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The ALISON D. GILBERT Blog, Using Credit Cards

Why Did My FICO® Score Decrease by 12 Points In One Month?

October 11, 2018 No Comments

A Stable FICO® Score

I check my credit scores everytime I check my credit card balances. The scores are stable, fairly consistent and fluctuate a few points at most. The chart below is a clear illustration of that stability.

An Untypical FICO® Score Situation

So when I got a notification last month that my best score had dropped 12 points, I was shocked. The charts below mentions the 12 pt decrease in red.

Because I pay such careful attention to my score, I usually have a pretty good idea why it might change and by how much. As I mentioned, I usually have a fairly stable FICO® score. Therefore a decrease of 12 points was a red flag to me. Something was wrong. But I had no idea what it was. It was time to investigate.

Five FICO® Score Factors System

There are five or six main categories that go into determining a credit score. They are illustrated in the three examples below.

Six FICO® Score Factors System

Primary Credit Factors

The wording may vary slightly and the scoring may as well. But it comes down to basically the same thing. Scoring may be based on a letter system like A, B, C, D or words like, Excellent, Good, Average, Below Average. In my case, my monthly grades have enough excellents that my score remains around 800 for these six categories:
• Payment history (On-time Payments)
• Credit Utilization (Credit Used)
• Age of Credit (Oldest Credit Line)
• Credit Inquiries (Recent Inquiries)(New Accounts)
• Total Accounts (Available Credit)
• Negative Marks

Searching for the FICO® Score Factor Red Flag

The above grades are good enough to rank me around an 800 FICO® score each month. Previous to last month, no action I took lowered my score by 12 points. But I knew that once I found what category was off and why this had happened, my decrease would be explained. In fact, what it was turned out to be kind of humorous.

The Solution Turned Out To Be in the Credit Utilization Category

On an average, I use between 1% and 2% of my credit utilization category. This means that if I have a $100,000 credit limit on all my credit cards, I only charge $1000 to $2000 dollar a month total. Two months ago, I had gotten a new promotional credit card. It offered a cash back reward of $200 if I charged $1,000 on it within three months. I was so excited about the cash reward that I charged the full amount within two months. That reflected a very unusual credit utilization percentage for me. It was much more than normal.

Glancing at the chart above, one can see that my normal credit utilization is 2%. But the new card that I purposely charged a large amount on had a credit utilization rate of 22%. Here’s the irony. In order to fulfill the requirements for the promotion, I charged much more in a month than normal. It did not significantly damage my credit. But it did throw both the credit rating company and me for a bit of a loop at first. I am sure that by next month everything will be back to normal since that kind of utilization is atypical for me. In addition, I will have a statement credit or a cash reward of $200. to ease the pain. Not a bad FICO® score lesson in my book!

Conclusion

I was fortunate in this case that nothing serious had happened to my credit. I did not need to contact any of the credit reporting agencies. They are Transunion®, Experian®, and Equifax®. If there is a situation that does not seem right and that you cannot figure out on your own, do not hesitate to call the particular credit card or one of the three agencies. We live in a time when we have easy access to these agencies and we should be careful as well as protect ourselves from errors and fraud.

Sources and Resources

Transunion®
Experian®
Equifax®
Using Credit Cards for Survival and Profit

The ALISON D. GILBERT Blog, The Former Middle Class, Using Credit Cards

The Former Middle Class Trilogy

March 11, 2018 No Comments

mastering green — The Former Middle Class eBook Series Available at Amazon.com

INTRODUCTION

There are three ebooks in The Former Middle Class Trilogy.The first ebook is called, The Poor Middle Class Crisis and the second ebook is, Using Credit Cards for Survival and Profit. The ebooks are available on Amazon.com. Mastering the Art of Green is my third ebook in the Former Middle Class trilogy.

THE POOR MIDDLE CLASS CRISIS

The Former Middle Class.The Poor Middle Class Crisis chronicles our history as people who were devastated by the 2008 stock market crash. My husband lost his job the same week as the crash. He was 62 at the time. I became very ill from all the stress.

We had become part of The Former Middle Class and did not know how we were going to survive. Our low point was when we faced the possibility of having no place to live and were, One Day From Homeless.

Our journey became one of survival. That became our priority. We had to learn to live all over again under very different financial circumstances. We explored many different avenues and began to build our financial survival tool kit.

OUR FINANCIAL SURVIVAL TOOL KIT

Building our kit involved many lifestyle changes. We went from a two bedroom apartment to subsidized senior housing. Access to food was a big challenge. Instead of the opportunity to purchase expensive, organic foods and eat out on occasion, we had to depend on the generosity of others and the government. Food pantries and food stamps are crucial financial survival tools. But they may be hard to swallow.

We went from middle class comfort to former middle class frugal living. It was a huge adjustment. We explored many tools that didn’t work for us. Things like couponing and taking surveys. Many more thrifty tools are mentioned in the first ebook. Eventually we found one tool that not only helped us survive but also became profitable. That tool is credit cards.

former middle class trilogy — Using Credit Cards for Survival & Profit eBook © 2017 Alison D. Gilbert

USING CREDIT CARDS FOR SURVIVAL AND PROFIT

Let me make very clear right from the start that our use of credit cards has involved a very responsible set of guidelines. We pay all our bills on time and in full. Our credit rating fluctuates between 775 and 800 depending upon which credit reporting agency you ask.

Credit cards have given us a financial cushion between sign up promotional bonuses and monthly cash rewards. My refinement of credit cards as a financial survival tool lasted about eight months. What I have learned, and continue to learn about credit cards is fascinating and extremely informative. I have my accounts charted with spreadsheets for each month. Read My Credit Card Accounts Maintenance System for the details of my system.

In less than a year, I had become sophisticated in the financially lucrative use of the credit card benefits tools. All of a sudden, the additional hefty promotional signup bonus credit card memberships applications began receiving denial letters. My stellar tool of acquiring credit cards with promotional sign up bonuses of $100-$200 had lost its winning streak. Clearly, it was time to rest that tool, re-examine some of the other financial survival tools that I had discarded in the past and to research additional new tools. I was at a loss and needed new financial fertilizer.

MASTERING THE ART OF GREEN

Mastering the art of green is a process. For me, it has involved taking stepping backwards to get a different, larger view on what ‘green’ means. It can refer to money. It can refer to food, lush grassy fields, innocence and inexperience.

Sure enough, once I stepped back and started to look at green in a new way, as fertility and productivity, new tools started to sprout. I started growing food indoors calling it, Table Top Farming. I am growing microgreen in soil and hydroponics in water.

This project is of major importance to us since healthy, live food sources can be scarce for seniors on fixed incomes. Food pantries tend to offer the lowest quality packaged/processed food. The SNAP (food stamp) program provides a miniscule amount of money to supplement nutritious food. So growing one’s own live, local greens can be better than money in one’s pocket.

RECONSIDERING COUPONS, STORE SALES AND SELLING SITES

Coupons and other money saving programs do have their value. They are not as lucrative as credit card sign up promotional bonuses. But what is? There again, when I took a step back to get a better perspective on what made sense for me to pursue, I found many options.

Some coupons like the specials CVS Pharmacy and Michaels Stores-Art Supplies, Crafts and Framing offer can be as high as 40-70%. A Bed, Bath and Beyond 20% coupon get help a lot on a $100 plus purchase. Target, Walmart and Amazon vie for top savings. In addition, there are programs that will automatically check to see if there is a savings special when an online purchase is made. These include Ebates, honey, and cently and piggy. Other apps exist that I have not yet had a chance to explore. Two of the most popular are ibotta and Groupon.

Decluttering, Sarah Mueller style can provide lots of potential items you no longer need and want to sell. The above video is from a workshop she did with an expert at selling stuff. Two of the most popular selling sites are Ebay and Etsy. I have not sold on Ebay. I do have an Etsy store, Tin Can Ali. It displays some of my painted items for fun. I have not really tried to sell anything. But Ebay can be a great place to sell things especially if you watch the Kathy Terrill videos from I Love To Be Selling.

CONCLUSION

As you can see, the possibilities are endless. Prioritize your options. Find what is most beneficial and takes the least time to execute it. New savings hacks are invented all the time. Be resourceful. Do the research. Continue to read my and other blog posts for the latest information.

SOURCES AND RESOURCES

Wallet Hack’s article Target’s Store Shopping Hacks
Wallet Hack’s Article 10 Sites That Pay You Money for Things You’re Already Doing For Free
Ann Gibson The Micro Gardener
Sarah Mueller Decluttering Club
Kathy Terrill I Love To Be Selling – Kathy Terrill
Alison Gilbert’s Facebook pages and groups:
Table Top Farming
Survival Comes First
Savvy Saving Survivalism

ALISON D. GILBERT Blog, Using Credit Cards

My Credit Card Accounts Maintenance System

December 29, 2017 No Comments

Introduction

My goal, as a retiree on a very fixed income as well as a member of The Former Middle Class is to make ends meet on a monthly basis. I find that Using Credit Cards for Survival and Profit is very helpful to accomplish that. But in order to do this, a credit card accounts maintenance system is necessary. Because I have used my system religiously, I have graduated to Mastering The System of Extreme Credit Card Benefits. The purpose of this post is to describe my system in detail so that you might be able to take these steps to make ends meet, too.

Because my credit card accounts maintenance system is so effective, I can manage a substantial number of credit cards responsibly and profitably. Even as the number of credit cards has increased, it has not interfered with my accounts staying in order. In addition, my credit scores continue to hover between 780 and 800, my credit report profiles are in good standing and I have very good to excellent credit.

credit card accounting maintenance system — My checkbook with a Vera Bradley® cover, checks and register from Checkworks.com are all elements of tool #4

My Credit Card Accounts Maintenance System

I’ve developed a Credit Card Accounts Maintenance System that consists of a set of tools combining old fashioned manual bookkeeping techniques with up-to-date digital tools:
1. credit card information chart
2. manual ledger paper spreadsheet
3. digital bookkeeping program with checking ability
4. manual checking account with a colorful checkbook cover, checks and paper register
5. email access to and from all my accounts
6. online account access to each credit card listed in my bookmarks
7. online bill paying capability
8. telephone contact with each credit card company

1. Credit Card Information Chart

I created a table in Microsoft Word®. It consists of the data for all my credit cards. That includes every bit of pertinent information about each card. There are even icon size images of all my credit card for visual recognition and order. See the categories shown below this illustration.

Credit Card Accounts Maintenance System — These are the header for my comprehensive Microsoft Word chart, tool #1. It has about 2 dozen rows of individual credit card data.

2. A Manual Spreadsheet

Perhaps because I grew up in the paper world before the computer, I still find it easier to use manual ledger paper for my credit card accounts maintenance system. But if I become more comfortable with Excel, I might shift my spreadsheet to Microsoft Excel®. Digital or manual, it is possible and prudent for me to keep a tally of every dollar I have charged on each card. Actually, all my tools create a checks and balances system to make sure my accounts are accurate. It doesn’t matter if they are manual or digital. Use what works for you.

3. A Digital Bookkeeping Program

Because I have a Macintosh Computer, I got the only bookkeeping program that was specific to Apple many years ago. It was originally called, MYOB an acronym for ‘Mind Your Own Business’. The name was updated to Accountedge because it now has many accounting features in addition to its original bookkeeping features. Accountedge.

credit card account maintenance system — My 6 column ledger pad from from WilsonJones is tool #2

4. Manual checking account with a checkbook cover, checks and paper register

I still pay a few bills manually using checks. Doing this makes it possible for me to keep track of certain personal loans as I pay off them off. This way I have a check copy on my monthly statement for record keeping and documentation. The purpose of my Checkbook Register is to keep a record of every financial transaction I make. I even devised a system of color coded symbols that shows when:
a. a purchase was made
b. it is recorded online by my bank
c. I entered it into my online bookkeeping system

5. Email access to and from all my credit card accounts

The Credit card companies contact me by email. They remind me when bills are due and let me know if there is some other issue concerning my account.

6. Online Account Access to Each Credit Card

I bookmark every credit card URL so that I can easily check each credit card account daily. This is another way for me to make sure that the numbers online coincide with my manual spreadsheet numbers.

7. Internet bill paying capability

Each credit card websites is listed on my Internet bookmarks to be accessed easily. Most of my bills are paid on line. Some are even on autopay. When I get a new card, I have my closing and bill paying dates adjusted so that my payment is due shortly after my monthly fixed income arrives. This way I can get all of my bills paid on time and not have to think about whether or not I paid them all month long.

8. Telephone Contact With Each Credit Card Company

Having telephone contact is very important. One can use any phone, a landline or cell phone. I make telephone contact with each credit card company when I have questions about my balance, closing or due dates.

Since most of these companies are open 24/7, I enjoy calling very early in the morning. It is usually the quietest time at their end. I’ve enjoyed hours of what become personal interest conversations with their staff who are located around the globe. It is fascinating and one of my favorite tools. In fact one call was such a delight for both of us that the customer service person from Capital One actually sent me flowers!