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Moderator Emeritus
fused
Posts: 16,166
Registered: ‎03-12-2007

Re: Has Fico Changed the way it scores?



lilacteapot wrote:
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? :smileysad:


What are the credit limits and balances of each CC reporting a balance? My TU went from 792 to 761 with an increase from 6% overall util to 18%.
Established Member
lilacteapot
Posts: 31
Registered: ‎10-11-2007

Re: Has Fico Changed the way it scores?



fused wrote:


What are the credit limits and balances of each CC reporting a balance? My TU went from 792 to 761 with an increase from 6% overall util to 18%.


 
2007~One of my positives states I've limited the use of my available credit.
 
It a side bar it states Ratio of your revolving balances to your credit limits...12%...For FICO High Achievers, this ratio is 7% on Average.
 
2006~You have a low proportion of balances to credit limits on your revolving accounts...12%....The average carried by US consumers is 40%.
 
So my debt has gone down but my credit limits have gone up.  And what's wrong with these numbers????
 
The High Achievers must mean something but I'd rather have the trophy if you get what I mean.  What difference does it make to be a High Achiever if your score drops like a rock and is less than what it was 3 years ago?
 

~~Ethics are so annoying. I avoid them on principle.~~
Moderator Emeritus
fused
Posts: 16,166
Registered: ‎03-12-2007

Re: Has Fico Changed the way it scores?

[ Edited ]


lilacteapot wrote:


fused wrote:


What are the credit limits and balances of each CC reporting a balance? My TU went from 792 to 761 with an increase from 6% overall util to 18%.


 
2007~One of my positives states I've limited the use of my available credit.
 
It a side bar it states Ratio of your revolving balances to your credit limits...12%...For FICO High Achievers, this ratio is 7% on Average.
 
2006~You have a low proportion of balances to credit limits on your revolving accounts...12%....The average carried by US consumers is 40%.
 
So my debt has gone down but my credit limits have gone up.  And what's wrong with these numbers????
 
The High Achievers must mean something but I'd rather have the trophy if you get what I mean.  What difference does it make to be a High Achiever if your score drops like a rock and is less than what it was 3 years ago?
 



Is there a mortage on your reports, open or closed? Balance?


Message Edited by fused on 10-13-2007 12:16 PM
Established Member
lilacteapot
Posts: 31
Registered: ‎10-11-2007

Re: Has Fico Changed the way it scores?

No Mortgage.  Once our children were grown we decided we didn't want the hassels of owning a home any longer,  so we do apartments and listen while maintenance cuts the grass.:smileyhappy:
 
~~Ethics are so annoying. I avoid them on principle.~~
Moderator Emeritus
fused
Posts: 16,166
Registered: ‎03-12-2007

Re: Has Fico Changed the way it scores?



lilacteapot wrote:
No Mortgage.  Once our children were grown we decided we didn't want the hassels of owning a home any longer,  so we do apartments and listen while maintenance cuts the grass.:smileyhappy:
 


This is my best guess as to why your score dropped.
 
1.) I believe you might have very well moved up a scorecard.
2.) Although your util is fairly low at 12% it's still too high in your new scorecard
3.) You have more revolving accounts with balances than others in your new scorecard
4.) I have to believe the majority of others in your new scorecard have a least one mortgage TL and this helps optimize a credit mix.
 
In essence I think you're losing points for these reasons. When it comes to scorecards, FICO is ensuring apples are compared with apples. I think you were really doing well in your previous scorecard and now you have to tread water for awhile.
 
I think the typical credit profile of someone in your new scorecard would read like this (yes this is a guess but it's an educated guess as I continue to research this subject; it's almost an obsession for me) :
 
credit history of more than 30 years and an average-age of accounts of at least 8-10 years
1-2 mortgage TLs with at least one paid 
3-5 installments and maybe all but one paid
8-10 CC accounts with 2-4 open and very low balances(I'm guessing way lower than 9% util) and maybe a couple PIF
0 inqs
0 baddies of course
0 late payments
Moderator Emeritus
fused
Posts: 16,166
Registered: ‎03-12-2007

Re: Has Fico Changed the way it scores?

This thread really has me thinking. I might go ahead and PIF 3 of my 5 CC balances that are reporting 1-9% util and see what happens. When I did this before nothing good or bad happened. I want to see if I'm in a high enough scorecard where this might boost my scores some.
 
Can you believe this, I might actually be agreeing with smallfry!:smileyhappy: Has this ever happened??
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,114
Registered: ‎04-01-2007

Re: Has Fico Changed the way it scores?


fused wrote:
I think the typical credit profile of someone in your new scorecard would read like this (yes this is a guess but it's an educated guess as I continue to research this subject; it's almost an obsession for me):

credit history of more than 30 years and an average-age of accounts of at least 8-10 years

1-2 mortgage TLs with at least one paid

3-5 installments and maybe all but one paid

8-10 CC accounts with 2-4 open and very low balances(I'm guessing way lower than 9% util) and maybe a couple PIF

0 inqs

0 baddies of course

0 late payments
Well, thanks bunches, fused, that's just spiffy. Nice to know which bucket I'll be in when I'm 79. sheesh (--sorry lilac, good luck!)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
fused
Posts: 16,166
Registered: ‎03-12-2007

Re: Has Fico Changed the way it scores?

It's a guess, but if I'm not right I think I'm darn close.:smileyhappy:
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: Has Fico Changed the way it scores?

:smileywink: fused this is what I hear helps most with very high scorers. People like me and with scores slightly lower might benefit from a little utilization. Once my new accounts stop hurting I can find out more. I am basically treading water with little score change for the past few months. Time to stop applying.
Established Member
lilacteapot
Posts: 31
Registered: ‎10-11-2007

Re: Has Fico Changed the way it scores?

Well, from the previous 4 posts, I can say right now that I don't plan on adding a McMansion to my debt just to up my score.  Been there, done that.  If some builders in my area would get a grip and start realizing that there is a Boomer population out there would like to have a little Bungalow or English Cottage type house with 2 Master Bedroom Suites, a great room and room to plant a petunia or rose bush and all other maintenance provided, we might consider it.  Both Hubby and I have reached the stage in our lives that we would rather gnaw off a limb, than get out and cut grass or fix the toilet.
 
If I were to apply for say a new car, wouldn't I get a better rate with a 781 than I would with a 748?  How does the dealer know that I'm a so called "High Achiever" and why has this info NEVER been included in any article I've ever read about improving your score.  It just tees me off to suddenly find out that improving your credit does not necessarily raise your score.
~~Ethics are so annoying. I avoid them on principle.~~

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