If you’re a blogger, you know, your life is an open book. You share things with your readers that a lot of people may think you’re crazy for sharing. But, we feel, if it helps our readers, that’s what makes it worthwhile.
So, I’m about to really put myself out there and share with you something really personal. Something that many people just do not share. Not sure why. For some, it’s a badge of honor. Others, it’s a badge of courage because you went through something that someone else may not understand. It is something that in the process of the short sale of my home this past Spring, I had MANY MANY MANY anxiety attacks about.
My FICO score and the recent fluctuations.
When I bought my house in 2009, my credit score was 800. The financial company I went through was surprised. Said that they never had a single woman buying a house with a credit score that high. I was proud of myself. That score was my badge of honor.
Over the course of six years, my score went down slightly for a variety of reasons. One, my house was a huge amount in my debt to income ratio. Two, I was laid off from my job and my income went down significantly. Again, affecting my debt to income ratio. Three, not going to lie here, during the time I was laid off, I went late on some of my payments.
However, even with some of those delinquencies, I always paid before they were two months late, so, the hit on my score was minimal. The lowest my score got was 740. So, I’d lost 60 points since I bought my house. Still, I was in the Very Dependable field. Barely, but, I was there.
During my short sale, things got bad. The increase in my panic attacks was bad. But, looking back now? It wasn’t as bad as I thought. My credit scores from the start of the short sale until now were:
January – 742 *Very Dependable
February – 686 * Good
March – 685 *Good
April – 685 *Good
May – 685 *Good
June – 647 *Below Average
July – 684 *Good
August – 690 *Good
I’ve heard HORROR stories from people doing short sales. But, looking at my scores? I really don’t know how I got so lucky. I suppose it could be that the only payment I missed during my short sale was my mortgage payment. I made sure everything was paid for on time with everything else.
Here are the factors that affect your score:
- Payment History – (35% of Total score)
- Amounts Owed (30% of Total Score)
- Length of Credit History (15% of Total Score)
- New Credit (10% of Total Score)
- Types of Credit (10% of Total Score)
I cannot stress this enough. Review your credit report annually by clicking HERE. I reviewed mine after my short sale and found a discrepancy. I had a bill that I was paying my dentist for. Under their new office management, they sent it to a collection agency. I called my dentist office and found out this new process.
I had been with this office for 25 years and they always let me make payments. But, that changed, as I had been informed when I called. So, I immediately paid the bill, under the impression that it would not be reported to my report. Well, lo and behold, there it was. I disputed it with the credit agency and they removed it within two weeks. I feel this contributed to my higher point increase from June to July.
I’m continuing to make all of my bills on time. Credit cards, car loans and utility bills. Doing this, I know that the short sale will be a thing of my past and when I go to move again, I’ll be free and clear to either buy another home, an RV as my home and to travel in, or, will have no issues renting if I choose I don’t want the fuss and muss of buying another home.
Have you had a situation in which your credit score was affected? Or, a situation that you needed to try and raise your credit score? What did you do?