I’m inserting myself into imagination land and answering the hypothetical question why does my coco score keep going up and down.
Why does my fico score keep going up and down?
Fico scores could go up and down for a couple different reasons:
- making payments on credit accounts
- If your creditors send info to any of the 3 main credit bureaus
And those reasons alone explain the logic behind making routine payments on your credit reports.
Why does making payments on credit cards affect a FICO score?
It’s because it shows evidence of repayment.
Payment history is the single most important factor that affects your credit score.
This action alone accounts for over 35% of your entire score!
According to the Consumer Financial Protection Bureau paying off your credit card balance every month helps your score.
Why do we have 3 credit bureaus?
It’s because they’re separate companies that compete for the business of creditors.
These creditors use the credit reports and scores from these bureaus to help them make lending decisions.
The 3 main credit Bureaus are:
- Equifax
- TransUnion
- Experian
It could be confusing to comprehend why have 3 different bureaus and ultimately 3 scores but I just see it as expanding opportunity.
These are the structures that get communicated with when you’re applying for a mortgage or credit card for example.
Why is it best to have a routine with your credit payments?
It makes things more likely that you’ll have a lower credit usage rate when the bureaus receive your information.
And according to Forbes it saves money on interest.
RealTalkAJ 
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