Help me understand my point drop

[Anonymous]

In April my FICO was 756.  Today it is 738.  I am going for a mortgage preapproval very soon and (according to the bank) I will get the best deal if I am avbove 750.

Here is a break down of how my credit file has changed since April:

FICO 756 (April)

Open accounts

Citi (revolving) balance $450 with 7500 limit

Chase (revolving) balance $100 with 2100 limit

Amex green no limit reported (listed as credit card) $10 balance, historical high balance at that time was $118

Circuit City charge (revolving) $0 balance with $2500 limit.

Nissan auto installment loan $2 balance with a high balance of $18,000 (actually $0 balance and closed but not reported that way to the Bureaus yet.

FICO 738 (today)

Open Accounts

Citi (revolving) balance $175 with $8000 limit

Chase (revolving) balance $262 with $2100 limit

Amex Green no limit reported (listed as credit card) $157 balance, also reporting as the highest historical balance

Nissan auto installment loan $2 balance with a high balance of $18,000 (still reporting this way.  The account is PIF since March).

You will notice the Circuit City charge is no longer open.  They closed  due to the closing of the store.  It had a  $0 balance.

Here is what I don't understand.  FICO listed 2 items as "things hurting your score" on the scale.  They were  "Too many accounts with balances" and "heavy usage of credit cards".  Both of these items were never present before today.  The reports said my total utilization is 6% and FICO high achievers have total utilization of 7% or below. My utilization is not high, so why does FICO say it is?  When the Circuit city card closed I lost $2500 of avail credit, but my utilization is STILL only 6%.  This makes no sense.

As far as the "too many acccounts with balances"... I have 4 open accounts with 4 tiny balances.  Is this bad in the eyes of FICO?  When I had 5 open accounts I had 4 small balances reporting and FICO never flaged that as too may with balances.

I have a feeling my AMEX green is mucking this up in the "heavy credit card usage" area.  Is it possible that FICO thinks my AMEX is a maxed out credit card, since it has a current balance of $157 against a $157 high balance with no reported limit?

Thanks for any input!  I really need to bring my scores above 750 for the best terms in my mortgage

[llecs]

The Amex could be a factor. Maybe someone else can chime in. But I'd suggest getting Amex to report $0.

Another possibility, which could result in significant point loss, is the closure of your Circuit City CC. If this was a store charge card, then its closure would have negatively impacted your mix of credit because you now lack a charge card. What about Amex, you may ask? Your Amex is lumped into the revolving mix.

Finally, once paid, your car loan was removed from your mix of credit. If you don't have any open loans, this may also be a small source for points lost. I just paid of my last installment loan (car) and TU FICO dropped by 5 and EQ FICO increased by 7. In other words, the car helped TU and hurt EQ.

[Anonymous]

Thanks for the reply.

My auto installment loan is still reporting open to all three bureaus, so that would not have a negative effect on mix.

My amex will report 0$ when the statement cuts this month.

  My question was about what FICO is saying are the factors that are hurting my score.

1. Too many accounst with balances

2. Heavy credit card usage (high utilization)

I can understand the negative factor about "too many accounts with balances".  4 out of 4 have balances.  Even though they are very small balances.

I cannot for the life of me undertsnd why FICO list high utilization as a negative factor that is hurting my score.  It says I have a 6% utilization.  Thats too high?

[llecs]

Even if reporting open, any installment account is removed from the mix if reporting $0.

I didn't think about the balances. That's a biggie. Ideally you'd want 2 of the 3 open CCs to report $0.

Your bucket is a big factor. If you go add a collection account or lates, that negative comment about utilization would instantly be a positive comment. More people who have a history similar to yours have a lower utilization than you do now.