topic Re: SCORE DROP in Credit Cards

SCORE DROP

Anonymous — Fri, 14 Sep 2007 18:03:22 GMT

i recently closed a cc account with cap1 that was about 7 years old with a cl of 5500 and simultaneously opened a new cc wtih bofa, cl of 12500. my tu fico score dropped from 740 to 705. I have a 7 year old, 15 year term installment loan, a 2 year old, 30 year term mortgage, and one other cc with a cl of 7000. i do not carry a balance on either cc. how can i boost my score back up and crack into the "excellent" rating above 750?

Re: SCORE DROP

fused — Fri, 14 Sep 2007 18:09:05 GMT

What are the balances on your CCs? Do you have any negative stuff on your reports?

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 18:12:26 GMT

i don't have balancess on either CC. both the mortgage and installment loan (student loan) are current, never late. i have one potentially derogative item on my reports: a $200 medicla bill sent to collections that is and shows paid and is supposed to fall off my report august of 2008.

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 18:17:28 GMT

INKYMIKE wrote:
i recently closed a cc account with cap1 that was about 7 years old with a cl of 5500 and simultaneously opened a new cc wtih bofa, cl of 12500. my tu fico score dropped from 740 to 705. I have a 7 year old, 15 year term installment loan, a 2 year old, 30 year term mortgage, and one other cc with a cl of 7000. i do not carry a balance on either cc. how can i boost my score back up and crack into the "excellent" rating above 750?

Well not knowing how long your second card has been open makes it hard to calculate, but let's take the first two and look at them for a moment. The one you closed was 7 yrs old and now you have a new one. This has dropped your avg credit history from 7 yrs to 3.5 yrs (this is of course an example based on just these two cards without considering any other factors). That is definitely going to cost you points. So you need to allow your new card to age 6-12 months to bring your score back up.

Next, when are say you are carrying no balance on any CCs, are you paying PIF before or after the CCC report the statement balances to the CB. And if it is after, are your utils between 1-9% on your CCs. Before I knew better, I used to max out one of my CC and PIF after the statement reported to the CB. What I did not realize was that even though I PIF every month, I was always showing as maxed out, which really knocked my score down.

Just a couple of thoughts for you to ponder. Good luck and happy FICOing!

Re: SCORE DROP

fused — Fri, 14 Sep 2007 18:25:16 GMT

In your case it's all about time and your accounts aging.

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 18:35:06 GMT

the second card has been open about 8 years. balances on cc's are paid before statement date, to insure zero balance shows to CB. i have 2 paid-off car loans as history also.

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 20:24:58 GMT

Maybe if it hasn't been to long you could reactivate the closed card.

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 20:32:20 GMT

rhinocl wrote:
Maybe if it hasn't been to long you could reactivate the closed card.

a worthwhile line of investigation.

Thank you all for your thoughts and suggestions

Re: SCORE DROP

Anonymous — Fri, 14 Sep 2007 21:07:37 GMT

INKYMIKE wrote:

i recently closed a cc account with cap1 that was about 7 years old with a cl of 5500 and simultaneously opened a new cc wtih bofa, cl of 12500. my tu fico score dropped from 740 to 705. I have a 7 year old, 15 year term installment loan, a 2 year old, 30 year term mortgage, and one other cc with a cl of 7000. i do not carry a balance on either cc. how can i boost my score back up and crack into the "excellent" rating above 750?

Firstof all closing that card is not what caused your score decrease. Even a closed trade line continues to factor into your average age of accounts. Opening the new accunt may have negatively impacted your score by reaging your average length of credit history. time is the most improtant thing and unfortunately th higher the score, usually the harder the hit.

That being said, you will recover, and 705 aint bad..