money

My Credit Score

After posting about my debts, I looked into my FICO credit score. My Citi card account used to always display my FICO score when I signed in, but I noticed it doesn’t anymore. I contacted them, and they said it stopped because my score changed, but would begin posting again in 1-2 billing cycles. Hm.

I created a Mint account (just sharing; this post is not sponsored in any way) to begin better budgeting, and was pleased to find that they will give you your credit score for free. Mine is only 642! I felt shame as soon as I saw it. When I used to see it every month via my Citi card, it would usually fluctuate from 680 to 710.

Mint tells you why you have the credit score that you do, which I think is really awesome. Citi didn’t break it down into the same level of detail. Here are the 6 factors affecting credit scores, and where I stand on each:

  1. On-time payments: EXCELLENT, 100%. I might be deeply in debt, but I always make at least the minimum payments on time. I guess that’s one thing I have going for me.
  2. Credit usage: POOR, 99%. Both of my credit cards are near their limit. Thankfully, this situation will change soon. I’m curious to see how it affects my credit score in the coming months.
  3. Average age of credit: POOR, 1.9 years. I took out a loan a few months ago, which really threw off the average on this. Also, I was forced to re-consolidate my student loans a little over a year ago because one company bought another. That threw off my average age of credit too, which feels unfair, but oh well. It’s comforting to know that this factor will only improve over time, and I don’t even have to do anything except not take out new lines of credit.
  4. Total accounts: POOR, 4. Hmm…I didn’t know total accounts factored into your credit score, and I really didn’t know that 4 accounts was considered “poor” because it’s not enough. I hope not to take out any more lines of credit in the next 2-3 years, so my credit score will have to improve because of the other factors, not this one.
  5. Credit inquiries: EXCELLENT, 0. This makes sense because I haven’t been trying to take out any more lines of credit. I don’t plan to in the near future either, so this one should remain the same.
  6. Derogatory marks: EXCELLENT, 0. My bills don’t go to collections because I pay them.

It’s pretty cool that Mint offers credit scores for free. I will be checking mine every three months. Of course, my purpose in lowering my debt is just to lower my debt, but an improved credit score will be a nice side effect.

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