Before the conversion, my EQ score was 672. I understand the changes that occurred and am grudgingly accepting of the change in score (to 647) due to the conversion. What's confusing me more is the "rating."
In May, with the old 04 scoring model I was as follows:
Payment History = Not Good
Amount of Debt = Good
Length of Credit History = Good
Amount of New Credit = Not Good (refi car loan and 2 new cards in Feb)
Overall = Good (Your score is near the average score of U.S. consumers, and most lenders consider this a good score.)
Under the 08 Model:
Payment History = Good
Amount of Debt = Good
Length of Credit History = Good
Amount of New Credit = Not Good (refi car loan and 2 new cards in Feb)
Overall = Not Good (Your score is below the average score of U.S. consumers, though many lenders will approve loans with this score.)
How do I have 75% = good and 25% = not good and then average a "not good?" Is it all because of the way things are weighted differently? As I said, I understand the score change, but expected my rating to be the same. Can I assume that after a year, my "amount of new credit" will revert back to "good"?
- For the payment history being "Good" - I'm surprised because I had 120 day lates in Feb 2013 on a student loan, which although only one payment, reports on 6 lines.
- Also, it says lenght of credit history is good, but then in the explanation it has "short credit history" as hurting my score! which is it??
- The new model seems to not like my student loan balances - I'm on IBR so they're staying high even though I pay them every month! As above, on the summary it says my amount of debt is good, but then says the amount on my installment loans (student loans) is hurting me.
Any insight? I can't change the student loan amounts - as I said, I'm on IBR, but also work for a nonprofit so in 7 years the amounts should be forgiven. Until then, my monthly payment isn't enough to cover the interest so the balances will increase. I feel as though student loans should be weighed differently!
The only thing I'm interested in now is a mortgage so I know that the 08 score doesn't mean anything, but the ratings and inconsistencies between ratings and also between score summary and score explanation bug me.
Starting Score: 2/2013 EQ 535
I *think* the overall rating is a simple calculation on the score, not on anything else. I don't really put too much weight on those. Also as you point out the weightings in the scorecard throw it off too: high credit card debt, or worse, bad payment history, dominates. The other 35% or whatever it is doesn't rate compared to those when it comes to a blended average.
TBH, the credit report "insights" are educational in nature, and as such they're very, very generic. It sounds as though you have good handle on your finances and your credit report, I personally wouldn't worry about what a generic quick hit opinion is of my credit report.
Thanks Revelate!