How to dispute invalid reasons for lower FICO score

[Anonymous]

I just ordered my credit report and FICO credit score from Equifax and discovered that my FICO score is 717. I was shocked to see such a low score.  My credit record was perfect until last year, when I missed one payment to Capitol One. (I was only a few days late, but when I paid it off and cancelled the card, they penalized me by putting a bad mark in my credit report. Lesson learned. Don't cancel a credit card if you have had a recent late payment. They won't report late payments if you are still a customer.)  Missed payments was one of the reasons cited in the FICO score, but it is hard to believe it would have such a huge impact.

When I looked at the other reasons for a low score, they had no data in the Equifax credit report to back them up. I called Equifax and after the person on the phone (Paula of Team # 4) confirmed that the reason codes were "not directly relevant" she told me to call FICO at 800-777-2066 to dispute the reason codes that were invalid. However, if you call this number, you only get a recording in a soothing voice telling you that there is nothing you can do but talk to the credit agencies. (They go on for about three minutes spelling out each URL as you wait patiently to talk to someone, and then they hang up on you. Nice!)

Here are the reasons that were provided which are NOT valid:

1. The time since your most recent account opening is very recent.
This may be due to a mortgage that we opened in April and paid off in July.
The account is now closed. This issue is being investigated by Equifax.

2. You have a relatively high number of consumer finance company accounts being reported.
Reality: Equifax shows accurately that the number of these accounts I have is zero.

3. The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too hig.
Reality: The total proportion is less than 10% and the highest on one card is 33%. So it is below 50%, therefore this is not relevant.

Is it possible that this false information is coming from one of my other credit reports, not Equifax?
If not, is it possible to dispute a reason code from FICO when it is not supported by the data from any of the agencies?

Please advise, because I am taking out a loan for a car soon and this false information causing a low FICO score is going to cost me thousands of dollars in the long run. It is incredibly frustrating to know there is false information in my FICO credit score and to have absolutely no way to do anything about it.

Message Edited by Live_Free on 10-04-2007 11:44 AM

[MidnightVoice]

They invent reasons if they don't have any.  For example:

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MidnightVoice wrote:

Good stuff from my EQ report - What’s helping your FICO score

You have an established credit history.

Your oldest account was opened 20 years ago

Most FICO High Achievers opened their oldest account 19 years ago, on average.

Average age of your accounts 8 years

Most FICO High Achievers have an average age of accounts between 6 and 12 years

Bad stuff from DW's EQ report - What’s hurting your FICO score

You have a short credit history.

Your oldest account was opened 20 years ago

Most FICO High Achievers  opened their oldest account 19 years ago, on average.

Average age of your accounts 8 years

Most FICO High Achievers have an average age of accounts between 6 and 12 years

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Message Edited by MidnightVoice on 10-04-2007 05:09 PM

[scramblingin2007]

I wish my score was a 717!

[haulingthescoreup]

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@Anonymous wrote:

I just ordered my credit report and FICO credit score from Equifax and discovered that my FICO score is 717. I was shocked to see such a low score. My credit record was perfect until last year, when I missed one payment to Capitol One. (I was only a few days late, but when I paid it off and cancelled the card, they penalized me by putting a bad mark in my credit report. Lesson learned. Don't cancel a credit card if you have had a recent late payment. They won't report late payments if you are still a customer.) Missed payments was one of the reasons cited in the FICO score, but it is hard to believe it would have such a huge impact.

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Two observations: 1--Ah, if only it were true that CCC's don't post lates on current customers. 2--You bet it's a huge impact. Play with the simulator (not gospel, but an interesting guide) to see what happens with one missed payment--I keep seeing 50 points each. 3--(Yes, I know I said two) Those whose scores are in the upper 700's and 800's take huge hits from things that don't hit the rest of us slobs so dramatically. Fun at the upper end of the bell curve!

Good luck cleaning the junk out. It's astonishing to me that agencies with such power over people's lives are allowed to be so inaccurate and unresponsive.

[Anonymous]

they definitely need to be regulated.  they have too much power.  i am still low on equifax because they did not want me to close monthly monitoring service.  i actually had to argue with them to get it closed.

[Anonymous]

Wow...life can be rough at the upper eschelons!  50 points for a late?!  Ludicrous.  Midnight Voice (I think) wrote a good post talking about 'scorecards' and how different actions affect people at different levels of credit worthiness.  It alludes to the bell curve haulingthescoreup talks about, but according to the post, a late might only hit me (don't ask, I'm so confused as to my real score, I'm seeing things, but something between 580 and 700, depending on where I look) for 20 points if recent, but you being the 'upper crust' may get nailed by 50+ points.  I'm not saying it makes sense, only that it's a better explanation than I can offer...And I agree, these knuckleheads have WAY too much power over us!  Should we revolt?

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=10004&view=by_date_as...

Page 2 response 17

[haulingthescoreup]

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@Anonymous wrote:

Wow...life can be rough at the upper eschelons! 50 points for a late?! Ludicrous. Midnight Voice (I think) wrote a good post talking about 'scorecards' and how different actions affect people at different levels of credit worthiness. It alludes to the bell curve haulingthescoreup talks about, but according to the post, a late might only hit me (don't ask, I'm so confused as to my real score, I'm seeing things, but something between 580 and 700, depending on where I look) for 20 points if recent, but you being the 'upper crust' may get nailed by 50+ points. I'm not saying it makes sense, only that it's a better explanation than I can offer...And I agree, these knuckleheads have WAY too much power over us! Should we revolt?

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=10004&view=by_date_ascending&page=2

Page 2 response 17

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My last late that I will ever have in my life occurred this March and was posted in June. Took EQ from 649 to 599, boom, like that, in one day. I think the OP is "upper echelon," but I'm sure not. It has since climbed ever-so-slowly up to 654, but a lot of that is due to my getting util to somewhere around 3%. I believe that the 50 points do start lessening a tiny bit after a month; guess they're happy to see that I wasn't going to pull that 30-60-90-120 stunt again. But even though its impact drops at 3 months, 6 months, 12 months, and 18 months, it will still take 24 months from the time it occurred to stop hurting my scores.

[Anonymous]

Absolutely!!!!!  Let's unite****

Message Edited by casinoannie97 on 10-06-2007 07:41 PM

[Anonymous]

duplicate / deleted. I hit submit by mistake sometimes. Sorry...

Message Edited by ilovepizza on 10-06-2007 08:24 PM

[Anonymous]

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@Anonymous wrote:

1. The time since your most recent account opening is very recent.
This may be due to a mortgage that we opened in April and paid off in July.
The account is now closed. This issue is being investigated by Equifax.
2. You have a relatively high number of consumer finance company accounts being reported.
Reality: Equifax shows accurately that the number of these accounts I have is zero.
3. The proportion of balances to credit limits (high credit) on your revolving/charge accounts is too hig.
Reality: The total proportion is less than 10% and the highest on one card is 33%. So it is below 50%, therefore this is not relevant.

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This might help.
1. I learned that even if you close an account it is still recent as if it were opened.

2. Consumer Finance may not be identified well on EQ. Try getting a cr directly from TU. They might list installments that are considered consumer finance better. I think EQ just has them as installments.

3. If balances are over 1% the score system will complain. You are still hit for points even with a 5% balance on over all UTL in revolving credit. Installments go by the rule of 50% I have heard but not tested.

Hope this helps.