Is FICO ever wrong? I think my score should be higher

[Anonymous]

I have an excellent credit score (797) so I'm a "high achiever", but I want to be an "overachiever".  My credit behavior is so good that I don't understand why I don't have an 850.

The three criticisms are: (1) The amount owed on your revolving/charge accounts is too high (2)

You have too many bank/national revolving accounts with balances being reported (3) The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too high

However (1) I only owe $3,773, how can that be "too high" ??? (2) I have eleven cards so I do understand that they think that's too many.  Why?  How many cards am I "allowed" to have? Most of them are just store credit cards I opened to get discounts and special deals.  I heard that it's also bad if I close them ???  Geez, you can't have them AND you can't close them ??? (3) the balance to crrdit limit ratio is only 5% what's wrong with that?

Mortgage 1 $84,280 $0 $160,000 53% $1,286 1

Installment 0 $0 N/A N/A N/A $0 0

Revolving 11 $3,773 $75,127 $78,900 5% $113 3

Other 0 $0 N/A N/A N/A $0 0 Total 12 $88,053 $75,127 $238,900 37% $1,399 4

[MidnightVoice]

Well, no one has an 850 

Once you get to the high 700's the reasons are pretty silly - they are just thinking of things to say.

What is your utilization %?  This is one of the major determinants of actual score

[Junejer]

Hello Imthemom, and welcome to the forums. Please read Credit Scoring 101, if you haven't already.

First, achieving an 850 (the max) is extremely difficult, as any little thing will knock you out of there once your score is up that high. Secondly, your 797 is nothing to sneeze at. It is an excellent score. Next, I believe that you will probably go over 800 if you only allow one card to report a balance each month. Your util is fine, I think that allowing three cards to report a balance is what's keeping you out of the 800 club. Focus on reason #2 and I think you'll be fine for over 800. Now, moving to 850, that's another situation.

Edit: out-typed by the brief one

Message Edited by ByrdMan on 01-12-2009 09:59 AM

[Anonymous]

Thanks for your quick and helpful answers.  I understand what you're saying about "no 850 for anyone" but I think that's crummy LOL !!!

What does utilization % mean, is it calculated and printed on the report somewhere? Is that the same thing you were saying re: how many cards I used (i.e. I used 3 out of my 11).  So, you're saying that I should only use one credit card at a time, pay that monthly balance, then use a diff card the following month?

Also, what are the advantages and disadvantages of closing an account?

And, for one of the three cards that were used, I'm an authorized user on my son's credit card.  He is the one who uses that card, not me.  What if I just take my name off his card as an authorized user?

[Junejer]

Util is the % of balances vs. CLs. So, your 5% util is related to your $3,700 balance vs. $75,000 of available CLs. With your avail CL, you don't need to be an AU on anyone's card (or is it actually the other way around?). In fact, you can use all 11 cards monthly, if you want to, just be sure to pay all but one IN FULL BEFORE THE STATEMENT CUTS. Then, after the statement cuts, you can PIF the remaining card. Most recommend that you rotate the cards every few months, so as not to have them go inactive. This rotation thing is difficult for me, that's why four MC/Visa logoed cards are more than enough for me.

[smallfry]

850 is pretty elusive. You might reach it then find they drop your score a bit if you haven't applied for any credit in some time. Someone  correct me if I am wrong on that but I believe I read that comment on a board once. So if you don't apply you get dinged then once you apply you get the inq ding and the new account ding. LOL. 

[Junejer]

If one were to reach 850, then I would imagine that they might lose points for the sky being too cloudy or too blue for that matter. Scores in the high 700s and 800s are very touchy to new credit.

[Anonymous]

Grrrrr...what I wouldn't give for your 797!

Message Edited by melanie2009 on 01-12-2009 03:46 PM

[Mark_in_Pasadena]

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@Anonymous wrote:

I have an excellent credit score (797) so I'm a "high achiever", but I want to be an "overachiever".  My credit behavior is so good that I don't understand why I don't have an 850.

The three criticisms are: (1) The amount owed on your revolving/charge accounts is too high (2)

You have too many bank/national revolving accounts with balances being reported (3) The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too high

However (1) I only owe $3,773, how can that be "too high" ??? (2) I have eleven cards so I do understand that they think that's too many.  Why?  How many cards am I "allowed" to have? Most of them are just store credit cards I opened to get discounts and special deals.  I heard that it's also bad if I close them ???  Geez, you can't have them AND you can't close them ??? (3) the balance to crrdit limit ratio is only 5% what's wrong with that?

Mortgage 1 $84,280 $0 $160,000 53% $1,286 1

Installment 0 $0 N/A N/A N/A $0 0

Revolving 11 $3,773 $75,127 $78,900 5% $113 3

Other 0 $0 N/A N/A N/A $0 0 Total 12 $88,053 $75,127 $238,900 37% $1,399 4

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I have 815+ on all my FICOs.... If you'd like to join the 800+ club, then do the following (tailored especially for you): 

1.  Pay off all your credit cards, except for 1 cc,  to $0 balance online, 1 day BEFORE your statement posts, since that's what will get reported to the credit bureaus.

2.  On only 1 credit card leave a small $10 balance (or any amount less than 2% of your credit limit).

This above will bring up your score 10-20 points.

Your FICO score will slowly continue to improve over the years as your mortgage is paid off.  Once you owe less than 20% on your mortgage, you'll see the biggest increases.

This is all just academic though, since anyone with a 760+ already qualifies for the best rates on all types of credit.

[marty56]

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@Anonymous wrote:

Also, what are the advantages and disadvantages of closing an account?

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No advantage other than avoidng monthly and or yearly fees.  Closing any account could lower your score because your AAoA could go down.  Also some CCCs wont offer you a another product if you had an account with them and closed it.