FICO Score Tracking #4 - Little Changes
Posted by Cap in Credit Related on April 10, 2006 |FICO Score Tracking #1 | #2 | #3 | #4 | #5 | #6| #7 | #8
- Number of accounts opened: 7
- Inquiries: 3
- Total revolving balances: $11,000
- Total available credit: $50,000
Nothing new really. Scores are staying consistent, as I steadily pay off my 0% balance transfer loans. I have only about $11,000 in the loan left, sitting in my ING Direct account earning 4.75% (till April 17). The 0% rate will end around July.
Quick explanation if you don’t want to track back (because it’s a mess to read). The score started to slide around June of 2005 as I started to take on more 0% credit card loans. The all-time low could be seen during November, when I maxed out about three of my credit cards for these loans. The sharp increase during December and January is because I paid off one of them, a $7,800 balance transfer loan.
In about 4-5 months, you will see another sharp increase, bringing my FICO score back to around the 750 ranges as all my 0% balance transfer loans are paid off. When that happens, it’ll be time for more 0% balance transfers!
5 Responses to “FICO Score Tracking #4 - Little Changes”
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April 10th, 2006 at 12:15 pm
Heh. 612. I love how they penalize you for having a high balance about as much as someone who pays a bill late.
April 11th, 2006 at 4:55 am
How do you find out your FICO score month by month?
April 11th, 2006 at 11:10 am
ah the score tracking is provided by Providian credit cards. That’s about the only worthwhile feature they have. When you login to the account online, there’s a credit tab which gives u a brief look at your current credit standing (including # of accounts opened and ranges of revolving debt).
If you take a look at the first score tracking post, back in August of last year, I made a few mention of it and how it works. It’s a messy read though.
There are a couple problems with the provided FICO score:
1. They’re adjusted credit FICO score, real deal according to many sources, but the scoring model is for credit card companies.
2. They’re not too accurate. They’re about a month behind in reflecting your current actual credit standing.. not only because credit agency hasn’t report yet, but also because Providian doesn’t state when the scores were based on. So you can only use it as a reference, not a definite gauge.
Still, they’re free.. so it’s a good reference. My current FICO score from Transunion is probably around ~680
To get the current, real deal, FICO score so you can shove it at the finance department at the dealership (or mortgage lender), you should check out myfico.com . I have a half written review of it up, which I will post one of these days..
if you decide to use myFICO, search for discount codes online.. there’s always a 20-30% off promotion flying around somewhere.
I use to be a real credit junkie.
April 15th, 2006 at 1:04 pm
So when the 0% is up, do you cancel the cards or just not use them anymore? Also, if you keep the cards without using them, does it negatively impact your credit report due to such a high amount of credit availability or does it look good because you can manage you spending?
April 15th, 2006 at 1:20 pm
Nick: I won’t cancel the cards, I’ll still use some of them, especially the Citi Dividend, but some of them I may just put away. Generally, you don’t get any benefits from canceling a credit card. You lose the line of credit and the positive history that you’ve build up through the years. In some situation your credit score will be lowered when you cancel cards, since you’re increasing the debt to total credit availability ratio (if you have debt).
The impact on credit report depends on the perspective of the creditor. If you’re applying for a large loan or mortgage, having too many unsecure credit line opened will increase your risk factor. If you’re applying for another credit card, it usually depends the card company, what they look for in a customer. In many instances, prime rate credit card providers won’t approve application for people with too many recent credit line opened. It all depends on the history of the card you’re considering closing, and who’s actually looking at your credit report for it to be view as “positive” or “negative.”
In my situation, I’ll be keeping these cards, and will probably close some unnecessary accounts when it comes time to get a mortgage. It will be best to take these type of action, 6 months before you start shopping for a mortgage.