Mom got INSTANT BCE AmEx APPROVAL with a 685 FICO!

[Enmie]

This: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/New-Credit-Card-Option-for-Mom-with-685-Fico-...

New Credit Card Option for Mom with 685 Fico Besides Sapphire?

Hi, everyone, my mom is in her 60s and she used to have a 735 Fico last year and when she finished paying off her car loan last December, it went down to 685 (says from Experian)!! :'(

Description says

Your Key Score Factors were:

Number of accounts with delinquency <- how did this happen?! No late payments, no deliquent accounts; is it 'cause her car loan was just paid off and closed??

Lack of recent installment loan information <- this because her car loan account was paid off and immediately closed in Dec 2013

• I forgot to say Chase recently re-issued a new Freedom credit card with a different card number to her since she used it at Target last month. Could this have caused the drop?
• I just finished pulling all 3 reports. There is no delinquency at all, except for that one 2007-08 loan that is already closed and paid off that is marked as "potentially negative" / "adverse account" in all 3 which was a bank loan. It also has 2 30-day late payment halfway through its closing date, and that's it. Could that be it?
• There's also one line in the EXPERIAN report indicating that there's a Social Security Number Variation(s): XXX-XX-XXXX (a SECOND different SSN), however, there were no other delinquencies cited in the report besides the older above loan I mentioned <- could this be the cause? All the revolving accounts are in good standing, nothing to dispute other than this. I WILL have this corrected nonetheless. In the meantime, have you guys previously read about / ran across any similar situation in this forum?

1. So is it really because her Car Loan was paid off that her FICO dropped that much? Any other way to recover it besides opening another loan? We just migrated from Asia (well 9 yrs ago but a whole lot of bumps) that's why she only has that low FICO I'm so sorry :'(
2. She has 3 CCs: Chase Freedom, Target Card, and her bank-issued CC.
3. Current Debt / Credit Limit Ratio :   $4108.25 / 6800 (yes it's above 30% but will be paid off before next billing cycle)
4. She doesn't want AmEx in the mean time since it doesn't contribute to the utilization ratio in #3, though it will factor in the payment activity, but still mom likes to increase credit limit first, is that correct?
5. What are her options then, should she be looking for the Cards in the "Fair" category since what's left under "Good" is Chase Sapphire and the rest AmEx cards. Should she just choose a Fair Fico Barclaycard?
6. I am afraid of helping her open the AARP Chase card because of the horror stories I've read about it, that the company is trigger happy in closing the account right away for claims of "suspicious activity", etc., and I don't want her current Chase "Freedom" card be affected by that. What is your opinion on this?
7. Thanks so very much and wishing you all a very prosperous 2014.

[Creditaddict]

1. Number of accounts with delinquencies needs to be figured out before she applies!

2. American Express has credit cards and charge cards... The credit cards would have a limit that reports.

[Enmie]

Hi, Credit Addict. How can we figure out the delinquencies exactly? Where do we go or ask??

EDIT: The only thing I can think of is the recent NSF Charge in a CHECKING account from her Credit Union 29$ but is this also a part of the credit score computation?

The FICO Score indicated that it was pulled out earlier than the recent NSF Charge, so I don't think it's that. NSF Charge paid off and in the clear.

[Chris679]

You can pull all three reports for free at annualcreditreport.com. I would figure out that before proceeding with cards. Also why does she need another card?

[Networth]

You should pull your moms full credit report from all three agencies to get all the information you need to contact her delinquent accounts. The government offers you 1 free report from each bureau each year calendar year. If it was my mom that is where I would start. Just Google annual credit report, best of luck. On a side note I would worry about fixing her credit before worrying about any new TLs.  

[Enmie]

Hi, Chris, she wants to increase her credit limit and also we're planning to buy a house so we're all hoping it could help, besides her annual income.

EDIT: And also, she said because she received two offers with cash back rewards when x activity is met.

[Enmie]

Networth, Chris, et al, so guys how long soon after I pull out the reports from annualcreditreport can she apply for a new card, assuming no delinquencies/errors. Pulling the report is a negative in the FICO, right?

What if there's an error? The only solution is to physically mail every requirement? I've seen the CBS 60 Mins special on this, and it's quite scary. So that's the only option, mail and then call the credit bureaus? and then it's a waiting game? If no change go to state AG, FTC, etc?

[Networth]

It never hurts your report when you pull it yourself. Only when creditors such as auto loans, mortgages, credit cards etc pull your credit report does it count as a hard inquiry. As for when your mom can apply for a new card that is a very open question. It all depends on her score, report, income, card she is applying for. Yes when contacting the credit agencies it is all by snail mail when it comes to corrections and so on. 

[Vegas247]

Just get a Barclay Rewards MC for fair credit.....your mon will love it..no annual fee!

[wHiTeSoL]

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@Enmie wrote:

Hi, everyone, my mom is in her 60s and she used to have a 735 Fico last year and when she finished paying off her car loan last December, it went down to 685 (says from Experian)!! :'(

Description says

Your Key Score Factors were:

Number of accounts with delinquency <-This is a huge issue and you need to pull her credit report right away, go to www.annualcreditreport.com

Lack of recent installment loan information <- ignore this one, it makes a difference but a really small one and not worth paying interest for it. 

1. So is it really because her Car Loan was paid off that her FICO dropped that much? Any other way to recover it besides opening another loan? We just migrated from Asia (well 9 yrs ago but a whole lot of bumps) that's why she only has that low FICO I'm so sorry :'( No
2. She has 3 CCs: Chase Freedom, Target Card, and her bank-issued CC. She doesn't really NEED more
3. Current Debt / Credit Limit Ratio :   $4108.25 / 6800 (yes it's above 30% but will be paid off before next billing cycle) looks like you corrected this already, good.
   
4. She doesn't want AmEx in the mean time since it doesn't contribute to the utilization ratio in #3, though it will factor in the payment activity, but still mom likes to increase credit limit first, is that correct? There are revolvers (traditional credit cards) as well as charge cards which don't help with util
5. What are her options then, should she be looking for the Cards in the "Fair" category since what's left under "Good" is Chase Sapphire and the rest AmEx cards. Should she just choose a Fair Fico Barclaycard? Fix the incorrect reporting first, then reasses
6. I am afraid of helping her open the AARP Chase card because of the horror stories I've read about it, that the company is trigger happy in closing the account right away for claims of "suspicious activity", etc., and I don't want her current Chase "Freedom" card be affected by that. What is your opinion on this? 
7. Thanks so very much and wishing you all a very prosperous 2014.

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Pulling your own report does not hurt it at all.