What Makes Credit Scores Change?

Impacts on Your Score

As mentioned before, knowledge is power. Your FICO score can change easily so it is imperative you understand what credit decisions will affect your score. Listed below are the most common items that can cause your credit score to change.

  • Opening An Account: Every time you open a new account your credit score will drop. FICO has defined opening a new account as a consumer already reaching their credit limit and needing more. If you manage the new account responsibly, this dip in your scores will only be temporarily.
  • Revolving Accounts: To maximize your credit score, your revolving accounts should have a balance of less than 20 percent of your credit limit. High balances are a bad sign to lenders and therefore harm your score.
  • Credit Inquiries: With a few exceptions, every time there is an inquiry on your credit report your score will lower slightly.
  • Store Credit Cards: The FICO model holds negative weight on consumer credit cards such as clothing, furniture, and electronic stores. It is a good idea to avoid these credit cards altogether.

Credit Repair

During our credit repair program, you will learn what affects the FICO score in more depth. We will teach you the dos and don’ts to achieve your credit score goals.