Credit Scores

[RachelEllen]

Hi,

Does anyone here know about credit reports? I remember reading some really knowledgable info a while ago.

I'm looking into getting a mortgage and there's a really attractive one I want, but it requires a score above 750. Last time I had checked, my scores were there, but now they are in the 700-720 range. There have been no problems with my scores (no late payments, nothing) , but I did close a credit card (with a large line of credit I didn't use) and opened two smaller ones. It looks like I have 3 inquiries about to drop off my report (within 30 days), so I'm sure that will help.

Could these have dropped my scores that much? Am I dropping my scores by checking my own reports (I had thought pulling your own reports wasn't a negative). Now that I closed the large credit card, I don't have very much credit at all. Perhaps that is a problem? But, I don't know if the better thing is to raise the limit on a card (which will cause an inquiry, but will also drastically lower my available credit to debt ratio)

It's rather frustrating, as I consider myself to have 'perfect' credit. Is there any way to bring my scores back up? How quickly can this happen? Anyone know??

 

[BriarfoxinWA]

Well 700-720 is a really good credit score. I'm not an expert but I do see a lot of credit reports - I'm a commercial lenders (business and agriculture mostly). Checking your own report shouldn't have any effect at all on your report. If you don't have any late payments and the amount of credit available on your cards isn't excessive You also need to know that some lenders - like the bank I work for will pull all three available bureaus and used the middle score. Have you looked at all three reports?

Highest credit score I have ever seen was 810 and the individual was a multi-millionaire that did not use credit. He had one or two things on his report and virtually no inquiries...

 

[Galahad]

I think it's the closing and opening of accounts, but I'm not entirely sure how it works. We opened an equity line a few months ago. When they pulled the numbers mine was 770 and DW's was 784. After they opened the line they both dropped even though we haven't used it (the credit line) yet. Then a few months later they went up again.

 

[ducklite]

Well 700-720 is a really good credit score.

I beg to differ. That's a good score, but far from really good. Really good is 750 and above.

Anne

 

[Kahana-ri]

Check out www.creditboards.com. They discuss EVERYTHING regarding credit.

 

[DVCJEN]

Credit scores also take into consideration your "open to buy" --meaning how much credit you have out there compared to how much you actually use. Closing a larger line that you rarely used and then opening two smaller lines probably hurt you. For example, if you had a 10K line and were only carrying 3k on it you were at at 30% usage. But if you have two card totalling 5K and you are using 2500. you are at a 50% usage. Having 30% usage is better than 50% usage. That does not mean however, that you should open up a number of cards and have huge amounts of available credit. It is all a balancing act. Your score can also be different agency to agency and month to month.

 

[Boston Tea Party]

Check out www.creditboards.com. They discuss EVERYTHING regarding credit.

I second the Credit Boards recommendation.

 

[RachelEllen]

Thanks for all the advice. I will check out the credit boards. I agree with the person who said 720 is a 'fair' score. Simply because having less than 750 is really affecting what sort of loans I can get. And it's frustrating that your score can be anywhere from stellar to simply fair even having no late payments or obvious 'problems' (And extra frustrtaing as 3 months ago, I had 750!)

I wish the scoring wasn't such a mystery. I know all the principles, but I have no idea what the best thing, in reality, is to get my scores back!