After achieving a 760 FICO credit score, I thought the next milestone would be 800. Since there are multiple FICO scoring models that lenders use, an 800 FICO would almost guarantee me at least a 760 on other FICO models. My credit history length is hitting 3 years in January 2015, and my AAoA (average age of accounts) is going to reach 2 years in February 2015. Since FICO scores tend to increase at these factors’ milestones, my score is probably going to achieve the maximum in February 2015 before hitting the plateau. And since I have several credit inquiries from the auto loan applications in February 2014, in February 2015 when they drop off, I’ll have a decent shot at an 800 FICO.
As of today, my FICO 08 credit score based on Equifax as provided by my Score Watch subscription is standing at 759. That is 41 points from 800. To overcome the difference, I have sketched out a plan for the next 3-4 months. First of all, I am not going to apply for credit, to protect my AAoA and number of inquiries. Secondly, I am going to apply the techniques described in the post on how to increase my FICO score in 1 month, keeping credit card utilization low. Thirdly, I am going to make some extra payments toward my auto loan to decrease the remaining balance.
And finally, I am just going to wait for the inquiries to drop and the credit history length and AAoA to reach their respective milestones. It goes without saying that I am going to maintain my perfect payment history as well.
I have been working hard on my credit for the past 2 years and 19 months. In 3-4 months, I am going to reap the ripe fruit of my labor. Wish me luck.
Best,
-Richard
Hiep's Finance 