Incorrect Scoring

[Anonymous]

I recently had my credit checked for a loan. Score was 795, but I find fault with some of the reasons listed for lowering my score. For instance  "Code 05: You have too many accounts with balances" and "Code 11: You owe a high amount on your revolving accounts, which may include credit card balances" Both of these are basically incorrect. I don't think the whole picture is taken into account. Every month my Visa bill is from 3 to 5 thousand dollars; however, it is paid in full each month. I don't think that is taken into account, as I have no high amounts on my revolving accounts, as all are paid in full each month. I would consider that a positive instead of a negative. In addition at that particular time I had only one account with a balance, which was a note on a motor home. I never missed a payment on that account, in fact I put in an extra thousand early as a buffer.

[Bella1980]

what is your question.

Also, you have to PIF before the statement cuts for that balance to not report on your credit reports. Do that and you may see a rise in score.

Also, 795 is not going to get a higher apr for anything than if you had a 805.

[MidnightVoice]

I suugest you read scoring 101, as this may explain why high balances are bad for your score!

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654&jump=true

FICO does not know that you pay in full!!

[haulingthescoreup]

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@Anonymous wrote:

I recently had my credit checked for a loan. Score was 795, but I find fault with some of the reasons listed for lowering my score. For instance "Code 05: You have too many accounts with balances" and "Code 11: You owe a high amount on your revolving accounts, which may include credit card balances" Both of these are basically incorrect. I don't think the whole picture is taken into account. Every month my Visa bill is from 3 to 5 thousand dollars; however, it is paid in full each month. I don't think that is taken into account, as I have no high amounts on my revolving accounts, as all are paid in full each month. I would consider that a positive instead of a negative. In addition at that particular time I had only one account with a balance, which was a note on a motor home. I never missed a payment on that account, in fact I put in an extra thousand early as a buffer.

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This is something that very few people realize: The balances that are used by the credit bureaus in calculating scores are the balances showing on your statements.

Many of us get around this by paying our accounts online several days before the statements post, so that they will report $0.

Yes, it's dumb, and yes, it would make more sense IMO to report the balance remaining unpaid on the due date, but this is how they work it.

Most people need to have at least one account reporting a very minimal balance (and then pay it off), but those of us who have at least one account still showing that is 20 years old or so often do better to have all reporting $0 balances.

I used all my cards a lot, but they all report $0 except for one 0% balance transfer card.


edit to insert two tiny but important words!

Message Edited by haulingthescoreup on 08-17-2008 02:17 PM

[Anonymous]

Most of us here would love to be able to complain about a 795.  Seriously, it is almost impossible to raise that score.  You would have to know exactly when every account you have reported, make sure it is PIF immediately prior, and then have just the perfect mix of creidt cards/store cards, installments, etc.  At that score, all you should really be worried about is making sure it doesn't drop.  Those remarks are kind of like them saying that we can't not say anything so here are the factors on your account.  Unlike somone running 80% util or serious credit problems or such where there is plenty of real reasons listed.

[haulingthescoreup]

Actually, improving reported util is probably the only practical way to quickly raise scores as high as this. There's an excellent chance that this is the only problem on OP's reports --too many with balances and too high util, both of which could be turned around pretty much within one billing cycle.

[Math_Rocks]

Welcome to the boards!

HTSU, does it sound like his scores are from TC (based on the comments)?

[haulingthescoreup]

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@Math_Rocks wrote:
Welcome to the boards!

HTSU, does it sound like his scores are from TC (based on the comments)?

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I wondered about that, but having the code numbers makes me think it's not TC, at any rate. And since almost all lenders pull FICO's....

And I have gotten those dings, although not necessarily the exact phrasing.

OP, did they tell you which bureau they pulled, (EQ, TU or EX), and if it was a FICO score?

The other possibility might be a Vantage score, maybe.

[Anonymous]

795. FICO does not take in to count that you PIF monthly. Only what is on your CR at the moment your scores are pulled. FICO doesn't know that you will PIF the next time if the CC company did not report it yet. The only way to get around this is to PIF before your statement closes and not use the card again until after it reports $0 bal.

[Anonymous]

Tis a forum, don't need a question.

Just pointing out that the system is not accurate. It's the principle of the thing.