I'm so happy that I disputed this one as the change in account status below caused a 16 point increase in my EQ score.
Who would have thought that such a simple change could boost my score this much !!! :
CB&T (XXXXXXXXXXXXxxx1) Account opened: 11/2005 Description: Closed or Paid Account/Zero Balance Credit card Previously reported Newly reported Balance: $0 $0 Past due: Not on Record Not on Record Status: Pays account as agreed Pays account as agreed Last activity: 12/1/2006 12/1/2006 Description: Account closed by credit grantor Credit card Closed or Paid Account/Zero Balance Credit card Contact: CB&T, Research Department, PO Box 105555, Atlanta, GA, 303485555
How account changes impact your score: The following are reasons why a change to an account can cause your FICO® score to go up. (A change to an account in the opposite direction can cause your score to go down.)
- The status of the account improved. For example, the status went from "60 days past due" to "currently paid as agreed". An improvement in account status demonstrates an ability to pay debts.
- The balance on the account decreased. Generally, less debt is better for your FICO® score.
- The amount past due on the account decreased. This demonstrates your ability to meet your financial obligations.
- The credit limit on the account was raised while the balance stayed the same. Since carrying a balance too close to the credit limit is a sign of a consumer who needs credit and cannot pay it back, a higher credit limit actually helps your FICO® score.
- The history of late payments or description for this account is revised to be less derogatory. For example, if a late payment on your account was mistakenly reported, correcting this on your credit report may help your score.
