@Andy77 wrote:
So, I think I saw on my report a graph and showed what you paid every month and what your balance was that month after the payment.
Example : March 1000 paid 200 April 1500 paid 300 (not in that layout, but you get my drift, it was like a box)
If your fico score has no memory and you alll of a sudden pay off a huge amount of debt, like 75 % of your debt, since the graph in the report showed you carried a balance on these cards for a few yrs then PIF, how is that not hurting your score...meaning then a lender can ask you....if your income is X why did you carry a balance for two years then one day PIF
If the historical balance graph were not there with balances then this would not be an issue, your score and history would be what it would be when the lender pulls
Thoughts
It's not hurting your score because the scoring algorithm doesn't currently look at that data. Just because it's on your report doesn't mean it's used in the calculations.
Actual human underwriters can obviously look at everything on your report and decide for themselves if they feel it's relevant. They are not bound by scores alone but can make decisions based on whatever factors they feel are important.
However, in your given scenario it seems highky unlikely any lender would ask the question you asked. If they did, there are numerous reasons someone might cary a balance over time then pay it off suddenly. The first that comes to my mind is carrying 0% BT offers which are more profitable the longer they are left cycling through reports. Many people also receive regularly scheduled bonuses at their jobs, so that could be the source of the paydown funds.
