It’s been a while since my last post – I’ve been using my blog time researching turnkey rental properties. I’m seriously considering getting a turnkey rental property in the Midwest, keeping myself busy talking to several lenders, turnkey property suppliers for various markets, analyzing properties, listening to Audiobooks.
Therefore, a bit slack on the site.
When I first announced my real estate investing experiment two months ago, my FICO score was not that great looking. As shared in that post, it was between 660-690 , and I said I’d work on it.
To be fair, that score was not terrible – it probably won’t automatically deny me of a loan but it certainly wouldn’t give me the best interest rate. As in any type of investing, getting a good deal is crucial in my real estate experiment. And that would include getting the best interest rate, or moving up my FICO score to more than 740 which enables me to get the best rates.
My current FICO scores
I logged in to my respective credit card accounts and below are my current credit scores.
|Update date||Credit Bureau||FICO score|
Looking great! Now they are in the upper 700s, or even 800s. Experian gave me the lowest FICO score of all the three credit bureaus, but it’s still 783. Not shabby at all.
In other words, in just two months, I improved my FICO score by more than 100! Fantastic!
Below is a chart showing how my FICO score changes in the two months for each credit bureau.
What did it do?
Actually my drastic increase in my FICO credit score is not that surprising to me. As long as you have a grasp of the main factors affecting your credit score, it’s easy to manipulate it. Interested to know more? See my post series on credit score starting from this post.
Back in March, there were two main factors keeping my credit score lower than ideal: high credit utilization, and relatively short average credit history. So I tackled these two daemons.
Earlier this year I opened new credit cards to take advantage of their promotional 0% APR balance transfer offers, intending to use the balances to make some ETF-like investment. After transferring the credit lines out to my checking account, my credit utilization became high. Later, I had a brief experiment with Motif Investing, but soon I decided I’m more interested in real estate investment. I cleared my Mofit Investing account, made a 4.4% return in just two months thanks to the market rise, and paid off the balance on my credit cards. My credit utilization is now golden.
Average credit history
I’ve had my first credit card since about ten years ago, so my credit history itself is not short, However, I’ve been churning credit cards for sign-up bonuses since a few years ago, resulting in a lot of relatively new credit cards, dragging down my average credit history. The solution is simple, I closed 9 of my newer credit cards. BTW, it “accidentally” got me a 5-9% cash back credit card. Read my previous post if you are interested.
That’s all I did. My FICO scores jumped by more than 100. Not too surprised, but I’m still happy.
Do you have stories to share about your credit score? Leave a comment.
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