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I DON'T CARE FICO!!!!!!!!

Frequent Contributor

I DON'T CARE FICO!!!!!!!!

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!Smiley LOL

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10 REPLIES
Frequent Contributor

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

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.

 

Epic Contributor

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

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 Emeritus

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
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Epic Contributor

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

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. 

Community Leader
Epic Contributor

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.

 

Established Contributor

Re: I DON'T CARE FICO!!!!!!!!

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. Smiley Happy