apply for additional credit card/loan until score improves.

NikhilSingh25

codwapeace said:
You are the best customer for credit card companies and the “worst user” of credit card for yourself. Why? Why are you paying so much interest?

I had given a colleague some money which i took from my uncle and he didn't pay back, somehow things got tensed in family and i ended up taking the amount from my card to pay back.