topic Re: Schwab credit score question in Personal Finance

Schwab credit score question

Anonymous — Wed, 29 Apr 2020 06:34:05 GMT

I currently have a Schwab account that I love, my question is, would they close from a Chex report that I paid 6ish months ago? And would they close it because my credit score dropped to 570 according to credit karma (although I read not to use this because it's just a guess?) And 657 on FICO from a 92% credit utilization. I'm planning on getting the utilization lowered to atleast 30% this month though. I just had 2 tires blow out and the tires + alignment + school expenses from covid19 put me in a hole for the month. Also how would this affect my ability to apply for a new CC in the next few months? Thanks!

I love my Schwab account and want to keep it, they have been nothing but good to me. I want to make them my forever bank.

Re: Schwab credit score question

TheFIGuy — Wed, 29 Apr 2020 10:39:14 GMT

@Anonymous wrote:
I currently have a Schwab account that I love, my question is, would they close from a Chex report that I paid 6ish months ago? And would they close it because my credit score dropped to 570 according to credit karma (although I read not to use this because it's just a guess?) And 657 on FICO from a 92% credit utilization. I'm planning on getting the utilization lowered to atleast 30% this month though. I just had 2 tires blow out and the tires + alignment + school expenses from covid19 put me in a hole for the month. Also how would this affect my ability to apply for a new CC in the next few months? Thanks!
I love my Schwab account and want to keep it, they have been nothing but good to me. I want to make them my forever bank.

One I want to say sorry to read you're having a rough time during this pandemic, I hope you're able to recover stronger than before!

From my understanding, Schwab bank pulls your credit only when you apply for an Investor Checking + Brokerage One account. I have not read any DP's stating they do SP account reviews on individuals randomly. Now, if you decided to apply for another Investor Checking + Brokerage One account they would pull EQ then.

If the score decrease is primarily due to HIGH utilization then your score would effectively rebound once you dip under 30% utilization again. Lenders only get a snapshot of your credit history when you apply for a CC typically. So the past utilization is not shown to them. FYI, optimal utilization is around is 9% across all accounts if I'm not mistaken.

Goodluck!

Re: Schwab credit score question

M_Smart007 — Wed, 29 Apr 2020 15:37:33 GMT

@Anonymous

I did answer a very similar question Here:

https://ficoforums.myfico.com/t5/Credit-Cards/Bank-account-charge-off-and-credit-card-application-question/m-p/6003412#M1717686

Charles Schwab is a "Brokerage Firm" not a bank!