I got a score alert from my Wamu credit card that said I had a credit score of 853. But, wait. Haven’t I been saying that FICO scores max out at 850. While is true for the mortgage scores, this is not the case for the auto industry scores and the bank card scores. These FICO Scoring models go from 250-900.
Man, I was feeling all special with my 853. Now, I know it’s really good, but not as good as it can be. Ironically, I’m not sure why my score rose 22 points. On my myFICO Score Watch account, my FICO fell by 7 points and has been falling from my recent 800 peak of a few months ago. Plus, I know why. So I’m unclear what the bank card sees as being better behavior here.
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.