It can be perplexing when you think you’re doing all the right things to improve your credit, only to see your credit score drop instead. Whether substantially, or even by just a few points, seeing your score go down can be frustrating, especially if you aren’t sure of the cause. While it can sometimes be difficult to pinpoint the exact reason, some of the following are possible causes:
Your credit utilization rate is high
If you’ve got a lot of debt, this could bring down your score, regardless of whether or not you’re timely with your payments. So if you just made a large purchase with one of your credit cards and it’s maxed out, or very close to its limit, this could be the cause of the drop in your credit score. Try to avoid using all of your credit. If you do, paying all or most of what you charge as quickly as possible will help avoid any decrease in your credit score.
Your final collection was removed from your credit report
FICO puts consumers in different categories, known as scorecards, when determining credit ratings. Your credit report is compared to other consumers’ reports who are in the same scorecard as you. Because of this, you could be high on the scorecard when you have a collection on your credit profile, but once it’s removed, you may be placed in a different scorecard and fall to the bottom of that one. However, this type of credit score drop is usually just temporary.
Your bankruptcy was removed from your credit report
Similar to when a collection is removed from a credit report, when a bankruptcy is removed, you may also notice a credit score drop. Your credit score may go down because your current credit activity is being compared to those who haven’t declared bankruptcy.
Are you receiving long-term payments from a structured settlement or annuity, but would prefer to receive money sooner? Peachtree Financial Solutions may be able to help. At Peachtree, we can purchase your future payments and offer you money sooner in one lump. When you sell payments to Peachtree, you can decide just how many payments you want to sell. Some people decide to sell all of their future payments, whereas others choose to just sell a portion of them and keep the remainder of their payment stream intact.
If you’re in debt and looking to improve your credit score, receiving your money in one lump sum can make it easier to pay off debt and take care of other monthly expenses that may have been piling up. Why wait for your money to arrive in periodic payments when you don’t have to? Receive money sooner in a lump sum so you can get cash to tackle debt once and for all. To learn more about selling future payments for a lump sum of cash, contact Peachtree Financial Solutions today. We’ll be happy to explain the process to you in further detail, and we can also provide you with your free quote.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.