I never heard of a creditor like someone with a low credit score. The only reason a creditor would like a person with a lower credit score, is they can give them a higher interest rate.

I believe a score in the six hundreds was the magic number in the past, I heard on the news they want people with a higher score. I had a friend recently apply for a mortgage and they wanted his score in the mid 700’s.I also know someone that had a $20,000 line of credit and paid it off and the next thing he knows his limit was reduced to $5000.00.I believe if you want get the low interest rate or credit in the future the scores will have to be in the 700’s or more.

Hey Average Joe.....you stated that lenders are looking for a score more in the 750 range. Can I ask where you got that? I was approved for a mortgage back in October, 2008 (i think) with a credit score of 623, apparently with TD, 620 was the magic credit score because I was denied 6 months earlier with a score of 612. I am up to 650 and am interested in possibly getting an Emerald Visa from TD bank and a line of credit, but unsure of the minimum credit scores required. Kind of interested in your source.

average_joe..

creditors also like people who have lower credit scores, who have good down payments or security.

jimmyjimmyj,
That's probably what it is.. the inquiry.. which costs around 5-6 points.

Having a score of 647 these days will probably get you denied, and if you are accepted the interest rate will be high. The lenders these days are looking for people with a credit score of 750 or higher.

The score drop seems to have come from the credit inquiry in December. It is the only logical thing as I pay my balance in full every month.

I spoke to a mortgage broker that advised me to carry a balance on my card to help increase my score. Will not help me now as i have to get a mortgage in the next month but i will try it before i renew. I have been putting off getting various types of credit because i was trying to save the hard pulls (catch 22) so i only have the credit card as a current open account.

My EQ score is now 647

jimmyjimmyj

What is your credit score with equifax and transunion?

5 points could be from a credit inquiry, higher balances, slow payment..
There are many different things to cause the fluctuation.

Have you applied for credit recently? Do you have new credit inquiries on your report?

I think that was my issue before, but now I understand a little bit better.

I know you said your pay your credit card in full, but, the statement balance each month may vary. It could be that your balance as of the last cycle is a little higher than the previous time you pulled your credit score.

A 5 point decrease may mean a lot to us, but probably not so much with the Lender. I have my fico score dropped by 17 points when I applied for a new credit card, but what can we do, that's how the complicated credit scores and fico scores are being calculated. Everytime, we move an inch, there's a point reduction in our credit scores.

So, don't worry, your score will go up again. As long as you know what's being reported, that's more important.

Maybe what you applied for in December took your score down five points, five points is not that much and should go back up again in a few months.