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Established Member
Posts: 31
Registered: ‎10-11-2007
0

Has Fico Changed the way it scores?

I've been getting our score every year since 2001 and with very hard work, it has gone up every single year.  Last year's score was 781.  I just did this year's and it dropped to 748!!!!  Nothing has changed except we owe $8,000 LESS money than last year and one less account with a balance.  What's going on here!!!  No new accounts opened.  No inquiries.  No judgements etc. Everything on the report seems accurate so why the drop?  Does anyone know? Smiley Sad
~~Ethics are so annoying. I avoid them on principle.~~
Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007
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Re: Has Fico Changed the way it scores?

[ Edited ]
Did any old accounts age off?

Remember, once you get above the mid-700s, you're well above average, and the FICO scoring system "wants" to trend you toward the mean. This is why, for example, a 30-day late that would have dinged you 20 points with a 597 score hits you with 40 or 50 points of damage if your score is 785, and 60 points or more if you're sitting pretty at 840.

Points of damage...hmmm...reminds me of my Dungeons and Dragons days...

DUNGEON MASTER: "Coming from around the bend are 4 orcs and a bugbear."

PLAYER: "Uh-oh. I pull out my wand of bad credit and hit them with a 90-day late"

(gasps from around the gaming table)

DUNGEON MASTER: "Time to roll initiative...oops...you lost...and the bugbear is actually a COLLECTION AGENT in disguise...he hits you with a charge-off...how many FICO points did you say you had?"

PLAYER: "Uh...I think I'm dead..."

Message Edited by TheNewWorldMan on 10-11-2007 07:34 PM
- - - -
in a credit-scoring postnuclear Stone Age...
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
0

Re: Has Fico Changed the way it scores?

Maybe they added new buckets. I've noticed some changes recently and thought the same thing because certain actions are triggering different scores lately on my profile. But I've had so many changes I could have pushed my self in to a very different bucket. When AU's start posting that their scores dropped that's when they changed it. I am sure we will hear about it. Smiley Sad So probably no changes. But I don't know. I just know for sure my actions are triggering different scores.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Has Fico Changed the way it scores?

Next year. No changes yet on the scoring.
Established Member
Posts: 31
Registered: ‎10-11-2007
0

Re: Has Fico Changed the way it scores?

This whole thing is really bugging me.  If no known changes have been made regarding the way FICO sets the score then I am flummaxed!!
 
2006 Score 781
Positive Factors
No late payments
Long Credit History 31 Years
Low Proportion of Balances to credit limits
Negative Factors
Most Recent Account Opening is very recent
 
2007 Score 748
Positive Factors
No late payments
Long Credit History 32 Years
Have Limited Use of Available Credit
Negative Factors
Too many credit cards carrying balances [Lower than last year]
Amount Owed on revolving accounts is too high [Lower than last year]
 
Same number of accounts as  last year with one less account having a balance.
 
I keep thinking I'm going to get an email from them saying "We're Sorry, we meant to say 784!!!
 
~~Ethics are so annoying. I avoid them on principle.~~
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Has Fico Changed the way it scores?

Maybe a new score card?
Put one more of the CC's to $0 and see if it makes a difference.



lilacteapot wrote:
This whole thing is really bugging me. If no known changes have been made regarding the way FICO sets the score then I am flummaxed!!
2006 Score 781
Positive Factors
No late payments
Long Credit History 31 Years
Low Proportion of Balances to credit limits
Negative Factors
Most Recent Account Opening is very recent
2007 Score 748
Positive Factors
No late payments
Long Credit History 32 Years
Have Limited Use of Available Credit
Negative Factors
Too many credit cards carrying balances [Lower than last year]
Amount Owed on revolving accounts is too high [Lower than last year]
Same number of accounts as last year with one less account having a balance.
I keep thinking I'm going to get an email from them saying "We're Sorry, we meant to say 784!!!



Established Member
Posts: 31
Registered: ‎10-11-2007
0

Re: Has Fico Changed the way it scores?

I forgot to mention in my previous posts that this score is actually lower than my previous 3 scores!!
 
2004~751
2005~754
2006~781
2007~748
 
I am extremely **bleep** when it comes to my finances and I keep track of my spending right down to a catagory for "office supplies:ink" in my Quicken.  I do not subscribe to any credit reporting agency but simply pay the $15.95 for a report once a year.  I've always used the Equifax at Fico.  I'm not sure what I should do at this point or whether I should just shrug and wait another year to see if it changes. 
Smiley Sad
 
 
~~Ethics are so annoying. I avoid them on principle.~~
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Has Fico Changed the way it scores?

If you are really curious- and/or concerned about your scores. I would sign up for a monitoring service.

http://www.coastalfcu.org/credit_reports.htm

Also pull all three free annual credit reports from annualcreditreport.com

You also need to remember you are being rated with your peers - So it isn't that you are doing a poor job of managing your credit, it's that your peers with the same long history, and low CC usage have changed.

Given the stats you provided why aren't you at 800?
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
0

Re: Has Fico Changed the way it scores?

Great EQ link!!! Thanks.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Established Member
Posts: 31
Registered: ‎10-11-2007
0

Re: Has Fico Changed the way it scores?

Interesting....I went back to my score online and used the Fico Simulator to see what would bring my score up.  According to the Simulator, if I paid down 90% to 100% of my debt, my score would go up to 768 !!  Still below last years score!!
 
My FICO score ingredients
 
Payment History~Great
Length of Credit History~Great
Amount of New Credit~Great
Amount of Debt~Very Good 
 
What would you possibly have to do to get a score of 850? 
~~Ethics are so annoying. I avoid them on principle.~~
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