Hello all, I apologize in advance if this is a stupid question. I currently have 3 forms of credit, 2 credit cards and an auto loan. My credit limit is around 6,000 dollars, and I utilize about 10-15% every month. Every month I check my updated FICO score from each of my credit card providers (Discover, Citi) and they differ by about 40 points typically.
This month my discover score went up 4 points to 742 while my Citi score fell by 6 points to 700. What’s the reason for this difference if they’re both FICO scores? Citi cites having too many lines of credit as a problem, while discover credits this as a benefactor to my score. For context, I am a 20 year old college student working full time, so I don’t have a long credit history (2 years). I’d like to raise my score as much as possible, thanks for any help
Each of the three credit beauros have slightly different calculations.
Think of it like your grandmothers secret spice mix. You know it’s salt pepper onion powder and paprika……but the ratios are never quite the same when you try to do it yourself.
Some companies want more DTI; others ding you for closing lines of credit.
Best thing to do is think about the general trend of your credit over time (much like stocks). Don’t worry about a little pit fall here or there if the overall trajectory is up
Your credit scores are fine, and those changes and differences are trivial.
I wouldn’t stress small changes, just keep building credit.
Citi and Discover don’t do hard pull for credit limit increase so put it on your calendar to ask for one each and every 6 months.
In addition you could shop around for a new card that gives you a nice sign-up bonus and better rewards on your everyday spending.