06-24-2007 03:24 PM
Say your most recent balance on the card was $2,000. That appears to be a very high usage of credit when your substitute limit is just $2,500, not the actual $5,000. Now you appear to have a utilization ratio of 80 percent and your credit score could be depressed significantly -- 20 to 50 points or more -- according to Terry Clemans, executive director of the National Credit Reporting Association.
A 50-point decrease could mean a 1 percentage point difference in your mortgage rate quote, according to Fair Isaac's MyFico.com Web site. On a $216,000 fixed-rate, 30-year mortgage last week, an applicant with a 660 FICO would typically be quoted 7.07 percent, or $1,447 a month in principal and interest. An applicant with a 610 FICO would be quoted 8.05 percent, with a payment of $1,592, or $145 more.
06-24-2007 06:24 PM
06-24-2007 07:37 PM
06-25-2007 08:57 AM
lkenney wrote:The CRA's have a class action lawsuit against them because they allow Capital One to NOT report a credit limit. This can affect a consumers score by as much as 50 points!!!!
06-25-2007 09:16 AM
06-25-2007 09:29 AM - edited 06-25-2007 09:30 AM
Thanks for the link. I understand the issue of CapOne not reporting CLs and the effect on your score.
The Washington Post article (only part of it is available) confirms what I said -- that CapOne is not required to report CLs to the CRAs. Unfortunately the part of the article which explains why the CRAs are doing something illegal is not accessible.
"Capital One is not named as a defendant in the suits. Under the prevailing, voluntary credit system in this country, no federal law requires it, or any other lender, to report any client's data to any bureau. However, federal law does require the credit bureaus to strive to be accurate, and [William A. Harris Sr.]'s suits argue that Equifax, Experian and TransUnion are not in compliance."
06-25-2007 09:58 AM
06-25-2007 10:14 AM - edited 06-25-2007 10:15 AM
06-25-2007 11:01 AM
06-25-2007 03:06 PM
masdeocho wrote:CapOne has no legal obligation to report info to CRAs, only to correct wrong info it previously reported. So it has no duty to report CLs to any CRA.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.