My credit score is around 700. I have one credit card that I pay off everything at the end of every month (i.e. I never carry a balance)and that’s it. No loans, no debt nothing. Yet my credit score keeps jumping around a lot with each report; it was 727 in july last year, 678 in Oct, 755 this January, and now 708. And I’ve done nothing besides dutifully paying my bills and credit card each month during this time. I have signed up for a credit monitoring service from Bank of America, but it makes no sense. Right now, it projects that if I keep making all my minimum payments for the next year my credit score will decrease by 3. Wtf? I moved here from Europe and credit score is incredibly difficult for me to grasp, yet it’s extremely important. Each time I get my credit report it’s like flipping a coin if it goes up and down, and all I do is pay everything each month.
So is there any service that can explain and advice how it all works and what I can do to keep improving it? Most services are geared towards repairing bad credit, but mine is OK, I just want to know what I can do in the long term to improve it. Just paying everything on time doesn’t seem to do it since my credit is currently worse than it was a year ago, and it’s predicted to keep going down??
I asked at bank of america, but they were admittedly not sure and just gave general advice from personal experience. Is there someone I can talk to that can take the voodoo and wives’ tales out of the the credit score and explain what is going on? I have no problems handling my financial obligations, so I just want to know how I can get the best credit I can have.