Why is my credit score going down when I pay on time?

Home Questions Credit Score Why is my credit score going down when I pay on time?

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #441
    KikoffKikoff
    Keymaster
    #476
    KikoffKikoff
    Keymaster

    Even if you’re making credit card payments on time every month, there are still some ways your credit score may dip.

    • Payment History

    Your payment history makes up about 35% of your credit score and includes your record of paying bills on time. So even if you’re paying off your credit card every month, missing another bill payment can still reduce your score.

    • Credit Utilization

    Credit utilization means how much credit you’re using compared to your total credit limit. You want to keep your utilization ratio below 30% to show that you’re not pushing your finances to the limit.

    • Length of Credit History

    The length of your credit history contributes around 15% to your credit score. A longer credit history generally boosts your score, and a brand-new credit account might do the opposite.

    • New Credit Inquiries

    Applying for new credit will result in a “hard inquiry” on your report, which can lower your credit score temporarily. Multiple inquiries within a short period can have a big impact on your score, even if you’ve been paying on time.

    • Credit Mix

    A diverse credit mix, including credit cards, installment loans, and mortgage loans, for example, can benefit your credit score. It shows that you can manage different types of credit responsibly. So if you pay off a loan, it might mean your credit mix looks less balanced.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential.  Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress.  Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.

Latest questions

Home Questions Credit Score Topics

Viewing 15 topics - 1 through 15 (of 45 total)
Viewing 15 topics - 1 through 15 (of 45 total)