Credit Karma - percentage of on time payment

[dang729]

I recently closed one of my credit cards to avoid the annual fee.

After it closed, credit karma updated the percentage of on time payments and removed about 50 on time payments, which lowered my on time percentage ratio from 98% to 96%.

Is this something that's just for entertainment on CK? Or should I hav elect the account open. I know that the positive trade line will report for 10 years, but does it lower the on time payments as well as the AAoA? That also dropped on CK from 72 months to 53.

Any information is appreciated. Thanks!

[gdale6]

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@dang729 wrote:
I recently closed one of my credit cards to avoid the annual fee.

After it closed, credit karma updated the percentage of on time payments and removed about 50 on time payments, which lowered my on time percentage ratio from 98% to 96%.

Is this something that's just for entertainment on CK? Or should I hav elect the account open. I know that the positive trade line will report for 10 years, but does it lower the on time payments as well as the AAoA? That also dropped on CK from 72 months to 53.

Any information is appreciated. Thanks!

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CK disregards closed accounts for payment history and their AAoA calculations, Fortunately no one uses the TU New Accounts Model to make credit decisions. Fico will take into account both your closed and open accounts in calculating AAoA and also use the payment history. CK is good to monitor changes but disregard its score and AAoA.

[dang729]

Thanks for the info gdale!

[EW800]

One other area that I have found CK gets wrong, at least within my profile, is the grade for extremely low utilization. I carry about $10 to $20 balance each month on one account, out of about $70K in CL. CK calculates that as 0%, therefore gives my utliization grade a "C". Thankfully, all other scoring models that I am aware of recognize that the one balance is above $0 and calculates it as a positive.

I agree with so many others - CK is great for monitoring, but not real beneficial as far as scores of grades.

[takeshi74]

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@EW800 wrote:
I agree with so many others - CK is great for monitoring, but not real beneficial as far as scores of grades.

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It's not just CK.  You can't rely on one algorithm to determine what a completely different algorithm will do.  Even if both alogrithms are FICO.  Expect different algorithms to produce different results.  There could be cases where they're coincidentally close but that's coincidence and not causality.