topic Re: FICO Score Tanked! :-( in Understanding FICO® Scoring

FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 00:20:23 GMT

My EQ FICO score tanked today. :smileysad: Received a notice from SW that said the following as the reason:

This score decrease may be caused by these 4 new reasons:

You have a short credit history.
You've recently been looking for credit.
You have too many credit accounts with balances.
You have not established a long revolving credit history.

So now my Eq FICO score is 650. I was shocked and sadden by this news. I have two more cc's that still has not reported yet (Discover More and Best Buy), which I'm afraid once they begin reporting, my score will tank even further. :smileysad: So my question is....how long will it take for me to recover from all this?? I'm praying that it will only take six months. I will be able to get my UTL back down by the end of next month which then I plan to only have one card report a balance which will be by Best Buy card because I purchased a computer with the 18 month finance deal. Will my FICO score increase some after that...or do you think it will take six months to a year? So shocking to see it tank like that. :smileysad:

Oh also, I have no baddies, no late payments.. Clean report other than new accounts and inquiries.

Re: FICO Score Tanked! :-(

llecs — Fri, 23 Mar 2012 01:17:33 GMT

What caused it to drop? Was it the Best Buy CC? How many points were lost?

Re: FICO Score Tanked! :-(

JenniferinFL — Fri, 23 Mar 2012 01:26:03 GMT

Deleted because I'm in no position to give advice.. lol

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 01:57:18 GMT

llecs wrote:
What caused it to drop? Was it the Best Buy CC? How many points were lost?

Thanks for responding llecs.... The only reason SW gave for the drop are the ones I cut and pasted in my original post. My Best Buy cc did not even report yet, so it was not that, but I'm afraid it may tank more when it does report...lol. My EQ FICO was 679 and fell to 650.:smileysad: I still have Best Buy AND Discover More that haven't hit my report yet, so I'm so afraid that when they do...it will drop even lower. YIKES!:smileyfrustrated:

Re: FICO Score Tanked! :-(

llecs — Fri, 23 Mar 2012 02:06:42 GMT

Well, you can rule out new accounts, new baddies, updated baddies, etc. You can't rule out the possibility of dropped accounts which could have impacted AAoA and/or length of history, increased util if a CL got cut, or rebucketing (unlikely). If really wanting to know, pull EQ from somewhere. My vote is that something dropped.

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 02:12:45 GMT

llecs wrote:
Well, you can rule out new accounts, new baddies, updated baddies, etc. You can't rule out the possibility of dropped accounts which could have impacted AAoA and/or length of history, increased util if a CL got cut, or rebucketing (unlikely). If really wanting to know, pull EQ from somewhere. My vote is that something dropped.

My AAOA is only 3 months, and my Credit History is 1 year 3 months so I guess that's what caused it to tank, but if that's what it is, then it's puzzling because that's been my AAOA for a while now. After my last two cards begin to report, I will check my score again and see what happens. After that, I will just have to ride it out and hope that my FICO score jumps back up after a while.:smileysad:

Re: FICO Score Tanked! :-(

MarineVietVet — Fri, 23 Mar 2012 02:23:12 GMT

TeeandDee wrote:
My AAOA is only 3 months, and my Credit History is 1 year 3 months so I guess that's what caused it to tank, but if that's what it is, then it's puzzling because that's been my AAOA for a while now. After my last two cards begin to report, I will check my score again and see what happens. After that, I will just have to ride it out and hope that my FICO score jumps back up after a while.:smileysad:

I know it's probably small comfort right but for scoring purposes it's built into the system that your AAoA can never be less than 1 year.

Just a FYI.

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 02:38:49 GMT

MarineVietVet wrote:
TeeandDee wrote:
My AAOA is only 3 months, and my Credit History is 1 year 3 months so I guess that's what caused it to tank, but if that's what it is, then it's puzzling because that's been my AAOA for a while now. After my last two cards begin to report, I will check my score again and see what happens. After that, I will just have to ride it out and hope that my FICO score jumps back up after a while.:smileysad:
I know it's probably small comfort right but for scoring purposes it's built into the system that your AAoA can never be less than 1 year.

Just a FYI.

What do you mean? I'm confused as to what you mean that it can never be less than 1 year. Are you saying that's why my score tanked? Or that my AAOA can't be only 3 months, because that's what my credit report says.... AAOA is 3 months...and my Credit Length or History (I forgot how the title on the report) is 1 year and 3 months. Can you clarfify for me? I'm still learning! :smileywink:

Re: FICO Score Tanked! :-(

MarineVietVet — Fri, 23 Mar 2012 02:55:52 GMT

TeeandDee wrote:

What do you mean? I'm confused as to what you mean that it can never be less than 1 year. Are you saying that's why my score tanked? Or that my AAOA can't be only 3 months, because that's what my credit report says.... AAOA is 3 months...and my Credit Length or History (I forgot how the title on the report) is 1 year and 3 months. Can you clarfify for me? I'm still learning! :smileywink:

Your report can say it's only 3 months but FICO will never score an AAoA less than 1 year. The folks who originally figured out all those formulas built that in. So that actually helps you.

Re: FICO Score Tanked! :-(

llecs — Fri, 23 Mar 2012 03:20:13 GMT

OP, check your credit history again and AAoA. Are you saying your oldest, opened or closed, is 15 months old? And your AAoA is 3 months? In order for AAoA to be at 3 months, you would have had to open at least 5 new accounts within the past month, or 1+1+1+1+1+15 = 20. 20/6 = 3.33 months. Opening that many will have a negative impact on score. Are you sure these new accounts haven't reported yet? And ditto to MarineVietVet. FICO rounds down AAoA to the nearest whole number. It doesn't report AAoA in months, only years.

Re: FICO Score Tanked! :-(

marty56 — Tue, 27 Mar 2012 00:23:43 GMT

You will gain points back by only allowing 1 CC to report a balance. This can be acomplished by known the statement drop date and PIF'ing before that date. In 1 year, the INQs won't be a factor anymore. I would not apply for new credit anytime soon. Just let your accounts age and always pay at least the minimum due as soon as you can and you will be fine.

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 09:47:02 GMT

llecs wrote:
OP, check your credit history again and AAoA. Are you saying your oldest, opened or closed, is 15 months old? And your AAoA is 3 months? In order for AAoA to be at 3 months, you would have had to open at least 5 new accounts within the past month, or 1+1+1+1+1+15 = 20. 20/6 = 3.33 months. Opening that many will have a negative impact on score. Are you sure these new accounts haven't reported yet? And ditto to MarineVietVet. FICO rounds down AAoA to the nearest whole number. It doesn't report AAoA in months, only years.

Yes, that's what it says. My oldest account is a Cap 1 account that opened back in Jan. 2011. This past January 2012, I began apping for new credit cards and now I have about 6 new accounts...two haven't reported yet (Best Buy and Discover). Mostly all were opened in Mid January - Early February. So I guess that's what caused my score to tank. Oh well, nothing I can do to reverse it now. JUst have to wait it out and let time heal it.

Now as far as the AAoA....so are you saying that by 2013, ny AAoA will be 2 years since tney round it off to the nearest whole number?

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 09:49:41 GMT

marty56 wrote:
You will gain points back by only allowing 1 CC to report a balance. This can be acomplished by known the statement drop date and PIF'ing before that date. In 1 year, the INQs won't be a factor anymore. I would not apply for new credit anytime soon. Just let your accounts age and alwaays pay at least the minimum due as soon as you can and you will be fine.

Thanks mary56...that's what I'm gonna have to do because it seems like that's the only thing, along with paying on time of course, that will help my score over the next few months. I already know all my statement drop dates, so by the end of next month, the only cc that will report a balance will be my Best Buy card (because I purchased a computer with the 18 month financing). All the rest I will ensure I pay off before the statement drops.

Re: FICO Score Tanked! :-(

llecs — Fri, 23 Mar 2012 12:27:42 GMT

TeeandDee wrote:
llecs wrote:
OP, check your credit history again and AAoA. Are you saying your oldest, opened or closed, is 15 months old? And your AAoA is 3 months? In order for AAoA to be at 3 months, you would have had to open at least 5 new accounts within the past month, or 1+1+1+1+1+15 = 20. 20/6 = 3.33 months. Opening that many will have a negative impact on score. Are you sure these new accounts haven't reported yet? And ditto to MarineVietVet. FICO rounds down AAoA to the nearest whole number. It doesn't report AAoA in months, only years.
Yes, that's what it says. My oldest account is a Cap 1 account that opened back in Jan. 2011. This past January 2012, I began apping for new credit cards and now I have about 6 new accounts...two haven't reported yet (Best Buy and Discover). Mostly all were opened in Mid January - Early February. So I guess that's what caused my score to tank. Oh well, nothing I can do to reverse it now. JUst have to wait it out and let time heal it.

Now as far as the AAoA....so are you saying that by 2013, ny AAoA will be 2 years since tney round it off to the nearest whole number?

Ah, then that explains it. Was the 3 months listed in your EQ FICO report from myFICO.com or from Equifax.com?

Yes, let's say in Feb. your AAoA was 3 months. That would be 15 months+1month (x6 new accounts). That equals exactly 3 months now. Assuming nothing is added within the next 2 years, then exactly 2 yrs from that point, you'd have 39 months + 25 months (x6 accts). That equals 27 months AAoA or 2-yr AAoA.

Re: FICO Score Tanked! :-(

crunching_numbers — Fri, 23 Mar 2012 14:34:31 GMT

TeeandDee wrote:
My EQ FICO score tanked today. :smileysad: Received a notice from SW that said the following as the reason:

This score decrease may be caused by these 4 new reasons:

You have a short credit history.
You've recently been looking for credit.
You have too many credit accounts with balances.
You have not established a long revolving credit history.

So now my Eq FICO score is 650. I was shocked and sadden by this news. I have two more cc's that still has not reported yet (Discover More and Best Buy), which I'm afraid once they begin reporting, my score will tank even further. :smileysad: So my question is....how long will it take for me to recover from all this?? I'm praying that it will only take six months. I will be able to get my UTL back down by the end of next month which then I plan to only have one card report a balance which will be by Best Buy card because I purchased a computer with the 18 month finance deal. Will my FICO score increase some after that...or do you think it will take six months to a year? So shocking to see it tank like that. :smileysad:

Oh also, I have no baddies, no late payments.. Clean report other than new accounts and inquiries.

First, did INQ's hit? That may be contributing. It sounds like you have a very new and thin credit file. Time is your best ally. I have read on these boards that 6 months to a year is a reasonable time frame for the ding from new accounts to fall away.

Out of curiosity, what were the comments on your previous FICO score report? Were they similar? The differences between them might provide a big clue to the "wise ones" who lurk here. :smileyhappy:

Re: FICO Score Tanked! :-(

TeeandDee — Fri, 23 Mar 2012 16:38:02 GMT

crunching_numbers wrote:
TeeandDee wrote:
My EQ FICO score tanked today. :smileysad: Received a notice from SW that said the following as the reason:

This score decrease may be caused by these 4 new reasons:

You have a short credit history.
You've recently been looking for credit.
You have too many credit accounts with balances.
You have not established a long revolving credit history.

So now my Eq FICO score is 650. I was shocked and sadden by this news. I have two more cc's that still has not reported yet (Discover More and Best Buy), which I'm afraid once they begin reporting, my score will tank even further. :smileysad: So my question is....how long will it take for me to recover from all this?? I'm praying that it will only take six months. I will be able to get my UTL back down by the end of next month which then I plan to only have one card report a balance which will be by Best Buy card because I purchased a computer with the 18 month finance deal. Will my FICO score increase some after that...or do you think it will take six months to a year? So shocking to see it tank like that. :smileysad:

Oh also, I have no baddies, no late payments.. Clean report other than new accounts and inquiries.

First, did INQ's hit? That may be contributing. It sounds like you have a very new and thin credit file. Time is your best ally. I have read on these boards that 6 months to a year is a reasonable time frame for the ding from new accounts to fall away.

Out of curiosity, what were the comments on your previous FICO score report? Were they similar? The differences between them might provide a big clue to the "wise ones" who lurk here. :smileyhappy:

Yes, all the inquiries from the new accounts hit my credit report the day after I applied. The most it every dropped from the inquiries was about a point here and there, but overall it remained steady. I've been inquiry/app free for several weeks now. As far as comments on my previous FICO score report, the only comments I would get before were "New Account" or "Inqurity" and it would show my new FICO Score. This was the first time it had the reason's that I cut and pasted in my original post above.

Also, as an update, the Best Buy credit card hit my report today. As far as my Equifax FAKO score, it actually went up a few points because my utilization decreased. I haven't received an Alert from MYFico yet so I'm not sure the status of my FICO score today with Best Buy reporting. Hopefully I will receive an alert sometime today or over the weekend so I can find out. Trying to hold off on purchasing one since every time I seem to purchase one, miraculously right after that I get a SW alert! LOL!:smileyfrustrated:

I look forwad to paying the balances all down to zero (except one - Best Buy) and hopefully it will breath life back into my FICO score...LOL!