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FICO keeps tanking:

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clipperskipper
Regular Contributor

FICO keeps tanking:

Hi just curious why my FICO keeps tanking other than the hard inquiries (7-9, depending upon who's reporting)

from mortgages written in recent years. I have six properties, three mortgages (all income property), five credit cards, three are zero balance

and two have $6000 total between the two,  currently  20% utilization. I have no lates, no records of any kind ever, green payment history, no car loans

or any other payments. I just obtained my FICO score which has dropped to 699. I used the simulator which shows a potential 701 if

I pay my plastic off. I am currently hitting the plastic hard, paying $800 each week which should put me debt free by Labor Day. The plastic

was for a remodel for one of the investment properties I bought in 2008. Any ideas why such a low score? Are the hard inquries that big of a hit?

They are spread out over time, one drops dead this month, two more in June. Thanks!

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: FICO keeps tanking:

Hard inquiries DO hurt you, especially if there are more than 2 a year.  If you don't need new credit, definitely don't apply.  Heavy utilization of card cards and carrying balances also hurts, especially when you get over 30% utilization.  I'm not expert - but your situation is similar to where I was a few months ago, so I think the same would apply in your situation.  You should notice an increase in your score once you get under 30%.

Message 2 of 7
clipperskipper
Regular Contributor

Re: FICO keeps tanking:

I'm with you on the hard inquiries, and we did switch merchant banks in January so I got whacked twice there, even though

I used my DUNS number in place of my SSN on the application, they were able to figure it out anyway. The second inquiry was from

AMEX for the merchant account, even though we did not apply for, or would ever do business with AMEX. Just curious if I could protest this one.

Again my utilization is 20% on those two cards so I think that my answer is mortgages, or how writing a 30 year hurts for a long time.

Over to the mortgage forum for that one.

Message 3 of 7
llecs
Moderator Emeritus

Re: FICO keeps tanking:

OP, did you recently open any new accounts? That's a score-killer.

 

Overall, inquiries aren't that bad, IMO. I've gone from 0 to 1 and 1 to 2 with no score change. At one point, I had over 30 (yes 30) on EX and when I could pull our EX FICO scores, there was no score change. However, I have opened new credit and have lost as much as 10-20 points, and even 70 last summer for opening 3 new TLs. Also note that FICO stops scoring inquiries beyond 1 yr old. And inquiries are grouped and scored as one per FICO scoring for auto and mortgage inquiries for a period of 14-45 days, depending on the CRA and FICO version used.

 

Per CCs, for best results, get all but one to report $0 with the remaining reporting under 10%.

 

Congrats on the debt paydown.

 

 

Message 4 of 7
clipperskipper
Regular Contributor

Re: FICO keeps tanking:

No new credit, in fact my newest card just turned five. I've been following some of the threads on score simulators, and think that

paying these off is the key, I cannot see any reason why it shouldn't be in the mid-700's.

Message 5 of 7
RobertEG
Legendary Contributor

Re: FICO keeps tanking:

If your FICO is below 700 with what you show as a great credit mix, and curent % revolving util of 20% and faliing, the inquiries are not sufficient to cause that degeree of harm.

I am only speculating, so forgive me if I am wrong.  That score, with that history, indicates to me that you still have old derogs on your CR that are still dragging down your score.   Payment of old derogs (be they old OC account delinquencies, COs, or CAs) does not drop them from credit scoring until the 7 or 7 1/2 periods set forth in FCRA 605(a) have expired.

So, to give a good answer, what is needed is the detail of any derog still appearing in your CR.

 

 

Message 6 of 7
clipperskipper
Regular Contributor

Re: FICO keeps tanking:

Thank you for the replies, I just pulled all three reports and there are no derogs, no lates, nothing. I did get a copy of a cr that BOA gave me while

getting a mortgage which read length of time of credit too short. I think that this would have been the Lowe's store card which just turned five. I'm

peddling like crazy with the plastic, as of last night I owe $7200.  Thanks again for all of the great input.

Message 7 of 7
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