7 Common Reasons Why Your Credit Score Went Down (PT. 2)

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https://www.youtube.com/embed/iKayDJbK2wg hello dreamers and welcome back to my channel we talk about all things cash why so you can utilize money as a tool to construct a life that you actually desire to reside in this video we'' re going to be continuing a list yes that'' s the word a list that we actually began on Wednesday and the list is everything about 7 typical factors of why your credit history dropped although you'' re doing all of the right things and know there'' s an error in your credit report did not make this list due to the fact that it'' s so obvious that there was no point in even covering it I'' m simply saying if you have actually not in fact seen the first part of this video I extremely encourage you to go and inspect that out due to the fact that it'' s an excellent video like seriously it ' s an excellent video and it ' s information that you definitely wish to know so that you can manage your expectations and manage your behaviors so you'' re watching out for these things because you put on'' t desire to be like why is my credit history dropping I wear'' t know what to do about it a few of these things you can do something about specifically the things that we covered in the first video so go check it out now if you'' re questioning who on the planet I resemble why am I discussing this and why you'' re still listening to me my name is kenabeek lewis and i'' m a monetary lifestyle coach with my labor of love seal off monetary training which that implies is that I'' ve dedicated my life to helping females entrepreneurs to use cash as a tool to construct a life they wish to live so we'' re gon na increase the cash in your organisation we ' re gon na use the cash from your organisation to achieve the important things you want to accomplish in life it'' s actually that'basic so'that'' s what we'' re here that ' s what my objective is and we ' re going to do this by speaking about credit rating and reasons why your credit goes to credit history dropped in this really video how am i starting the video tongue-tied guys now before we can dive into all the goodness of the rest of this list I want you men to go on and like this video because YouTube likes and so do I however I also desire you to register for this channel now ensure you struck the bell because if you put on'' t hit the bell you won ' t get notified when I drop brand-new content every Wednesday and Saturday and trust and believe you want these pointer tricks and methods for how to use cash alright because well I'' ve done it let ' s just put it that method I ' ve done it so you want these pointers these techniques and these methods so hit that huge red button hit the bell and now all right we can return with the list let'' s go let ' s proceed to factor number four of why your credit rating may have decreased when you ' re doing the best things it could be as basic as a credit card business has closed an account that you'' re not using let ' s state you ' re among those people that you'had 3 or four charge card you ' ve been paying them off using a debt snowball and you have one last credit card that you have open or you have one last charge card that'you'chose you ' re gon na keep and that ' s the one you ' re going to actively utilize well those other two three four charge card that you'formerly were utilizing are now non-active you ' re not spending for debts on them you ' re not doing anything with them like it ' s just sitting there well among the things that in fact can occur is that a credit card company may look and see that there'' s no activity on these cards and decide to close it a lot of us wear'' t recognize that the charge card business has the right to increase the credit limitation decrease the credit line or straight-up closed down the represent practically any reason that they want to and if you'' re not using the card that is definitely a factor of why they might decide they'' re going to completely closed that credit card so here'' s the important things that implies you have to keep your eyes open and be focusing for whatever mail that they send you because usually they'' re not gon na send you'an email you ' re not gon na get a text message you'' re not gon na get some great simple to find notice you'' re gon na get a piece of mail like general delivery which snail mail you have to read it and understand what they ' re stating since they ' re going to tell you through the mail that they'' ve closed the account however if you'' re like so many Americans nowadays who doesn'' t read their mail they might glance at it state oh Captain America toss Bank of America throw it away if you'' re among those individuals you risk of not getting crucial information such as your cards been closed and the reason this will drop your credit score in a lot of instances is because it'' s jacked with your credit utilization you initially had $15,000 offered now has actually gone to 10 however you have a $5,000 balance so your credit utilization went from 33% to 50% and one fell swoop if you'' re not reading your mail from your charge card companies you don'' t even know they ' ve closed the account therefore now you ' re working believing your credit utilization is low when it'' s actually gone up a fair bit so this is my recommendation to you read your mail when you see your charge card companies send you something in the mail I understand the majority of the time they'' re attempting to get you to purchase something else however make sure you a minimum of read it quickly to understand what'' s going on that way if something like that happened you understand that it'' s going on and you understand right away how to start making some changes to account for the truth that they'' ve now closed this account now factor number 5 is among those ones that a great deal of people have no idea about and I discover it rather fascinating so it'' s something called scorecard Hoppe and'you ' re like alright what ' s the scorecard and why are you hopping then I got you so a scorecard is essentially how credit reporting bureaus group together people that have comparable danger so a threat would be something like insolvency that puts you in a certain type of threat so that'' s gon na put you on like you know one of those personal bankruptcy rating cards or if you ' re someone who tends to have a really high crate utilization that'' s another set of score cards if you have say a home mortgage that might be another set of rating card so they have a bunch of different rating cards then they utilize to swelling together individuals that have comparable kinds of risk well what occurs is that as your life modifications as things alter for you may jump from one score card to another so let'' s say for example that there was a bad account that you handled to get settled and it'' s over like it ' s finished with and perhaps you even gotten those who concur to completely remove it from your credit report well when that'' s eliminated gotten rid of from your credit report now you'' re going to hop to another rating card another prime example are people who remain in personal bankruptcy generally if you were in personal bankruptcy as soon as your bankruptcy is over you ' ve you understand completed it out you all hop from the personal bankruptcy scorecard to another scorecard well when you hop from one rating to'another you ' re being examined versus other people because scorecard and since of that it'' s going to tinker your credit rating so even though advantages might have occurred on your credit report it really can drop your credit rating due to the fact that now if switch you in a brand-new rating card and frankly it sucks however there'' s absolutely nothing you can do about it so that'' s among the important things that might be going on you might not have actually done a single thing like you may not have actually had in a single stet you'' ve continued to pay your debt like you typically have you have actually not changed your habits at all however just because something fell off of your credit report you didn'' t hop from one score card to another and since you'' re being compared to other individuals now your credit your credit rating has decreased a bit due to the fact that you look a little bit various I know I'' m sorry however it is what it is all right so we'' re down to the final two common reasons of why your credit history may have altered even though you'' re doing all the best things number six is that the credit reporting company might have merely altered the FICO formula that they'' re utilizing to calculate credit scores if you remember from the last video the last episode you heard we talked about the fact that um that there'' s different formulas for the credit rating I know I ' m getting truly tongue-tied suddenly I wear'' t understand what ' s going on however there are various formulas for the FICO score so right now they ' ve recently released a FICO 10 but these different organizations these credit reporting companies they get to choose which a formula they get to utilize therefore one may be on a FICO 7 another may be on FICO 4 and one might be on FICO 9 but then they might have decided you understand what we'' re gon na alter from FICO 7 and we'' re going to make that jump all the way to FICO 10 well FICO 10 is calculated in a different way from FICO 7 for example FICO 10 as in a new an obit to the formula around how you are behaving like they actually are considering your behavior trends so like if you'' re a person who you put everything on a credit card and after that you settled each month that'' s in fact a various trend and that pattern is going to be treated a little in the calculation than people who simply you understand they paid up and after that like as soon as a year they pay the entire thing off at their taxes that'' s actually different patterns and those are going to be approached and viewed in various ways so if they change from FICO 7 to FICO ten your credit rating may have altered simply due to the fact that they'' ve added in this trending data as part of the new formula again that'' s something that you can not manage but it'' s something that you need to be cognizant of so your credit history might not have your credit report might not have actually changed at all but just because they have altered the formula that they'' re using to compute your credit report can imply that your credit rating will decrease alright I have one more thing and once again it'' s something that you can ' t actually control but it is a typical factor regarding why'someone ' s credit rating can go down when'they ' re doing all the right things so there may have been an account on your credit report that was a really positive account like you constantly paid it on time you never ever had any many missed out on payments no late payments and you paid it as agreed you might have even paid it off a bit early so it was marked as you understand paid completely it was marked as you understand paid as agreed or whatever one of those actually truly excellent signs well after a certain quantity of time once an akai has been closed it just stays on your credit report for anywhere from 7 to 10 years normally at 7 years with some things may change so it could be 7 to 10 years that it'' ll state on your credit report well it might have been 8 years given that you paid that thing off and now it'' s fallen off of your credit report well if there was a time where say there resembled this two-year duration where you were struggling actually terribly in between the time that account was closed and now and you were missing payments you had late payments well you no longer have that favorable account to balance out those missed out on payments those late payments during that momentary season so because you'' ve now lost that really positive account on your credit report it winds up making your credit report and go lower because you don'' t have that to offset the bad things again that'' s something you'can ' t really control there ' s not anything that you can do about it it'' s just something you need to be cognizant of so just understand look at your credit report so perhaps you might to see your credit report now and you compare it to a credit report that you pulled like two years ago and you'' ll see that there ' s an account missing that used to be really good which'' s how you know that alright part of the reason my credit history altered is simply due to the fact that this truly positive actually good-looking count fell off is my credit report and is no longer balancing out the bad things that happened throughout that thun/ airy season so once again I understand it draws there'' s nothing you can actually do about it it'' s just how the formula works and it'' s just something that we have to understand and know can possibly occur all right so there you go you have these seven common factors for why your credit report may have dropped even though you are doing all of the things right which of those items really stood apart to you exist any that you'' ve experienced any that'' s ever kicked your butt I understand that you can actually draw when you consider the items that you have definitely no control over like changes in the formula or things falling off since they'' ve aged out I understand it ' s not enjoyable particularly when it drops your score however you understand it is what it resembles we simply need to work within the system that presently exists now that being stated remember that the huge bulk of your credit history is still figured out by your actions it'' s still figured out by the things that you are able to achieve so what I want you to do is I desire you to look and see what are the important things that I'' m doing that ' s adding to the drop of my credit score some of the things once again I'' ll be on your control but ensure that you take control of the things that you can control and if you'' re one of those individuals who is discovering it actually challenging to get your guys your finances handled to get things organized so that you really can take that control over how your credit report is flowing and working and fluctuating well wear'' t worry I got you most of the important things that I teach when it becomes budgeting and being able to pay your bills on time and being able to pay things off and to eliminate financial obligation and to be able to lower your vehicle utilization the things that I teach will help you do that and if you are definitely struggling right now then the important things that I want you to do is I desire you to get on a quick technique console with me 30 minutes on a video chat and we'' re going to walk through what'' s going on and life and how we can produce some really easy actionable steps that will help you to get your finances back under your control so that now you can get that credit rating under control the beautiful aspect of the rapper strategy seek advice from is that it'' s complimentary oh yeah it'' s on me I ' m spending for it so to get access to your rap artist method consult all you need to do is go to tiana be unaware comm forward slash book online scroll to where it states a quick method and click that book now button ok the link obviously is going to be in the description however it'' s truly easy Tiana B clueless comm for CH lash book on line and if you'' re ever having difficulty discovering it from my homepage just simply click training and it'' ll be truly simple to get to now that you have my strategies in mind and a method to connect for more individually help let'' s get linked on social networks you can find me on instagram and twitter with the deal with tiana b clueless or on facebook under seal a monetary coaching because facebook is difficult it won'' t let me alter it ' s okay though also let me understand that you discovered this video helpful by striking that like button and subscribing to my channel don'' t forget to strike the bell so that you'' re informed whenever I drop new content every Wednesday and Saturday lastly if you'' re looking for more methods on how to reclaim control of your financial resources so you can improve that credit history I have 2 videos here that when you use those methods together it will help you do simply that so click a video get to viewing it and I'' ll talk to you soon bye bye youAs found on YouTube – Creative Commons License

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License: Creative Commons