FICO Credit Score Tracking #8 - What the Deuce?
Posted by Cap in Credit Related on February 21, 2008 |FICO Score Tracking #1 | #2 | #3 | #4 | #5 | #6 | #7 | #8
- Number of accounts opened: 8
- Inquiries: 1
- Total revolving balances: $12,000
- Total available credit: $96,450
Woah, what happened in January?
That’s what I was wondering too when I logged into my credit profile page within my WaMu/Providian credit card account.
As some of you know, I have been tracking my FICO credit score for the past few years. The last update was back in April of last year, and things have been pretty steady since. The dip from March ‘07 to April ‘07 was due to a large balance transfer offer that I took advantage of while opening a new Chase Freedom credit card (also received a $100 cash-back bonus).
Since no major changes have occurred to my credit profile since April of last year, the credit score should still be hovering around the same ranges. So what happened around January? Identity theft? Forgot to pay some obscure bill? Collection attempt that I wasn’t aware of?
A quick check with my free annual TransUnion credit report reveals an interesting update to one of my credit card account (ironically, the very credit card account that provides the credit score service):
My PayPal-branded-Providian-credit-card-turned-WaMu-card has had its credit limit lowered from $3,000 to $250. There is also a remark reading: “Dispute resolved reported by grantor.”
This is most likely due to a $37 fraudulent foreign transaction charge that appeared on this account back in November of 2007. Long story short, I never used the credit card and I was carrying a balance I wasn’t aware of. Except a post detailing WaMu’s horrid fraudulent charges claim process in the near future.
Other factors that may have contributed to the almost 100 point drop:
- Higher credit card balance from big-ticket charges during the month
- Some very short term balance transfers that may have appeared on two accounts at once
It’s a bit unfortunate that I didn’t notice the drop in score earlier, else I could have checked what factors were contributing to the change. Just in case you’re curious, the list below shows some of the factors that can also negatively affect your score.
Factors that Could Affect Your Credit Score Negatively:
- Late payments. Especially 90+ day late payments.
- Collections and other negative items. Stays on your report for 7 to 10 years. Pay your bills kids and all will be peachy.
- High balance. Try your best to keep debt-to-limit ratio under 10%. The higher your ratio, the more your score takes a ding.
- Too many new credits. Affects your overall average credit age and can reduce your credit score.
- Too many one type of account (e.g., credit card accounts aka revolving accounts). A good mixture of credit type ensures a better score.
- Inquiries. Too many hard credit pulls will hurt your score and hard pulls stays on your report for two years.
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February 22nd, 2008 at 6:07 am
I think it’s great that you stay on top of this! It’s been on my list of “things i always forget to do” but perhaps it’s time to check in once and for all.
February 22nd, 2008 at 11:26 am
According to Dave Ramsey, credt scores are debt lovers’ scores. I only keep up with mine in order to monitor any potential id theft. I don’t worship at the Altar of the Great FICO. We’re almost debt free!!!
I realize every argument in the book for why one should have “good credit”, but if you don’t borrow $, who cares about credit scores? Not me! One less thing to worry about. Spend less than you make, I say.
You can buy a house w/out having borrowed $ in a while. In the 70’s credit cards barely existed.
There is something that most people don’t do much of anymore, and that’s called “saving.” Save for the car before you buy it people.
There’s a funny SNL skit that Steve Martin did about not buying things you can’t afford.
February 25th, 2008 at 11:44 am
I track my credit report only for theft identity monitoring purposes. Other than that, I see my FICO as something that doesn’t come into play until I need credit.
Of course, the closer I get to buying a house one day, the greater the effort I will need to take to ensure the score remains high.
-Raymond
February 28th, 2008 at 9:07 am
That $37 fraudulent charge is exactly why you should check your credit report annually for errors. Personally, I check mine once a quarter (every 3 months). I found some errors on my report and was able to get them removed. I look forward to seeing your post on the disputing a charge process. I’d like to compare it to my experience.
March 30th, 2008 at 11:21 pm
Wow this is nuts, I had the exact same problem with the exact same card.
I’ve never used it, never taken it out, didn’t even sign the back, but I liked having that free credit monitor.
Then I get a letter in the mail stating that I owe like $157 and it’s 4 months overdue. So I thought, “no problem”, it’ll be handled as easily as the fraud charges on my American Express card.
Boy was I wrong, they made it such a hassle to go through, I had to pay off the credit card so it wouldn’t affect my credit score, and they took like 6 months to refund the money, and not even all of it, they kept some of the interest they charged me.
I canceled the card, it wasn’t worth the hassle, and it makes me wonder what kind of data leak they had, and didn’t even inform their customers, or was it an internal thing, and it’s some fraud scheme that Wamu drummed up? Who knows.
What a coincidence that you blogged about this. Thanks for posting it.
March 31st, 2008 at 6:19 am
One thing that you should all know about the “Credit Score” that Wamu provides on their website, it is NOT your FICO score. I found this out recently when I was purchasing a house, thinking I knew my FICO score. It turns out that they show a credit based score, not over your entire FICO standing. Also, the score is based on a system that goes up to 900 instead of 850.
When I had a real FICO score it was 50 points LESS than what I saw on WAMU.
Use the wamu # as a means to see fluctuations such as this and not to try to get credit with it, just a warning.
April 30th, 2008 at 5:35 am
Cap and anyone else:
Have any of you used myFICO Scorwatch before? I’m on a free trial yet on their forums, there seems to be a lot of grumbles of it not working as expected. Nonetheless, what is your most recommended means of Credit score tracking?
The WaMu tracking that Cap uses seems pretty cool, but I do not wish to open up another account.