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Frequent Contributor
Posts: 405
Registered: ‎07-31-2010
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I DON'T CARE FICO!!!!!!!!

[ Edited ]

The most upsetting thing about FICO scoring is that you actually lose points for not carrying a small balance. That's the stupidest thing I've ever heard! If staying out of debt means losing 7 points (which I did today) so be it!:smileylol:

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Frequent Contributor
Posts: 471
Registered: ‎03-29-2011
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Re: I DON'T CARE FICO!!!!!!!!

You don't lose points for not carrying a balance, you lose points for not using your card.

 

To maximize your FICO score you need to let at least one credit card report a balance on the statement date. You can pay the balance as soon as the statement cuts and still maximize your score.

 

People with who don't use credit cards are statistically not as credit worthy as those who use credit cards responsibly. FICO is just reflecting this in the scoring. 

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Valued Contributor
Posts: 1,395
Registered: ‎01-23-2013
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Re: I DON'T CARE FICO!!!!!!!!

It really is insane (even though I understand the reasoning) that people who get out of debt are punished, rather than rewarded, in this system that so heavily influences our lives.

 

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Posts: 22,406
Registered: ‎01-17-2008
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Re: I DON'T CARE FICO!!!!!!!!


OhioCPA wrote:

You don't lose points for not carrying a balance, you lose points for not using your card.

 

To maximize your FICO score you need to let at least one credit card report a balance on the statement date. You can pay the balance as soon as the statement cuts and still maximize your score.

 

People with who don't use credit cards are statistically not as credit worthy as those who use credit cards responsibly. FICO is just reflecting this in the scoring. 


I have to disagree with this statement.  There are many consumers that reach 800+ scores without the use of CC or even have one.

Frequent Contributor
Posts: 471
Registered: ‎03-29-2011
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Re: I DON'T CARE FICO!!!!!!!!


guiness56 wrote:
I have to disagree with this statement.  There are many consumers that reach 800+ scores without the use of CC or even have one.

I don’t see where your statement disproves my statement. There are several anecdotal reports of drops in FICO scores with zero credit cards reporting. Whether that is a drop from 720 to 710 or 830 to 825, it is still a drop in score.

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Moderator
Posts: 12,952
Registered: ‎04-15-2011
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Re: I DON'T CARE FICO!!!!!!!!

I took a 9 point drop this morning from EQ due to $0 CC balances.  I'd had a $183 showing on my Walmart GE card last month, but paid it off and didn't let anything else post.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Moderator
Posts: 22,406
Registered: ‎01-17-2008
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Re: I DON'T CARE FICO!!!!!!!!


OhioCPA wrote:

guiness56 wrote:
I have to disagree with this statement.  There are many consumers that reach 800+ scores without the use of CC or even have one.

I don’t see where your statement disproves my statement. There are several anecdotal reports of drops in FICO scores with zero credit cards reporting. Whether that is a drop from 720 to 710 or 830 to 825, it is still a drop in score.


The part about not being as credit worthy was my point, not the drops in score.  And I didn't say I was trying to disprove you, I simply said I disagreed.  My option of opinion.

Established Contributor
Posts: 936
Registered: ‎07-24-2012
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Re: I DON'T CARE FICO!!!!!!!!


Shogun wrote:

I took a 9 point drop this morning from EQ due to $0 CC balances.  I'd had a $183 showing on my Walmart GE card last month, but paid it off and didn't let anything else post.


Yep, I got a 5 point bump for letting $180 show on a card before paying it off AFTER the statement posted. Pretty simple concept. 

Mega Contributor
Posts: 19,115
Registered: ‎03-19-2007
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Re: I DON'T CARE FICO!!!!!!!!

FICO is not a measure of overall consumer credit-worthiness.  It is a measure of risk of becoming delinquent on repayment of debt in the near future.

 

Without a showing of debt and its repayment, it cant do its thing.

 

Frequent Contributor
Posts: 467
Registered: ‎02-10-2013
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Re: I DON'T CARE FICO!!!!!!!!

[ Edited ]

FWIW, the "balance" reported differs.

 

My CU reports my outstanding balance 14 days after the statement cut date. It has 0 to do with the actual balance at the cut, or what I paid.

 

It's easy to play with the util % because of this without actually ever revolving a balance. :smileyhappy:

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