Improve credit score without increasing debt

[CAMSDADDY]

The other day we applied for a mortgage. When the gentleman ran our credit reports I found that our scores had dropped on all three bureaus. The lowest was 797. We are debt free other than our home. We only have one credit card that we use for most purchases but I pay it off several times a month.

The reason our score has dropped is lack of credit utilization. Is there any way to increase utilization without paying interest? We are about to buy a house so we can't open or close anything at this point. I don't see us trying to buy anything on credit unless we buy another down the road. I would just like to keep our scores up

The interesting thing is my wife and I have identical scores on all three bureaus.

 

[Ken Ford]

All mine dropped about two months ago, 30 points. Said it was because one loan dropped in balance, now they’ve come back up a few points a week. Didn’t make any sense at all.

 

[CAMSDADDY]

It's crazy. I know that often times the more debt you have the higher your score if you make payments on time. I just don't want to pay interest to improve a score I only use to purchase a home and to honestly pride in accomplishment from mistakes in the past.

I wonder if I used our credit card and only paid it off after the statement drops each month if that would increase our score and show we are using more of the available credit?

 

[Chatsworth]

797 is a good score, seems like it is?

 

[PewPewChris]

797 is a good score...would bumping it up a few points do much from loan acceptance or rate? All 3 of mine hover around 802 - 805

 

[CAMSDADDY]

I don't think it would have changed anything. I just didn't know if it would continue to drop if we didn't make any changes. I guess it's like a fire extinguisher or a CCW. I don't have plans of using it but want to have it in case of emergency

 

[PewPewChris]

Just monitor it if you are concerned. I really don't think I would worry about it too much. Now if it was 600 and you were about to get a large loan than maybe you would want to get it bumped up some

 

[Jdadams]

My credit fluctuates several points per month based on how much I have on my credit cards at that point. I pay them off every month.

One of my credit cards provides access to credit wise or something as part of being a card holder. It gives 6-8 categories on how your credit is calculated and gives the opportunity to run a series of what if’s to see how that would effect your credit score. My credit score is in line with yours and the big ways to improve it are having a credit account for over 25 years and having over $50k in credit available.

Needles to say, there is not much I can do with either one of those.

I’m not in the loan business, but I personally dont think the banks are any difference between 797 and 800.

 

[bilgerat]

I herd all 3 credit score companys changed their algorithm on how they calculate the score and everyones scores dropped around the first of the year. Mine dropped 25 points and nothing changed at all in My credit ,made all payments on time and opened no new accounts.

 

[Redneck1919]

The other day we applied for a mortgage. When the gentleman ran our credit reports I found that our scores had dropped on all three bureaus. The lowest was 797. We are debt free other than our home. We only have one credit card that we use for most purchases but I pay it off several times a month.

The reason our score has dropped is lack of credit utilization. Is there any way to increase utilization without paying interest? We are about to buy a house so we can't open or close anything at this point. I don't see us trying to buy anything on credit unless we buy another down the road. I would just like to keep our scores up

The interesting thing is my wife and I have identical scores on all three bureaus.

I have no outstanding debt at all. We use credit card to pay everything for the rewards. Pays for Christmas every year. Seldom use cash or a check.
Never pay any interest. I pay the full amount at the end of the month.
I think the credit score is partially figured on the amount you have available on the cards and what you owe.

According to the bank my credit score is:
Your FICO® Score is 825.