Striving For That 850 FICO Score?
Thought You Had Perfect Credit?
This started out as a mere comment on a thread I previously read and found very relative and interesting to me personally.
For the past several years now I've been bouncing around between 841 and 850 and could never figure out why all the up and down.
I have absolutely no debt and pay my balances off every month. Haven't paid interest on a balance for almost 20 years. My mortgages have been paid off for years and I don't even have a car payment. So why all the volatility?
Why don't I have a steady 850? Well, first I guess it's because of something that was said in Dave's post about what happens when you obtain a new CREDIT CARD. I recently applied for and received a Lowes Credit Card because it offers an additional 5% discount off of any purchase and as general contractors we purchase a lot at Lowes.
However, right after receiving the card I was notified that my FICO score dropped by 9 points. Dang! Talk about penny wise and point foolish. I'll never do that again. I've been fine with my AmEx for Costco purchases and 2 Visa's for several years now.
Then I found out from my Chase Visa account rep that even though I pay my Credit Card's off every month it's the activity that the Credit Card reporting companies see at the time they look at your history that affects your score.
Because we use our CC's in our biz on a daily basis and charge in the 6 figure range almost every year (lots of rewards points there) and they hone in on the balances intermittently during the month they could see a 0 balance or one in the 10's of thousands of dollars and that can impact your score.
Bottom line there are so many nuances and variables that even Dave's very comprehensive and well written post hasn't factored in when it come to figuring out your FICO score that it can get very frustrating.
But as his post so clearly stated a FICO score of over 800 probably only influences the insurance companies and certainly won't impair your ability to qualify for just about any type of credit you want.