How to Fix Credit score, dropped by 60 points-1

I’ve bought 3 homes and sold 1 in the U.S. so far, with at least 5 refinancing deals along the way.

Currently, I live in New Jersey, and the house I bought here was purchased in September 2023,

right as interest rates were hitting daily highs.

I locked in a 30-year fixed mortgage at 7.56%, and my credit score at the time was 725.

This was a shock because, just a couple of years earlier,

my credit score was in the high 780-790 range.

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In 2021, I refinanced my California home at a 2.99% interest rate—right before rates started climbing.

At that time, my credit score was 780.

But by the time I was ready to buy in New Jersey,

my credit score had dropped by more than 60 points.

With rates climbing every day, I had no choice but to lock in quickly,

leaving me no time to investigate what went wrong with my score.

A year later, I decided to take matters into my own hands and reached out to

all 3 major credit bureaus to get some answers.

And after nearly a week of persistence, I finally uncovered the issue.

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Back in 2020, I had returned a leased Nissan Infiniti, and we’d had a disagreement over the final charges.

After the lease ended, they billed me for additional costs I didn’t agree with,

so I delayed payment while we negotiated.

Eventually, we settled on a reduced amount, and I paid that.

However, Nissan reported this to all three credit bureaus with the note

“Payment completed less than full amount”

—a vague record that ended up costing me over 60 points on my credit score.

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My mortgage broker mentioned that,

It’s common for companies to tack on extra charges without fully explaining them to customers,

or like in my case, agree to a reduced payment and

then turn around and report it negatively to credit bureaus.

Sigh… Since this all happened 4 years ago,

I don’t have any of my account details or records from Nissan Infiniti.

But leaving it as is isn’t an option if I want to get a favorable rate when refinancing,

considering my lowered credit score.

(Continued in the part 2)

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