Credit score lowered...again......

[Anonymous]

Well, I previously posted about my CS being dumped because of my being alert to a strange event online while buying a product  and cancelling my card and being re-issued a new card.   I just got a Credit Alert from myFico ....

734 to 716.....never a problem on my part. So my score has gone from 805 to 716 by      1. paying ALL my bills on time   2.Cancelling a CC because I feared I may have been hacked online, then being issued a new number by the same CC company  3. Having a hard inquiry scheduled to be dropped (Aug) due to the 2 year rule.  I'm VERY financially secure and don't need the CROOKSTER BANKERS filthy lucre. The $99 I paid to myFico is considered entertainment money in my annual budget and BOY is it ever worth that fee!  Where else can you get  real-time credit stories and advice online AND  and come to understand the "value" of the credit scoring models?

[bicknar]

I too have a credit card with a lost or stolen status.  Interestingly enough, they are both showing up on my CR.  Both are in good standing, one just has the note as card lost or stolen.  All the rest of the info is the same.  I'm curious as to the effect on my revolving account calculations.  It's one of my older cards and has a credit limit listed.  I'm wondering if that is having positive results or negative.  I'm thinking that it could be either way depending on the age, balance and credit limit on said cards, as well as payment history. 

Maybe someone here has knowledge on if these lost or stolen accounts are counted?  Also, you stated that you cancelled yours.  Does the card show up on your report as cancelled by user or anything like that?  That may be a difference as well.  Also, on the new card, is the age of the account the same or is it brand new?

[AndySoCal]

Bicknar,

the replacement card for the one the was lost or stolen should have the date opened and account history as the one that was lost or stolen. The lost or stolen card should not have any effect on your credit score. When the replacement card was issued your credit history also transferred to the replacement account.

[bicknar]

That is correct.

Both are showing just as you mentioned.  What is behind the scenes and not obvious is what is being used in calculations.  Like you said, it should not... But does it?

A

[honeybunnygal]

As mentioned previously, the age of the account comes into play with the replacement card. Yes, the replacement card will have the same age & history as that of the lost/stolen card. However, the age of the card in relation to your AAoA plays a factor in how the replacement affects your score.

If the age of the card is less than your AAoA, there might be a ding to your credit score if it brings your AAoA down. If the age of the card is greater than your AAoA, you might actually get a boost in the credit score.

Doesn't seem fair, I know, but it seems to be the case from reading these forums. I also recall reading on the forums that the lost/stolen card might only report for a little while. Hopefully someone with a bit more experience in the matter will chime in.

[Anonymous]

These are reasons given for the drop in my CS:

1. You have too many credit accounts with balances.....I have one CC and one monthly car payment, both current

2.You opened a new credit account relatively recently ...Got a new CC from SAME company after online purchase concern, as stated in my first post

3.You've made heavy use of your available revolving credit...I charged two nights motel

 and gas in a three day period (last week) which accounted for $185 or so in charges

OK ... I'll pay $5 CASH if you can help me explain why my CS is at 716 after being 805 with NO dings other than a REPLACEMENT CC....

[bicknar]

OK,  For number one, since you only have 2 accounts and both have ballances That would be a negative. 

For number 2, Even though it's the same company it's a new card.  Can be a ding

Number 3.  Not sure what your Credit Limit is on the credit card, however you will want to keep it under 30% utilization and optimally under 10% otherwise it will be a negative factor.

For how things went...  it sounds like you closed the card and then opened another.  If this is the case, you may have inadvertantly decreased your age of accounts which would be a negative as well.  You will want to check your CR to see if the old card is listed as closed or as lost/stolen.  If it's lost/stolen it may actually help your score even if it looks bad to the eye.

Since it seems that you are in good standing with the CC company, you may be able to just call them and discuss the situation if it's closed and ask that thy change the account status to lost/stolen.  However there may be more folks on these boards with more experience with the positives and negatives of doing so.

If you could post the current status of the old and new cards, including date opened.  Credit Limit.  Current Balances and compare to see if they have the same payment information posted to them that would be able to help pin down exactly where the negatives come into play.

[Anonymous]

Thx bicknar....Yes, I'll check on that. All seriousness aside, my latest CC statement had a $0.00 balance, so no matter how high (or low)  a CC limit, if the card payment is not overdue then I think a LOGICAL person would NOT think a lower score should ensue. But CC scores are logical only if one knows which values are plugged into the scoring model and how each is weighted towards the score.........

[Anonymous]

ericdj, the whole credit industry is the biggest scam around...dangling credit scores in front of us to maximize the amount of money we spend on credit...too little spent and they ding you, too much spent and they ding you...the whole thing should be illegal. 

[Anonymous]

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@Anonymous wrote:

ericdj, the whole credit industry is the biggest scam around...dangling credit scores in front of us to maximize the amount of money we spend on credit...too little spent and they ding you, too much spent and they ding you...the whole thing should be illegal. 

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Funny you say that. I grew up in a family where Dad quit the  banking biz  (about 1952) when he learned that no one would tell him who ran the Fed Reserve and why fractional banking was a good system. He was my financial mentor for sure. Jump to just yesterday.  I know a young computer geek who last year at age 20 became the IT geek for a local bank. When I mentioned my FICO score drop and the bewildering world of scoring he commented that in the time he's been with the bank he's learned what a SCAM (his words) the whole CC world is.  But that's OK...as long as we are aware of the wealthy families who pull the world's financial strings and why the psychopaths at the top want to suck us dry.