topic Re: Why Manage FICO Score Month to Month? in General Credit Topics

Why Manage FICO Score Month to Month?

Anonymous — Wed, 04 May 2016 14:22:18 GMT

In reading a lot of posts here I note that people do things like paying off a credit card at strategic times so the lowest possible balance is reported to credit agencies. I'm not sure I understand the motivation for this. Is there some a cumulative aspect to one's FICO score? I thought it was just a snapshot of current financial status--if so, why not only worry about gaining or losing a few point when you're applying for specific credit?

Re: Why Manage FICO Score Month to Month?

driftless — Wed, 04 May 2016 14:36:13 GMT

It is micromanaging but don't forget that many of us have had credit issues in the past. Being slightly obsessed about credit provides the discipline and focus many need to maintain and improve their credit.

Re: Why Manage FICO Score Month to Month?

MyLoFICO — Wed, 04 May 2016 14:49:17 GMT

Re: Why Manage FICO Score Month to Month?

Anonymous — Wed, 04 May 2016 15:16:11 GMT

Score peacocking. Having a 740 is no big deal if you are not trying to get another account! Everyone is browsing the approval section and longing for the next conquest.

Re: Why Manage FICO Score Month to Month?

MyLoFICO — Wed, 04 May 2016 15:20:17 GMT

@Anonymous wrote:
Score peacocking. Having a 740 is no big deal if you are not trying to get another account! Everyone is browsing the approval section and longing for the next conquest.

What? You got approved? For what? TELL ME NOW SO I CAN GO APP!!!!! Feed the need!!!

Re: Why Manage FICO Score Month to Month?

Anonymous — Wed, 04 May 2016 15:29:09 GMT

Also, credit reports/scores are used for screenings these days such as when applying for a new job, property rental, insurance, etc.

Re: Why Manage FICO Score Month to Month?

kdm31091 — Wed, 04 May 2016 15:31:12 GMT

IMO unless you have a major app or loan coming up there's no real reason to worry about it every month, but some people enjoy optimizing. For me it's not worth the time/effort vs the gain which is often minimal. YMMV

Re: Why Manage FICO Score Month to Month?

sr383 — Wed, 04 May 2016 15:33:52 GMT

My goal is to have sufficient limits with the cards I use, such that, at any point in time, my utilization is always below 10%. Creditors will get one payment, when that payment comes due.

Re: Why Manage FICO Score Month to Month?

driftless — Wed, 04 May 2016 15:46:28 GMT

FWIW - I have few cards and high usage. I PIF every month and every card is set on autopay.

Re: Why Manage FICO Score Month to Month?

barthooper — Wed, 04 May 2016 15:53:47 GMT

There are only two times when I'll manage month to month. If I'm about to go for another card or other loan in the next month, or to optimize just to see how much of a boost I can get from optimizing, in anticipation of a card/loan in the future.

Re: Why Manage FICO Score Month to Month?

Anonymous — Wed, 04 May 2016 16:19:18 GMT

Managing ones scores from month to month may be one extreme, but it's a better extreme than the other which is never looking at ones scores. I can understand that both of these groups are the outliers, although in this forum naturally more are part of the first group. I get it that the mass majority fall somewhere in the middle. It is however without question a better option to be part of the first extreme group rather than the one that knows nothing of their scores.

Re: Why Manage FICO Score Month to Month?

Loquat — Wed, 04 May 2016 16:22:56 GMT

To some it can seem like micromanging but I don't really see it that way. I check my score often because it doesn't take much effort to do so. A few strokes on the keyboard and a couple of clicks on a mouse and it's there in front of me. I don't see it as being a waste of time no more than the amount of time spent checking a Facebook or Twitter feed...or even browsing this site for that matter. Some people are comfortable with checking every now and again...and maybe I'll get there someday...but after spending a long time in the low 500's it's nice to have a score that doesn't make me want to curl up and cry.

Re: Why Manage FICO Score Month to Month?

MrsCHX — Wed, 04 May 2016 16:52:52 GMT

For those of us rebuilding, it's obvious...you want (need) to see that score increasing

Otherwise, while we know that utilization is just a snapshot, lots of people have been reporting adverse action by one CC company based on high util on other cards. But I think once you have your limits high enough, this is less of an issue.

Right now my Cap One cards have a $800 limit. I am using my QuickSilver1 for groceries and other incidentals, and paying each pay period, because I know that won't exceed 30% utilization. Once that limit gets higher I can be less worried about multiple payments and paying before the statement cuts.

E.g., I will pay off this week's charges tomorrow because my statement date is the 9th.

Re: Why Manage FICO Score Month to Month?

p- — Wed, 04 May 2016 16:57:40 GMT

I only did that while I was rebuilding. Now I check my scores about once yearly but still keep an eye on the reports for incorrect info.

Re: Why Manage FICO Score Month to Month?

Anonymous — Wed, 04 May 2016 17:50:36 GMT

For me it is a twofold, there is yes, A) Wanting to see progress and scores moving up, but then, B) When I see my scores moving up it greatly reduces any urge to app for a new card because I don't want to take the points hit for a new INQ, new card, and impact to AAoA.

Re: Why Manage FICO Score Month to Month?

JustBPatient — Wed, 04 May 2016 19:32:50 GMT

Its a hobby like anything else. There are so many moving parts that keep it interesting!!

Re: Why Manage FICO Score Month to Month?

Pway — Wed, 04 May 2016 20:35:12 GMT

@kdm31091 wrote:
IMO unless you have a major app or loan coming up there's no real reason to worry about it every month, but some people enjoy optimizing. For me it's not worth the time/effort vs the gain which is often minimal. YMMV

^^^^This. I don't either. I did about for some time but then I stopped. When I was discharged from BK about two years ago, I used to follow my scores very closely and I was checking them all the time. I don't even pay for my scores any longer, I use ck to monitor my reports.

I will purchase them only when making a large purchase other than that I don't.

Re: Why Manage FICO Score Month to Month?

Thomas_Thumb — Wed, 04 May 2016 23:28:26 GMT

@Anonymous wrote:
In reading a lot of posts here I note that people do things like paying off a credit card at strategic times so the lowest possible balance is reported to credit agencies. I'm not sure I understand the motivation for this. Is there some a cumulative aspect to one's FICO score? I thought it was just a snapshot of current financial status--if so, why not only worry about gaining or losing a few point when you're applying for specific credit?

Looking at scores monthly is key to tracking progress over time and adjusting strategy as needed to achieve goals.

However, you are 100% correct in optimizing strategies such as: one card reporting and single digit revolving CC utilization. They need only be adopted a couple months prior to applying for new credit. Both are point in time impact with no lingering effect.

Re: Why Manage FICO Score Month to Month?

RonM21 — Thu, 05 May 2016 09:52:43 GMT

Combined with all of the other answers in which I agree, simply for me it;s because I've rebuilded and it's grown into a habit. But one I'm not willing to let go because that's how I got in the mess I was in, in the first place lol. Plus I'm learning that sometimes, every extra point can make a difference.

Re: Why Manage FICO Score Month to Month?

takeshi74 — Thu, 05 May 2016 12:58:05 GMT

@Anonymous wrote:
I'm not sure I understand the motivation for this. Is there some a cumulative aspect to one's FICO score? I thought it was just a snapshot of current financial status--if so, why not only worry about gaining or losing a few point when you're applying for specific credit?

Some just choose to do so and for varying reasons. Some are just doing it for bragging rights. Some are doing so out of obsession. There are plenty of other possible reasons as well.

Some factors are cumulative, some are not. As just one example, revolving utilization is not cumulative yet there are those who choose to constantly manage it even if not applying for new credit, CLI's etc.

Ultimately you have to determine what works for you based on your goals, preferences, priorities etc and an understanding of how your profile is assessed. I keep an eye on the FICO's that I get from my creditors but I don't really micromanage. However, my scores generally wouldn't see any significant improvements from such actions and I'm happy with the range my FICO 8's tend to be in.

@Anonymous wrote:
why not only worry about gaining or losing a few point when you're applying for specific credit?

I don't recommend just obsessing over the numbers but focusing on report data. If one choose to obsess over the numbers I suggest setting a larger threshold of at least 20 points as scores will fluctuate a bit just from normal activity. However, again, it's up to each to decide such things. If one chooses to fret over a few points it really has no impact on me.

@driftless wrote:
It is micromanaging but don't forget that many of us have had credit issues in the past. Being slightly obsessed about credit provides the discipline and focus many need to maintain and improve their credit.

This too. Always consider the source.

@Anonymous wrote:
Also, credit reports/scores are used for screenings these days such as when applying for a new job, property rental, insurance, etc.

True but what's being considered will differ from what a creditor considering whether or not to issue a card and set terms is going to be looking for. Obsessing over a given score may not have quite the same benefit for these considerations.

@MrsCHX wrote:
Otherwise, while we know that utilization is just a snapshot, lots of people have been reporting adverse action by one CC company based on high util on other cards.

The two are definitely not mutually exclusive. Anything on one's credit report can be considered by one's creditors. High revolving utilization isn't the only thing that can lead to AA.