# Deja Vu on my FICO score



## Roadwarrior (Mar 6, 2018)

Here we go again, about a year ago I posted a thread about my FICO score dropping over 60 points.  It happened again after this Feb close, a 66 point drop on Transunion.  I have no mortgage, no auto loans, no personal loans, two debit cards (pension & credit union), no inquiries & 2 years ago I acquired a low limit ($500) unsecured MasterCard (only open account) for online orders & to play the rewards game.  It started with a $35 annual fee that they waived last Mar because I had kept the balance low (8%) or paid off.  

This year I didn't want to get my balance above the 8% at the monthly close so I paid it down to 0 in Feb.  It was reported as zero owed ($0).  When I posted my concern last year some of the members said they had never heard of that, and I must be mistaken or should check my report for errors - I did, nothing was amiss.  I kept track of the '17 rewards received ($65) - worth the effort but requires a little head work.  I don't know if they will waive the fee again but my thoughts go back to the drop in my FICO, the reporting agency reported that I had paid off a credit card as the reason that caused my drop.  It's all a game and the credit card issuers want to keep you in debt so they play a numbers game on you.  I read somewhere that if you have zero debt & a paid off card it goes against you (something to do with debt availability).

This goes along with the thoughts I posted about seniors & credit cards trying to play the rewards game & not getting a 'gotcha' from the issuers.  I will still maintain the card for online orders & reservations but it's not a game I enjoy in my 'golden' years.  A good FICO score is important for auto insurance, rentals & whatever.  So a drop like that could affect my rates, try to explain that on your applications, no one understands the game.

NOTE:  If I remember it took a little over 3 months to get it back close to the original score, but I had to carry a little debt along the way.


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## Roadwarrior (Mar 6, 2018)

Just checked my Experian report on credit.com.   My score dropped 73 points there.  Here is their advice.


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## NancyNGA (Mar 6, 2018)

Another one is keeping your charges well below the credit limit. They claim it’s best if you don’t even let yourself get within 25% of your limit. 

I have a 2% everywhere cashback card but it has a very low limit.  One month I made a big charge, up to just below the credit limit.  FICO score dropped 40 points next month. The higher your starting score, the more a maxed-out card can hurt you. Someone with a so-so score of 680 stands to lose only 30 points, at most, says FICO.

 Homeowners insurance companies keep an Insurance Score on you too---a combination of FICO score and records of past claims.  Since I have *never* made a homeowners insurance claim, my score is high. All that gets me is lots of calls and mailers from insurance companies trying to sell homeowners insurance.... until... they find out how old my house is. LOL!


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## Roadwarrior (Mar 6, 2018)

I've learned that my MC issuer set the closing date on my account for the 23rd of the month.  It usually is reported on the 25th, so concern that they may instate the fee ($35) prior to close I paid off the card on the 15th.  Then waited to see if I would be charged the fee, I usually do this then charge $40 or less before closing.  If I had the charge & the $35 fee then I would owe $75 equaling 15% which would lower my score, sorry no fee, you owe nothing so we are going to ding you hard.  

Like I said it's all a game of timing that most seniors (me) are not equipped to handle successfully.  Especially those who are wintering in Arizona & have only limited control with their smart phone.  I've been thinking about getting another card with no fee but canceling card number 1 would also hurt my score (I can't handle two cards with out running into trouble).  Credit age is another factor.  I only got the card and decided to use it for a monthly fill up & all my utilities about $250 per which is paid off before the 15th.


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## Don M. (Mar 6, 2018)

Credit Score is among the Least of things we worry about.  The last time we paid Any finance charges was probably back in the mid 1980's, when we finally made our last house payments.  I do notice that on our Discover Card statements, they include our Credit Score, and it usually come up about 815.  We run up a few dollars on credit cards each month... as a convenience...and pay the full balance within a couple days of receiving the bill.


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## Roadwarrior (Mar 6, 2018)

Don M. said:


> Credit Score is among the Least of things we worry about.  The last time we paid Any finance charges was probably back in the mid 1980's, when we finally made our last house payments.  I do notice that on our Discover Card statements, they include our Credit Score, and it usually come up about 815.  We run up a few dollars on credit cards each month... as a convenience...and pay the full balance within a couple days of receiving the bill.


Kudos to you Don, I watch my credit union & credit card accounts daily, always know what the balance is so there are no bogus charges hitting it before I can react.  My statement (monthly bill) is always available on line days after I have paid the bill in full.  But some still like the paper trail.  I hate to store the useless statements trying to decide how long I should keep them.  The government & courts all accept electronic statements.   Don, great FICO score, mine was in the mid 700s prior to this week, oh well!  My wife's in the 800's she has a credit card, 2 retail cards & less income than I.  I pay everything except those 3 accounts & she has a higher score than me!


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## mathjak107 (Mar 6, 2018)

i carry no balance . i have not in 20 years . i use my cards daily but pay them off right away . we are in the 820's .


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## jujube (Mar 6, 2018)

I'm not sure what makes FICO scores jump around.  A couple of years ago I charged about $3000 for some furniture on my card because I wanted the points.  I paid it off the very next day.  My FICO score fell 20 points the next month and then jumped back the month after.  I had that $3000 on my card for ONE day.  One day.

Be fiscally responsible, pay off your bills each month and what reward do you get?  Answer: your FICO score falls.

It's been at least 810 for the last couple of years, so I don't worry about that little glitch, but still.....


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## garyt1957 (Mar 7, 2018)

Don M. said:


> Credit Score is among the Least of things we worry about.  The last time we paid Any finance charges was probably back in the mid 1980's, when we finally made our last house payments.  I do notice that on our Discover Card statements, they include our Credit Score, and it usually come up about 815.  We run up a few dollars on credit cards each month... as a convenience...and pay the full balance within a couple days of receiving the bill.



 That's my thought, who cares? I would assume most of us aren't planning on needing any major credit. No houses in the future, maybe a car? Mine was over 800 last time I applied for a home equity loan about 10 years ago, haven't checked since. Am I missing something?


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## Roadwarrior (Mar 7, 2018)

garyt1957 said:


> That's my thought, who cares? I would assume most of us aren't planning on needing any major credit. No houses in the future, maybe a car? Mine was over 800 last time I applied for a home equity loan about 10 years ago, haven't checked since. Am I missing something?


Have you ever used your debit card at one of these places?

Independent ATMs
Gas stations
Hotels
Rental cars
Self-checkout lines
Big-ticket items
Restaurants
Automatic payments
Online
Travel

Do you understand what 'Universal' credit is?

If you only have a debit card & used it at one of the 10 places above you have exposed yourself, your savings & checking account balances to possible fraud or identity theft.  So you get yourself a low limit card as I did to make those above purchases or payments.  The card protects you against theft.  Most debit cards protect you somewhat but by the time you have discovered it, it could be too late, that's why I check my accounts daily.  A monthly statement could be too late.  

When you apply for a credit card of course your FICO score is considered along with your credit profile.  If you get the card then you have agreed to let the card issuer check (soft inquiry) your scores periodically, if there are major changes or even fraud involved you could be subject to higher interest or lower limits set because of 'Universal' credit.  If you have been late on any payment even for other creditors then the card issuer has the right to raise your rates even though you have been perfect with them.  

The rental companies, auto and home insurance companies also have the right to adjust your rates based upon your credit scores through the 'Universal' credit clause.  So you need to know your score & care about your profiles since it could mean higher rates over time.  If you ever get into a bind then having a better score can save you money & headaches trying to take care of those situations.

I was of the opinion that I didn't need credit, but we live in a mobile society and most things are geared to that.  Some restaurants are oping for credit card only, it's less hassle & less expensive for them to accept only cards without the manpower required to take, balance & deposit cash receipts.  Yes, you will pay a fee in the end whatever you decide.  When I was using cash only I would ask for a cash discount only to be embarrassed when refused.  I guess I could sit at home watching TV, never go anywhere or need anything but that isn't the human way.  

I only had my debit cards then realizing how exposed I was I decided it was time for me to get on board.  The rewards are minimal, I do keep my balances paid off but only have the one card, some financial advisors recommend you carry 2 cards because the establishment you have used (i.e. gas station, restaurant or hotel) can put a hold on your card for a short time, having 2 cards enables you to have a backup.  My decision to get another card is probably something I'll do just to avoid that problem.


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## terry123 (Mar 7, 2018)

I have a debit card I have never used and will shred it. Too much chance of fraud. Keep a Bank rewards card and a Kroger one that are paid off each month. Got the Kroger one to put high bills on like car and house insurance on and then pay off end of month.  Get points with the Kroger one . Yesterday I got a $30.00 check from Kroger to be used at their store due to the points I got from using it for major purchases.  Check the Bank one each day to be sure nothing is wrong.  Fico score is 810 which is fine with me as at this time in my life I do not plan on buying anything major. My condo, car etc is all paid for and I live within my means.  I never want the worry of paying my bills late or not at all.  There is nothing I need materialy. (sic)


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## Aunt Bea (Mar 7, 2018)

I don't worry about my FICO score.

Like others have said I just concentrate on paying my bills in full each month.  

If you are going to carry more than one credit card try to find cards that use different credit card processors.  Ask the issuer or maybe check online to see if your financial institution uses First Data, Total Systems, etc...  In the event of a major natural disaster, power outage, etc...  it may increase your odds of having one card that works.


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## JimW (Mar 7, 2018)

For anyone who doesn't already know about Credit Karma.com, I highly recommend it. It's free and you can check your credit score as many times as you like without affecting it at all. They also provide a monthly breakdown of all your accounts both opened and closed with balances and payment history. They will also guide you in specific areas your credit may be lacking such as debt to credit ratio, credit inquiries, number of accounts, derogatory remarks and other credit score factors. Credit Karma found and notified me of fraudulent charges on an old card I hadn't used in 6 years, someone in the UK got my account info and racked up about $400 in charges before they were shut down. The address I was using on that old card had changed and the credit card company couldn't get in touch with me, but Credit Karma did. I reported the fraud to the credit bureaus and all charges were removed from my credit report as well as having the account closed. Both my wife and I have credit scores in the low 800's.


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## C'est Moi (Mar 7, 2018)

I don't obsess about my FICO score but I do keep an eye on our credit reports and accounts.   We froze our credit with all three major agencies last year after the Equifax data breech fiasco.   So no one can open new credit in our names, not even us unless we lift the freeze.   I can see my FICO score anytime I want on my Discovery Card account.


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## James (Mar 7, 2018)

At my retirement seminar they told us that our credit rating would drop because pensions are exempt from garnishment.


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## mathjak107 (Mar 7, 2018)

i doubt that is true . they have no clue what your assets are or incomes sources . it is not part of what is reported .in many states ira's are not garnish able.  we have no pensions and no steady souerce of income other than portfolio and our credit scores rose in retirement


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## rkunsaw (Mar 7, 2018)

I use two credit cards and pay them off each month. Our credit score last month was 819. It varies quite a few points at times, I don't know why.


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## AZ Jim (Mar 7, 2018)

rkunsaw said:


> I use two credit cards and pay them off each month. Our credit score last month was 819. It varies quite a few points at times, I don't know why.


Mine  was also!!


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## dpwspringer (Mar 7, 2018)

rkunsaw said:


> I use two credit cards and pay them off each month. Our credit score last month was 819. It varies quite a few points at times, I don't know why.


I noticed mine vary +/- 16 points depending on credit card balances at the time they check... and I do pay them off in full each month. For a month or two I paid them off every week or so and that kept the balances very low, or 0, when they checked; my FICO scores stayed at their peak during that time.


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## Seeker (Mar 7, 2018)

I don't even look any more but we did however receive a check from TransUnion last week because of a settlement. I'll be takin' my $21.06 to the bank.
I pay in cash don't worry about credit. No longer have any credit cards. Stocks are moving up with a quickness. May be time to sell soon.


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## KingsX (Mar 7, 2018)

.

I always pay off my credit card in full each month [so there is no interest to pay]
and so far that has not negatively affected my credit rating.

One of the best cc for rewards is Chase Freedom Unlimited Visa.
1 1/2 percent cash back on every purchase and no annual fee.
You can redeem rewards for a statement credit if you prefer.
This is what I do every month.


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## mathjak107 (Mar 8, 2018)

we have the unlimited , the chase freedom and the chase sapphire reserve .

what we do is use the unlimited for everything not travel related or restaurants .  we transfer those to our sapphire reserve and get all the points multiplied by 50% when we book our trips through the chase travel portal . that gives us 2-1/4% back effectively .

we use the freedom for the 5% categories and transfer those to the sapphire for 7-1/2% 

then we use the sapphire for all travel and restaurants getting 3% which when used for travel is multiplied to 4.50% .

we have over 120,000 points since october which get multiplied by 50% for travel  . we can take a free trip just about anywhere .

we love the chase sapphire reserve card and make such good use of it . the just paid for my  tsa precheck as a perk . we got 60,000 points just for taking the card .


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## OneEyedDiva (Apr 16, 2018)

Recently I've taken out cards to get the bonus rewards and all my cards give cash back rewards. Once I cancelled another card first. Sometimes my balances may reach $1,000 or more a month but I have always paid in full each month. I have 6 credit cards...two I use on a regular basis. One is a Mastercard (2% cash back)the other is a Visa (1% with 5%) bonuses, plus an Amazon card for when I purchase from the site (3%) a Discover card that I use periodically and another I only use once a year to keep it active. I'm thinking about closing that one to take advantage of another bonus deal. I don't even know how much my credit limit counting all the cards is but it must be upwards of $50,000. I don't feel I'm being penalized for paying my balances in full each month because my credit score stays around 820 with only small fluctuations from time to time.  

So with your situation as described I don't know why your score keeps dropping. Here are factors that can affect your FICO score. 
https://www.creditcards.com/credit-card-news/help/5-parts-components-fico-credit-score-6000.php


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## Roadwarrior (Apr 16, 2018)

Having only one credit card ($600 limit), no mortgages, no auto loans, no personal loans & basically no debt created a situation like mine.  When I paid the entire balance off prior to closing the credit bureau used an algorithm that triggered a drop in my score, I'm not sure how it works.  My score stayed constant as long as I showed less than 10% of my limit as debt on closing date then pay it completely off before the due date.  I applied for an additional card with a $3,000 limit now I can carry up to $360 debt from payment date to payment date.  

I dropped 65 points in Feb then discovered why it affected my score, so I charged <$60 for Mar closing and my score gained back 72 points.  Both cards are rewards cards.  Still only spend what I can afford to payoff each month but almost half my purchases now go on the cards,  I did make a little money on the rewards last year but still wonder if the bookkeeping headache is worth the effort.  My concern was would any of my insurance carriers do a soft check on my credit & have it raise my monthly rate because my score dropped suddenly.


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## helenbacque (Apr 16, 2018)

I have two cards and use them freely but pay each fully well before the due date.  My score doesn't change.  Has been 800+ for years.  

I don't try to game the system.  I have too many other useful ways to use my brain. Time and concentration spent on my genealogy research would be more productive.  But to each his own.  It's what retirement should be all about.


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