My score is currently lower than DH (mine was 595, his 650), and my record a bit 'dirtier'.
We refinanced mortgage and today the original mortgage was reported as paid off....my score went up 25 and his didn't budge. Last week the HELOC for 35k was also reported as paid/closed and my score went up 5, his didn't budge. Why?
Also, I paid off all of our revolving debt, but for $1500 of mine (which was at 95% util) at the end of June. The payoffs were to AmEx, Chase, and Cap1 - not one of these has generated a Score Watch or change of any kind. Shouldn't we be seeing something?????
I need to apply for a student loan for my student, and I'm waiting to see the fruits of my zero balances before that is done!
There are different factors which affect the fico score. Average account balances is one that gets overlooked a lot. Here is what you can do. The two of you need to sit down togtehr and comapre both reports. For each person right down the account, month & year it was opened, & write down for how long. For example: Chase Visa opened 5/1998 Current date is 7/2008-therefore the acocunt is 10 years and 2 months old.
Chase Visa opened 5/1998 age of account 10 years 2 months old 122 MONTHS
Wells Fargo Loan opened 5/2002 age of account 6 years 2 months old 74 MONTHS
Toyota car loan opened 12/2006 age of account 1 year 7 months old 19 MONTHS
NEW AVERAGE OF ALL AVERAGE ACCOUNTS 1 YEAR 6 MONTHS 71 MONTHS
You add all three accounts and then you divide by three. There are 12 months in a year. So 10 years equlas 120 months. If have six accounts then you divide the number by six.
By adding new accounts you lower the average account age.
This is one example. Like I said there are other factors involved such as number of inquiries, types of accounts, how old an account is, etc.
Another possibility can be if the creditor does not report what the credit limit is on any revolving account.
This is why I contradict conventional wisdom and recommend that young people get several lines of credit early in life. This way, the build account history and age as early as possible. By the time they graduate from college and get ready to buy a home, they've got four or five years of history, and a new account or two won't ding their average age very much.
- - - - in a credit-scoring postnuclear Stone Age...