Why Did My Credit Score Drop?

If you’ve seen a change in your credit score recently, you may be wondering why. There are a number of factors that contribute to a dropping credit score and it is important to know what may be causing that! When buying a home, it is important to maintain your credit and not make any major purchases that could impact your score. Here are the top 5 reasons for a drop in credit:

YOU MADE A LATE PAYMENT

Accounting for about 30% of your total rating, your payment history has a big impact on your credit score. If you make a loan or credit card payment more than a month after the due date, it could cause your credit score to drop. A payment 60-90+ days late will have an even greater impact on your score.

YOU MADE A LARGE PURCHASE

Your credit utilization ratio can largely impact your credit score. Your ratio is how much of your credit you use in relation to your total available credit. The goal is to have a lower ratio so if you’ve been using more of your available credit lately, you may see a drop in your score. If for any reason your credit limit is lowered, it can impact your credit utilization ratio and impact your score.

AN ACCOUNT GOES TO COLLECTION

Timely payments on all accounts is an important part of your credit journey. Late payments on credit cards, loans, to medical facilities, student loans and utilities can be sent to a collection agency, which could in turn show up in your credit report.

YOU OPENED A NEW LINE OF CREDIT

When you apply for new credit, you are giving lenders the permission to access a copy of your credit report, which is known as a hard inquiry on your credit. If your credit report indicates that you’ve applied for multiple new credit lines in a short period of time, your credit score may be impacted.

YOU CLOSED A CREDIT LINE

Closing a card means losing available credit, which could increase your credit utilization ratio. As a result, your credit score may drop. If closing a card helps you stop spending, it may be a good idea. Otherwise, it is usually wise to keep lines of credit open. The length of time you’ve had accounts open shows that you have a solid payment history, so that could be another reason to keep that card you’ve had awhile open if you are using it wisely!

25 Cheap Ways To Upgrade Your Home

25 Cheap Ways To Upgrade Your Home

1. Add some character and add texture to your walls with peel-and-stick wall panels.

2. Create a charming accent wall with peel-and-stick paper.

3. Upgrade your countertops to faux granite with a DIY paint kit instead of spending a fortune to replace it.

4. Reseal all those cracks in your tub and tile with caulking and make your bathroom look new again.

5. Update recess lighting without doing any electrical work with magnetic shades.

6. Install crown molding to help make your home look historic and charming.

7. Adding a fresh coat of paint to get that pop of color (or get rid of it) will give your home a touch-up without costing you a fortune.

8. Get the stainless-steel appliances you've always wanted at a fraction of the price with paint.

9. Add privacy and a touch of elegance, and make your windows look super expensive, with with "leaded-glass" film.

10. Paint your cabinets to give your kitchen that just-remodeled feeling for pennies versus what it would cost to replace them.

11. Add a new tile backsplash to give your kitchen (or bathroom) that gorgeous custom look.

12. Add a medallion to your light fixtures to instantly elevate your ceiling game.

13. Paint your ugly vinyl floors to get rid of the eyesore without ripping up the floor.

14. Bulk up your baseboards with paint and extra trim instead of replacing them.

15. Install shelving systems in every room to add storage.

16. Upgrade the fixtures in your bathroom to give yourself a mini spa experience.

17. Swap the handles on your cabinets and drawers to update your kitchen.

18. Add a doorbell to your home if you don't already have one, or upgrade your current one.

19. Update light switches to give your home a fresh look and a tech upgrade.

20. Add some curb appeal and a pop of color by painting your front door.

21. Forget interior designers! Find matching fabrics, paints, and materials with a color match tool.

22. Get even more curb appeal by sanding down and painting rusted railings.

23. Consider these useful tips for upgrading your bathroom.

24. Cover door scuffs and prevent new damage with a metal kick plate.

25. Add adhesive mirrored tiles to the underside or top of your cabinets to subtly reflect light and make your space look brighter.

5 Home Projects To Outsource

We live in a DIY world. If there is a video online for how to do something, there’s a good chance you can figure out how to do it. While saving money by doing certain projects yourself can be rewarding in many different ways, there are some projects that should be left to the professionals. Unless you have training in specific fields, these 5 things usually require a professional contractor:

Electrical Wiring

Without any electrical experience, you run the risk of causing damage to both yourself and your entire electrical system. Even if you do shut off the power before messing with any wiring, there can still be many issues that arise afterwards - including electrical fire. Avoid the danger and call an electrician!

Wall Removal

Knocking down a wall can sound like a fun idea. Even if you were getting excited to release any anger on that wall in your home, this is a time when it is best to call a professional. Walls are a key component in maintaining the integrity of your home and it’s structure. If you accidentally knock down a load-bearing wall, you could cause catastrophic damage.  

Foundation Alteration

The name of the structure itself should already make you proceed with caution. Your foundation is the most integral part of your home, and messing with it without experience could land you in a very tough spot.

Flooring

While some flooring can easily be done alone, some of the bigger projects should be left to the professionals. If leveling the floor is part of the project, it may be time to call someone in. Having a floor that isn’t level can cause you headaches for years to come.

Plumbing

Just like electrical projects, plumbing projects can be extremely complicated. When not done correctly, you can end up with burst pipes, flooding, and interior water damage. Save the stress and call a plumber!

Choosing The Best Bathroom Tile

If it is time for your bathroom to get a renovation, you are likely already thinking of what style you have in mind for the update. One of the major parts of that design is your tile. Here is a quick guide to choosing the best tile!

1. Pick Out Your Favorite First.

When looking at tile options, you will likely find one that you immediately fall in love with. If you find yourself picturing the rest of your bathroom based off a tile, choose that tile and use it as your starting point.

2. Keep It Simple.

Depending on your bathroom, you might have floor tile, wall/accent tile, and bath tile. Try to use no more than 3 different types of tile, and do your best to keep it to 2. You will have trouble matching tiles the more you choose and tiles that differ too much in a small space can make it feel cluttered. If you ever plan to resell your home, choosing too many tile options or choosing extremely decorative tile can date your bathroom quickly and might end up costing you during the selling process.

3. Consider Maintenance.

Have you ever had a bathroom where it felt impossible to clean certain parts? Keep that in mind when choosing your tile. Consider the amount of maintenance it will require. If you prefer little to no maintenance, choose either a porcelain or ceramic option. If upkeep isn’t a big deal to you, natural stone is an option for you as well.

4. Choose!

The hardest part is choosing. Instead of doubting yourself, take that tile you first fell in love with a see if you can imagine a bathroom styled around that tile. If you can, go for it!