Help with getting to 800....so close and I took a step backwards.

[Anonymous]

Not sure what to do here.

Last week I was at:

Experian: 785

Equifax: 789

Trans Union: 797

Today

Experian: 785

Equifax: 785

Trans Union: 789

Last week I added two lines of credit.

I got credit for two new iMacs at BestBuy.

I also want to make about a $1000.00 purchase so I applied for and received a Capital One CC ($15,000.00 CL), interest free for 6 months.

Today I find out my score took the hit.  Not happy.

Do I have too much available credit?  Is there such a thing?

Here's what I've got, any advice would be appreciated.

Close some accounts or leave alone?

AMEX Gold: ......Not sure of limit.......zero balance

Citi M/C: ............$15,000.00 limit.......zero balance (rarely use)

US Bank Visa:....$17,500.00 limit.......zero balance

B of A Visa:........$25,000.00 limit.......zero balance

DiscoverCard:.....$9,700.00 limit.........zero balance (never use)

Sam's Club:........$6,500.00 limit.........zero balance (never use)

Macy's:..............$6,000.00 limit.........zero balance (never use after furniture was paid off)

New

HSBC (BestBuy)...$4,600.00 limit......$2,600.00 balance, 18 months interest free

Capital One..........$15,000.00 limit.....haven't used it yet

That's a little over $99,000.00 in available credit, obviously I don't need it.  Is this foolish?

Thanks for the advise. 

Message Edited by want800 on 02-25-2010 04:25 PM

[elaine829]

Hi, Your scores went down probably because of your utilization, did bestbuy report to your credit report yet. If so that means your utilization went up to 50 percent which would drop  your score. Your balance is 2600 and credit limit is 4600. I wouldn't close any accounts.

[Anonymous]

Elaine,

Thanks for the reply.

Yes Best Buy already reported.

So, you're saying because I have more than 50% of my limit charged to this one account, this may have happened?

As I pay it down, the score will go back up?

My current cards are fine?

I'm so confused.....I was so close to the elusive 800......dag nabit!! 

[lkcrew426]

Yes, your utilization went WAY up. You went from close to nothing judging by the zero balances to close to 50% - like was said earlier. You need to try to stay below 30%, but it's best to be under 10% (each card, and altogether) The "high achievers" have an average of 7%.

As you pay them down, the score should go back up. Typically as utilization decreases your scores increased, but you may have also affected your AAoA - which can ding you a little. 

[MarineVietVet]

Hello and welcome to the forums.

One thing I will ask is where did you get those scores? No one has been able to pull their own Experian FICO score since last February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[elaine829]

I think your current credit cards are fine just let them age. Pay down your balance and your scores should go back up. I wish i had your scores, if i had your scores i wouldnt even worry about my ficos.

[Anonymous]

Marine,

OK I am probably going to make a fool of myself here, but that's OK, I'd rather "learn" than "be right".

I got my credit scores from equifax.com.

I pay a monthly credit monitoring fee and can access my scores all the time.

I get notified if anything on my CR changes. 

From what you are saying, these aren't "real" scores?

This is the first I've heard of this.

Real FICO scores?  Please explain....... and thank you..........boy do I feel like a credit newbie.  I thought I was doing pretty good.

[MarineVietVet]

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@Anonymous wrote:

Marine,

OK I am probably going to make a fool of myself here, but that's OK, I'd rather "learn" than "be right".

I got my credit scores from equifax.com.

I pay a monthly credit monitoring fee and can access my scores all the time.

I get notified if anything on my CR changes. 

From what you are saying, these aren't "real" scores?

This is the first I've heard of this.

Real FICO scores?  Please explain....... and thank you..........boy do I feel like a credit newbie.  I thought I was doing pretty good.

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Unless something has changed, when you pull all three scores at Equifax's website, only the EQ score is a FICO, the other two are FAKOs. FAKO is a term used to describe credit scores based on different formulas than FICO scores. FICO is the standard used by most lenders so the "FAKO" scores have no relationship whatsoever to FICO. The fact that your scores are so close together is pure coincidence.

If you look closely at the Equifax website you will see that only the Equifax score uses the word "FICO". The same goes for many other sites offering "credit scores". If you don't see the word "FICO" anywhere you are not getting true FICO scores.

The monitoring services offered are legitimate and do cover all three CRA's but the only FICO score you get at Equifax.com is the Equifax score.

By the way your Equifax score is very good. You should be pleased wth that.

I would continue to work on lowering that utilization. 

Optimal credit utilization for FICO scoring purposes seems to be:
Total revolving utilization > 0 and < 9%, the lower the better, and
Reporting a balance on less than half of your revolving TL's, and
Reporting a balance on half or less of all TL's.

I'm not very good at explaining things sometimes. There are true experts here who can probably do a much better job. If I've confused you even more please let me know and I will attempt to clarify.

[Anonymous]

Marine,

Thank you very much.  I think I understand this much better.

Since I am already signed up with EQ's service and at least "their" score is an accurate FICO number, I don't see a need to spend additional money on the FICO service.  I hope I'm not too off base with this? 

I sort of understand the "utilization".....  Regardless of how much TOTAL available credit I have ($99,000.00), it only takes a 10% balance of available credit on ONE credit card to result in negative affects on my FICO score.  Did I express the correctly? 

Since I'll have the BestBuy balance paid off within a year I should be OK with my number going back up, correct? 

I apologize for what to you most likely seems like very basic questions and I do appreciate the assistance.

Message Edited by want800 on 02-25-2010 08:34 PM

[MarineVietVet]

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@Anonymous wrote:

Marine,

Thank you very much.  I think I understand this much better.

Since I am already signed up with EQ's service and at least "their" score is an accurate FICO number, I don't see a need to spend additional money on the FICO service.  I hope I'm not too off base with this? I've never used one of those services so I can't offer advice on what is best. I will let others do that.

I sort of understand the "utilization".....  Regardless of how much TOTAL available credit I have ($99,000.00), it only takes a 10% balance of available credit on ONE credit card to result in negative affects on my FICO score. 10% might be a tiny ding but not enough to be concerned about. You are in good shape.

Did I express the correctly? FICO looks at overall utilization and individual utilization so you have to be mindful of that. With your score you no longer need to worry about a few points believe me. Just remember about optimal utilization.

Total revolving and individual utilization > 0 and < 9%, the lower the better, and
Reporting a balance on less than half of your revolving TL's, and
Reporting a balance on half or less of all TL's.

Since I'll have the BestBuy balance paid off within a year I should be OK with my number going back up, correct? Every time you reduce that balance your utilization will decrease and your score will improve.

I apologize for what to you most likely seems like very basic questions and I do appreciate the assistance. No need to apologize for anything. No one here has all the answers and we all ask for help from time to time. That's the reason for these forums. 

Message Edited by want800 on 02-25-2010 08:34 PM

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