785 FICO Score
We’ll once again, breaking my own strategy to keep my credit score high led to a FICO credit score decrease. This time it was by 7 points to 785. What’s different?
- I let my American Express bill run up to over $3,000 for the month. Normally, I pay it off twice per month to make sure I keep the balance low. Remember that credit utilization or the ratio of credit used each month divided by your credit available is a crucial credit score factor.
- I didn’t use one of my credit cards for over 12 months and now it’s been closed. I warned against this in my post on closing down credit cards hurts
The good news is:
- My credit score is still high enough to get the best rates at 785
- I can overcome the recent decline in one month by paying off my balances more quickly. I might adjust and pay them off every week versus every two weeks to see the impact. Remember that payment history is a crucial part of the credit scoring module.
- The card that closed down had a small limit.
A 687 Credit Score could mean higher interest rates and higher payments. Is your score a FICO credit score? You can start watching it for free using a Free Trial product called Score Watch.
This 687 Score is:
- 73 points lower than the highest break point of 760 FICO credit score to get the best interest rate loans according to myFICO.com.
- 163 points lower than a perfect 850 FICO credit score.
- 687 score would be a “D” rated score on the VantageScoreSM, scale.
- 303 points lower than a perfect score in the VantageScoreSM scoring model
- 214 points away from the best tier of 901+ for VantageScoreSM
- 143 points away from a perfect score on the PLUS score system, which scale goes from 330 to 830.
Which credit score did you get? Check out my post on what a credit score includes. If you have a non-FICO score, you should probably get your FICO credit score to see what most lenders see. myFICO Score Watch monitors your FICO score by delivering email alerts and cell phone text message alerts each time your FICO score changes.