I am convinced the FICO algorithm is fixed..

[Anonymous]

If FICO will have some calculations that, for example, "ignore" or reduce the impact of such bad account after certain time period (2 years), then it will be better.

It does.  FICO is HEAVILY weighted toward the past 24 months.  In fact, the entire FICO model is built on the premise that the LAST two years are the BEST predictor of the next two years.

[marty56]

---

@Anonymous wrote:

If FICO will have some calculations that, for example, "ignore" or reduce the impact of such bad account after certain time period (2 years), then it will be better.

It does.  FICO is HEAVILY weighted toward the past 24 months.  In fact, the entire FICO model is built on the premise that the LAST two years are the BEST predictor of the next two years.

---

Not really.  Anyone with a major derog knows it hurts for the full 7 years.

[ficofox]

---

@marty56 wrote:

---

---

Not really.  Anyone with a major derog knows it hurts for the full 7 years.

---

That's pretty much true, however, what started out as a sharp pain becomes a dull ache the more the derog ages. (Some) potential lenders can be more forgiving about derogs the closer they get to dropping off.

[mauve]

It's definitely weighted for the two years.  However, I just got a 49 point score jump based on 2 factors (unless I missed something): my oldest account went from 8 years 11 months to 9 years and I had an old cc account go from being closed with a 30, 60, and 90 day late to being in good standing.  Those hurt right to the end. 

[crawdiddly]

I completely agree. FICO is driving me nuts in trying to determine  how to manage my score. Every action with FICO seems to result in an opposite, and not so equal reaction. It seems that when I do something that I'm sure will improve my score it ends up with the opposite effect. I am 60 years old and have had credit since I was  18, but my score says my credit history is not long enough???? Seven years seems to be their magic number. However, If items are dropped from my score after seven years how can the data ever be long enough. I used to think that I was fairly well educated until I met Mr. Fico, Then I found out just how stupid I am as I can't figure this thing out.  :

[Anonymous]

I find this post a little amusing. You brag about making six figures which is alot of money to most people . Yet like most rich people who waste their money and live beyond their means you lease cars or finance cars instead of having the money available to buy a car which is the smartest thing todo financialy. You have a medical bk dont you have insurance with your six figure salary? As far as credit card debt never had one because if you dont live beyon your means you should be able to pay off your credit card each month. Stop whining and budget and spend within your means and dont brag about making a six figure salary while most people dont and these are the people that live within their means because they have to

[Anonymous]

Well, I think that's a silly statement for you to make, Moderator.  Not paying your debts is illegal, quite obviously.  That's why creditors can/do/will bring suit upon debtors for nonpayment.  So, actually yes, both of you did something illegal which forced you into a situation of bankruptcy.  You took services and or goods but did not pay for them (as many of us do/have).

Obviously, like some of us, maxedout believes bankruptcy is in a way morally illegal, and therefore feels shame because his ethics are challenged in such a situation.  He was unable to meet his financial obligations and cannot afford to pay his medical bills.  Yet, he had already received services and was not paying for them, which leads to bankruptcy, and a bit of guilt.  Some of us find it shameful and morally wrong to get something but not pay for it.

In maxedout's case, I find it less ethically shameful to file a bankruptcy on medical bills than I do for a store credit card or something similar.  Medical costs are rediculously inflated and it's not possible to avoid those costs when your health is at stake.  But, people who file thousands of dollars of bankruptcy on store credit cards, etc. should feel ashamed because their selfishness for unnecessary goods puts our economy as a whole further into debt.

I think congratulating people who have overcome bankruptcy or even managed to avoid it is a much more responsible way to respond to someone's statement of ethically charged feelings about a bankruptcy, rather than saying you did nothing illegal (which is untrue), and insinuating that you have no responsibility in such a situation.

[nokturnal]

---

@Anonymous wrote:

I find this post a little amusing. You brag about making six figures which is alot of money to most people . Yet like most rich people who waste their money and live beyond their means you lease cars or finance cars instead of having the money available to buy a car which is the smartest thing todo financialy. You have a medical bk dont you have insurance with your six figure salary? As far as credit card debt never had one because if you dont live beyon your means you should be able to pay off your credit card each month. Stop whining and budget and spend within your means and dont brag about making a six figure salary while most people dont and these are the people that live within their means because they have to

---

How was this person bragging?  They were simply giving facts in the hopes that someone could help them figure out the 'Wizard of Oz' method that FICO uses to determine when it will ding your score or grant you with a bounce.  You should stop being bitter simply because someone is making a 6 figure income.  You could have easily made the point of people needing to live within their means without mentioning income.  Moreover, you implied that people making less than 6 figure incomes are the ones that live within their means because 'they have to'.  They might have to now, but where have you been the last 3-4 years?  There were plenty of people in 2006-2007 buying $450k+ houses on $70k incomes, and now a large portion of those are in foreclosure.  Is that living within their means?

Now that that's out of the way, I think the FICO algorithm is a joke.  I too make a 6 figure income, have NO debt, and yes UE, I mean NO debt (that would be living within my means I suppose?)  I have been debt free for 2+ yrs.  Before that, I had paid off 4-5 car loans, a mortgage, student loans, etc.  I have an execellent credit history with most accounts over 15 yrs old, and I have had not ONE missed payment, late payment, or anything else that could be considered as negative.  My FICO score is probably considered excellent, but that's not the point of this thread... the point is there is no LOGICAL reason for the way it jumps around.  I have several CCs that I use for various reasons.  One is a main CC that is used for all spending throughout the month, the second is used for online purchases only, and the third is used for recurring charges (gym fees, netflix, etc).  All of these are paid off monthly, so there is never a balance.  Last Summer, I put a large purchase on the main card, and of course paid it off.  The next month I purchased something off the net for $13.76.  Subsequently, my score dropped 8 points.  I thought the drop might be because of the large purchase the month before, but that was paid off immediately, and it took until this past Jan for the points to come back.  However, right after that bounce (which wasn't a full recovery), it dropped by a smaller amount for some unknown reason.  Now I'm sure someone on here could explain that to me, but honestly, that's just plain stupid.  Someone with NO debt, making $150k+, who's spending habits are as consistent as mine shouldn't have to see their score bounce around like a ping pong ball.  Their calculation method, whatever it is, reminds me of oil companies and gas prices.  The oil companies buy oil at a given price, refine it and put the gas out to be sold.  Something happens that causes the price of oil to spike, and all of a sudden, we're paying more for gas... that they bought when oil was cheaper.  Of course when the price of oil finally drop, it takes 4 times as long for the gas prices to fall as it did for them to rise.  Makes no sense to me, but I guess that's why I'm not in the oil business... or credit score cacluating.

Like I said, I find the whole thing a joke.  I don't plan on needing my score for anything in the near future (since I don't plan on buying another house anytime soon), so for now, I simply find it amusing to watch how an almost constant state of credit can be assigned so many differing values.  For all of those who really need the score, good luck.

[MarineVietVet]

Lively debate and different opinions are welcomed and encouraged but at the same time we need to remember to keep everything friendly, supportive, and respectful.

Agreeing to disagree is fine but don't be disagreeable about it. 

[Walt_K]

---

nokturnal wrote:

My FICO score is probably considered excellent, but that's not the point of this thread... the point is there is no LOGICAL reason for the way it jumps around.  I have several CCs that I use for various reasons.  One is a main CC that is used for all spending throughout the month, the second is used for online purchases only, and the third is used for recurring charges (gym fees, netflix, etc).  All of these are paid off monthly, so there is never a balance.  Last Summer, I put a large purchase on the main card, and of course paid it off.  The next month I purchased something off the net for $13.76.  Subsequently, my score dropped 8 points.  I thought the drop might be because of the large purchase the month before, but that was paid off immediately, and it took until this past Jan for the points to come back.  However, right after that bounce (which wasn't a full recovery), it dropped by a smaller amount for some unknown reason.  Now I'm sure someone on here could explain that to me, but honestly, that's just plain stupid.  Someone with NO debt, making $150k+, who's spending habits are as consistent as mine shouldn't have to see their score bounce around like a ping pong ball.  Their calculation method, whatever it is, reminds me of oil companies and gas prices.  The oil companies buy oil at a given price, refine it and put the gas out to be sold.  Something happens that causes the price of oil to spike, and all of a sudden, we're paying more for gas... that they bought when oil was cheaper.  Of course when the price of oil finally drop, it takes 4 times as long for the gas prices to fall as it did for them to rise.  Makes no sense to me, but I guess that's why I'm not in the oil business... or credit score cacluating.

Like I said, I find the whole thing a joke.  I don't plan on needing my score for anything in the near future (since I don't plan on buying another house anytime soon), so for now, I simply find it amusing to watch how an almost constant state of credit can be assigned so many differing values.  For all of those who really need the score, good luck.

---

What did your score drop from?  If your score is bouncing around from something like 815 to 807, it really isn't evidence that the model is broken.  It's still scoring you in the 800s.   A couple points here and there don't matter as with any score that high, you're getting the best rates. 

As for other comments suggesting that negatives shouldn't stay on credit reports for so long, I have to say that I would also like it if I could get my negatives removed sooner.  But on the flip side, there are people that I have loaned money to over ten years ago who never paid me back.  And if they ever ask me for money again, I sure as hell wouldn't consider it until they paid me back.