Trying to understand what happened with my score...

[Anonymous]

My score was previously 799 and then one day i got a call from a collections agency...

I had an AMEX Blue card from years ago (got it in college) but hadn't used it in at least a year and a half. In November of 2006 my car was broken into and my briefcase stolen so i had to get a few cards re-issued. While my BoA (primary card) was being replaced i used that AMEX card to buy Starbucks, dinner for my parents, and long term parking at the airport. In a few days time i had my replacement BoA card and i never thought anything about it.

Forward to July 2007...I get a phone call from a collections agency asking what my intent was on my AMEX card, i was like "What do you mean what is my intent?". Come to find out that i was over 6  months delinquent in paying that balance! (statements went to old college address) The amount of money was SO insignificant (i think it was $286) and of course i paid it off immediately but my credit went from 799 to 589. Side note: i find it amazing that AMEX never tried to email me (that email address was current on file) or call my cell (also current), but the collections agency not only had my cell phone number they had my work number as well.

I'm blown away that such an irrelevant event dropped my score so much. I have an immaculate standing with all credit cards and was planning on buying a new home this year. This has seriously jeopardized my mortgage situation.

My score recovered to 703 the very next month, but since that AMEX was my oldest card it is now closed and that bit of credit history is gone. I have since closed all other accounts that i don't use anymore credit scores be damned; i.e. i understand the potential of losing some more points on my credit score but i sleep better knowing that that Macy's account i opened for 15% off that day and the Express Men card i opened for the same reason won't come back years later to bite me in the anus.

Current situation: Score 687 (i'm guessing because i closed two more accounts; down to 2). I have two credit cards: BoA Signature ($30,000 limit) and WaMu (originally Providian and my current oldest card; never used really) with a $4,700 limit. Dual income household, income well over 100K (although i've heard that income doesn't play into credit score, can someone confirm?

I want my credit score to be in that sweet spot where i can leverage the best possible mortage in 3-6 months. What score is that? and what can i do to raise my score back up to that in the next 2-3 months?

Appreciate everyone's advice and opinion.

Sasa

P.S. Just occured to my, may be worth mentioning in case it matters for any advice. No debt of any kind; no student loans, no car loans (all owned), and no revolving balances (always paid in full).

[Anonymous]

There is no logic when dealing with these con artist, excuse me credit reporting agencies, at least thats my experience. I'm in much the same situation. The very fact that income does not play a role in your score is utterly ridiculous. I was told by a bank president that unless you break 800 there is no difference between 700 and 799 when it comes to mortgage rates. That may have changed since August, since it appears that all the rules were rewritten after AHC went under early in that month. You should have no problem getting a conventional mortgage in the low 6's as long as you get the score above 700 again, that is of course barring any outside influence by our criminal syndicate friends at the Federal Reserve. To give you an idea of how screwed up my credit is, well 631 Fico and I make over 100K/ Mo. and never miss a bill. Mine is over a credit card scam by Premier Bank, I never even used the card and my credit did pretty much the same as yours. Then last month my bank "accidentally" sent erroneous information about an account that is not even mine. Which dropped mine even further from 699 to 609, overnight. When I sent a letter from the bank president stating the fault of the error was the banks, my credit only recovered 22 of the 90 points it fell. These Credit Reporting agencies are in bed with the financial institutions to bleed as much interest from everyone as possible. After careful examination of stock holders, one will find the same names at the top of the list for Credit Reporting, Big Banking, and the Twelve charter member banks of the Fed. In fact the CEO of Chase Manhattan, also happens to be the Chairman of the Federal Reserve Bank of New York, but then again the last time disclosure of stockholders was required by congress Chase Manhattan owned a whopping 68.7% of all the charter member banks of the Federal Reserve. Read my post "FICO the Fed and Financial Institutions"

[Anonymous]

Yes I agree, they have way too much control over your lives when they have no one to answer to.

Perfect record and then drop 8 points for NO reason ???????

No rhyme or reason to any of it.

sorry for being so negative.

[jackg]

Just my opinion but it sounds as if you have joined the ranks of us "mere mortals", you temporarily forgot about an account and then someone "rudely" reminded you.

I think you'll be OK in just a few months.

Your Bof A card has a credit monitoring service attached and you probably should employ it for awhile until everything settles back to where you want it. No big deal, short detour only!

[Anonymous]

720 will get you a nice mortgage, and 760 will let you write your own ticket for a mortgage.  Now the trick of getting back there.  Your doing everything right so not much advice other than trying to GW that Amex Account.  If you can get them to remove it your golden, otherwise just keep the util that reports under (depending on who you ask) 9%.  Personally I'd shoot for 5% or under since Pif'ing is your normal thing.

Van

[Anonymous]

I wouldn't PFD...I would try to get a copy of your old report...the one with the old score of 799 and write a letter to Consumer Relations at Amex.  They can reopen the account and make a decision to report to the CRAs the mistake, you can gain your account age and erase the delinquency from your record.  I am sure someone at Consumer Relations would assist you, especially if you have zero delinquencies with other creditors and if you have a copy of your report with score from before this happened.