We have no control over the increase or decrease of your credit score. The credit reporting agencies (Experian, Equifax,TransUnion) generate your credit score based on 5 factors. We can only advise you as to what you can do to increase your credit score. Look at the reasons listed below and review your most recent credit report to determine what may have caused a decline in your credit score.
REASONS WHY YOUR CREDIT SCORE MIGHT HAVE DECLINED
- Most of your available credit is being used
- Utilization has a 30% impact on your FICO score, so it is extremely important to maintain balances that are well below thirty percent of the limit on each card so that your credit scores do not decline. If you carry high credit card balances, or if your balances increase after starting the program, your scores may decline or may not increase.
Example: John signs up for the credit restoration program with Leaf Credit Solutions on June 15th and upon reviewing his report we see that he has a 617 mid FICO score. John has a Discover card with a $1500 limit and a $279 balance and a Citi card with a $2500 limit and a $629 balance. After 60 days in the program, John now has a $1379 balance on the Discover with the $1500 limit and a $2200 balance on the Citi card with the $2500 limit. After 2 months his utilization ratio is at 90% and his scores drop by 47 points due to running up his credit cards.
- A past unpaid account was just recently reported to your credit
- Any new derogatory accounts reported to your credit after you enroll in our credit restoration program will cause a decline in your credit score. Negative information that the credit bureaus report to your credit after we have started working on your credit is not predictable, but can be dealt with if it occurs.
- Paying accounts late
- Payment history makes up 35% of your credit score and any late payments will have a significant negative effect on your credit score. Maintain on time payments on all open accounts. Be aware that late payments will cause your credit score to decline and paying your creditors on time is solely your responsibility.
- You applied for new credit
- New credit account inquiries have a 10% impact on your credit scores and excessive loan applications should be avoided because it will cause your credit scores to decrease. While going through the credit restoration process avoid applying for new credit unless advised otherwise by your case manager