Has FICO Scoring Changed

[ScoreBooster]

I'm also scratching my head and trying to find out what happened. I received a score-alert (EQ) end of August - my score dropped about 30 points..

myFico always delivers a "reason" for it - and it shows a disputed account with LVNV. What? First, I only disputed it with TU and second, how can the dispute of a derogatory account have a negative impact on my score? And no, it's not my eldest account and certainly has nothing to contribute to my score. So again, what happened there?

Granted, my credit-report is a mess but I didn't miss a payment for 2,5 years now so I was hoping my score would go up. And now, after reaching 543 points, I'm back to 517 and don't know why..

[Anonymous]

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@llecs wrote:

CLDs are happening to everyone. It tends to happen most to people who carry large balances over a period of time, those who are late, or those who tend to max out their CCs. Though CLDs have happened to folks in here with 800+ FICO scores, those who had less than 1% reporting, and to those who had a seemingly long history with no issues. It is happening across the board.

I received on CLD with Bloomingdales. The CC went from $2300 to $200. The reason they gave was adverse action on EX. Now I am 100% positive nothing happened on EX as I pull daily, but in talking to a CSR I learned that it was basically an excuse with no logic or reasoning behind it. In short, don't trust their reasons as to why you experience an AA. BTW, in talking to them and asking the right questions, they admitted that no CLD should have happened and they bumped it back to $1500. I'll take what I can get.

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 Any guidance on "the right questions"?   This week I was planning to call Amex (cut my CL by 85% this weekend!) Chase and Cap One to ask questions.  If there are any tips on what to say or what not to say, I'll gladly keep them in mind.

 I involuntarily joined the ranks of the "under-employed" this year.  I'm currently getting by on significantly less income than I had in previous years, a situation I hope is quite temporary.  I presume this is not something I want to lead with while trying to restore my credit lines?   

[Anonymous]

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@LynetteM wrote:

Every cc company seems to be pushing BTs these days, and I wondered if the cc companies were giving with one hand and FICO was taking away with the other.

Edit: I wrote this before reading the above post....humm.

Message Edited by LynetteM on 09-06-2009 10:52 AM

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Lynette-

 I didn't see anything to indicate the balance transfer affected my FICO directly, so if that was your question then I agree with the earlier responses of "no".  

But if individual card companies react to a transfer with action of their own, it could have an indirect effect, which is what I am at least suspicious of.

Keep in mind I've been actively managing my credit since mid-July when this started, so I'm new to the game.  

[Jazzzy]

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@Anonymous wrote:

 Any guidance on "the right questions"?   This week I was planning to call Amex (cut my CL by 85% this weekend!) Chase and Cap One to ask questions.  If there are any tips on what to say or what not to say, I'll gladly keep them in mind.

 I involuntarily joined the ranks of the "under-employed" this year.  I'm currently getting by on significantly less income than I had in previous years, a situation I hope is quite temporary.  I presume this is not something I want to lead with while trying to restore my credit lines?   

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Hi...did AmEx give you a reason for the CLD?

[Anonymous]

No - but I was notified by an automated phone call that promised more information would be coming in a letter.  I plan to call them this week whether or not the letter shows up.  

I'm only waiting as I want to make sure I am a little more rational when I speak to them than I was yesterday when I got the news! 

[Jazzzy]

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@Anonymous wrote:
No - but I was notified by an automated phone call that promised more information would be coming in a letter.  I plan to call them this week whether or not the letter shows up.  

I'm only waiting as I want to make sure I am a little more rational when I speak to them than I was yesterday when I got the news! 

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Hey...and it's a 3-day weekend...even more time to cool off! I can relate to your need to wait. I'm famous for shooting myself in the foot when I'm angry or emotional. I'm much better at it now...but it takes being aware of the tendency.

Have you pulled your credit reports to see if something in your reports may have prompted their action? Best to go into the phone call with all prior knowledge you can get.

[creditwherecreditisdue]

You've unfortunately gotten yourself caught in a tailspin of high utilization. The AA stemming from high utilization makes the utilization even worse. That's why we have continually discussed the importance of bring utilization down, specially in this credit market. Amex and Chase particularly don't like this, and Amex is constantly looking - frequently monthly!

[Anonymous]

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@LynetteM wrote:

. . .

Have you pulled your credit reports to see if something in your reports may have prompted their action? Best to go into the phone call with all prior knowledge you can get.

 

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Yup, I pulled TU and EQ from MyFico yesterday, and pulled EX via my annual report.  The only negatives of significance are my balances, which in total are significantly less than a couple of months ago, but are distributed differently.    

Emotional phone calls can definitely result in damage to the feet!

[Anonymous]

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@creditwherecreditisdue wrote:
You've unfortunately gotten yourself caught in a tailspin of high utilization. The AA stemming from high utilization makes the utilization even worse. That's why we have continually discussed the importance of bring utilization down, specially in this credit market. Amex and Chase particularly don't like this, and Amex is constantly looking - frequently monthly!

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Understood - but for someone who lost much of his income during the current economic situation, paying down the utilization is obviously easier said than done.  When I do find I have available cash, it's hard to know whether I should pay down a credit card (and risk that I will lose the CL immediately after) or simply keep the cash on hand so I don't need to use the credit.  

Your observation on Amex and Chase makes sense - Chase and Cap One hit me at the end of July which would have reported in August.  Amex probably just pulled my August info and nicked me this week.  Sigh.    

I'm still wandering through the forums and finding valuable information, but if you have any pointers to discussion threads with any insight on dealing with this (other than the obvious statement of "pay it off" - which is clearly my goal when possible) I'd be forever grateful.  

[creditwherecreditisdue]

Things are not the same or better. Your utilization is considerably worse. 95% utilization on a revolving TL is not good. And while your balances may have decreased your overall UTIL is likely to be up. If you have a baseline report for comparison what are the before and after overall UTIL %'s and highest UTIL % on an individual account. Missed payments are only one piece of the puzzle, albeit a large one. Other things matter very much as well. Remember, issuers are also looking at factors that do not appear on your CBR, like income to revolving debt and income to available revolving debt ratios.

Also, be very careful protesting with Amex. You could be requested to submit to an FR and asked to provide proof of income.

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The problem isn't using a BT offer. The problem is what you look like after you do the BT. This is why I do not like to BT to an account if will take me over 50% and don't like to stay there for long. 35% is pretty safe. I prefer to below that.