Striving For That 850 FICO Score? Thought You Had Perfect Credit? NOT!

By
Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

Striving For That 850 FICO Score?

Thought You Had Perfect Credit?

 

NOT!

 

This started out as a mere comment on a thread I previously read and found very relative and interesting to me personally.

                  7 secrets of a perfect credit score. 

So acting on a suggestion from, Margaret Rome, Baltimore Maryland, an Active Rain member who I respect and have had the privilege of following for the past several years, I decided to heed her advice and turn this answer into a post.
 
While it's not only unusual for seniors who've had years of building credit, paying off mortgages and myriad loans of one type or another to finally achieve that much sought after "RIGHT OF PASSAGE" for that PERFECT FICO SCORE of 850As much as you thought you arrived and as much as you think you deserve it it doesn't always seem to work out that way.

 

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. 

 

 

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John DL Arendsen, Broker, General & Manufactured Home Contractor and Dealer 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

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Comments (8)

Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

This made a great post and thanks for the mention!

Sep 26, 2015 05:58 AM
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

Yeah I've found that out too, it is almost impossible to have a constant 850. At least anything in the 800's is great now days so if we are close there should be no problems. Luckly I don't use credit for anything anymore, I prefer all cash.

Have a great weekend!

Sep 26, 2015 06:09 AM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

So many pieces to this credit puzzle when seeking perfection. Dave's knowledge and input has saved and maintained many of my customer's scores while recovering from the bubble. Long & short term benefits are available through his teachings. 

Sep 26, 2015 06:28 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

More than 20% of Americans now have a CC avg FICO score of 800 or better. If you have a steady state life style it is not difficult to achieve that near perfect score.  In fact that fellow I know made an inquiry through Equifax by their bank it shows 958 on that specific moment. As a realtor I do not even get involved, I ask for a preapprove letter from a name bank.  I prefer all cash transaction in this competitive market with 7 day COE.

Sep 26, 2015 06:42 AM
Andrzej Niemyjski
Realty One Group - Sun City West, AZ

FICO score its so complex that constant perfection is almost impossible 

Sep 26, 2015 11:54 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Andrzej Niemyjski Got that right as I've just found out. But in the overall scheme of things anything over 800 is considered excellant so it's really all relative. It just feels good when you see that nice big 850

Sep 26, 2015 12:19 PM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I had heard there is a sweet spot when it comes to credit cards.  And, that keeping a perfect credit score can be difficult.

Sep 26, 2015 02:01 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

John - I don't think anyone will ever truly understand credit scoring, just like nobody will understand Google's algorithm for SEO.

However, if you are always between 841 and 850, I don't think you have anything to worry about.

Sep 26, 2015 03:51 PM