I have been diligently watching my FICO score for years now. I have a mortgage which I have paid on time or early for 2.5 years, I have 2 credit cards both with WAMU which have a total balance of about $1,500 (limits total about $20k) and I have no other debt. This CC debt is down from about $4,000 just 3 months ago. I just paid off my car in November (hence the rapid paydown of the CC debt). All of this time I have been watching my FICO score rise which WAMU posts for me to see online. In Jan my score according to WAMU was 765 (TransUnion score). I just checked it today and it said 736!!!
I will be getting all 3 scores via MyFico very soon, but ...
Tell me this - why did my score go DOWN by almost 30 points in one month. According to the WAMU website, the reason for the score change is...
There is a lack of recent (non-mortgage) installment loan information being reported on your credit file
Demonstrating that you can manage a variety of different types of credit responsibly is a behavior the score evaluates. In particular, the score may examine your repayment behavior on some types of personal loans (but usually, not including mortgage or other big ticket loans, which are examined in other ways). Having no personal loan accounts appearing on the credit bureau report, or if they are present but are closed or are no longer being reported by the lender, is a slightly higher risk compared to currently having an installment loan and making payments on it. The score evaluates the types of credit in your credit history, and considers your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It isn't necessary to have one of each, and it's not a good idea to open credit accounts you don't really need, or don't intend to use.
Source: Fair Isaac
Am I being penalized because I only have a mortgage and 2 credit cards but no car loan? This seems insane to me!! And I'm rather angry that my credit score in the "really good" range has gone down to the "pretty good" range when I anticipate needing a new car in about a year.
Help please? TIA
