Within the past few months I've noticed my FICO gain 20+ points despite no major changes other than me closing a card that has had a zero balance for quite some time. In theory, that should have caused a score decrease due to a loss of available credit, yes? Curious if they went to a different scoring metric now that caused increases across the board? Anyone else see unexplained movement? FICO now tracks the oil market maybe?
No, not necessarily.
The FICO formula is very intricate and personal to each individual depending on all the circumstances on your credit history.
With that said it can go either way. Being you closed down an unused line of credit in this case, I would suggest the credit agency see’s that as less opportunity for you to get overextended in debt.
That brings us back to FICO score is intimately associated with the specific individual.
An individual can have a large amount of available unused revolving credit to them, and that will be a negative on your credit report. It will be listed as “ too much available revolving credit”
I used to get that on my credit report. I’ve always had excellent credit scores but at times a massive amount of available revolving unused credit so that would be one negative.
Don’t take that as a negative everybody has negatives on credit reports it doesn’t mean it’s bad it just gives a reason for the report that you have.
We charge a lot of things in our family, but we pay them every month always have. Everything we charge we get cash back on so once in a while, I will change out cards for a better deal and when I have a card that I am not using and know, I will never be using it. I cancel it.
Sometimes credit card companies offer me for example $350 to open up a credit card with them.
I will open it up use it for a few months to collect the $350 and then close it out. That would be one example.
