If you could, what would you change about how Fico scores? How could we get Fico to change things?

[UKTone]

Currently, your Average Age of Accounts/Open Accounts, Types of Credit, New credit, and hard inquiries all conflict with each other.

If you want to increase your types of credit, you have to take the risk of applying for another account which could be denied and so it's possible you could get a hard inquiry that "doesn't really get looked at" in 6 months (I just got denied a credit increase because of too many inquiries on report, and their 4, 3 will fall fall completely off on the 27th, and the last this January, they are all almost 2 years old), and fall off fico in 1 year - 2 years (likely 2). And then if you do get the new account or accounts, your AAoA is going to take a significant hit.

I would make AAoA not matter, have inquires hurt more, but fall off everything within a year and three days. This way people are more able to apply for multiple or one account per year without too much worry.

What would be wrong with my changes (if any)? What would you change? How could we get Fico to change things? A petition?

Should changes be made for the Vantage, Auto insurance, Home insurance, etc. scores as well? I would like all their scoring factors and percentages to be officially revealed at least.

[coterotie]

Regarding inquiries, I would do the exact opposite.

I would require inquiries to match newliy opened accounts or not count.

For example I was looking at a car.  Applied for a loan only to find out the car had been sold and I didn't like the rate on the loan.  So why should I pay the penalty for an inquiry when I didn't actually open a new account?

I was being financially responsible by only buying a car that was undervalued and turning down a loan that I didn't like.  Yet I'm penalized on my score for a year, in which time I might find another car but because of the inquiry face a higher interest rate (this actually happened to my wife a couple of years ago, because we waited 45 days between inquiries cap1 jacked her rate 2.5% because of too many inquiries, they were the only inquiry!)

Same with mortgages, the inquiry knocks down your score, which raises your interest rate.  If you don't buy the house within 30 days of deciding you want a house you pay a higher interest rate when you find one you do like.  Where is the logic in that?

On credit card inquiries, I can see a ding for those for new accounts, but much less so for credit line increases etc.

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@UKTone wrote:

Currently, your Average Age of Accounts/Open Accounts, Types of Credit, New credit, and hard inquiries all conflict with each other.

If you want to increase your types of credit, you have to take the risk of applying for another account which could be denied and so it's possible you could get a hard inquiry that "doesn't really get looked at" in 6 months (I just got denied a credit increase because of too many inquiries on report, and their 4, 3 will fall fall completely off on the 27th, and the last this January, they are all almost 2 years old), and fall off fico in 1 year - 2 years (likely 2). And then if you do get the new account or accounts, your AAoA is going to take a significant hit.

I would make AAoA not matter, have inquires hurt more, but fall off everything within a year and three days. This way people are more able to apply for multiple or one account per year without too much worry.

What would be wrong with my changes (if any)? What would you change? How could we get Fico to change things? A petition?

Should changes be made for the Vantage, Auto insurance, Home insurance, etc. scores as well? I would like all their scoring factors and percentages to be officially revealed at least.

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[UKTone]

Yeah I unfortunantly got an inquiry from a credit limit increase attempt from Commerica, but it was because I tried for a 5000 limit increase, she told me after that it had to be 1500 or less to not get a hard inquiry... now when I ask them about an increase, they say 1500 or less still could get me a hard inquiry... I was told similar for Discover, but she gave me no amount, so I tried $1500 and it was a soft hit and I was able to see my TU score (a month old) as a bonus. I was denied on both, my score was 726 Experian or 739 TU when I tried for the 5k and she said it tries for lower amounts as well. My recent one was 648, but I did it so I know if I'll get a hard hit or not, rather do it sooner than later. Commerica wants me to wait 6 months to try again, Discover says 45 days/whenever i want to (different people).

And yes, the whole applying within a week (i believe) searching for loans to have one inquiry is weird to me, especially since I've heard if you get them all accepted they all will give you a hard inquiry. I got somewhat lucky with this though. I applied for 3 or 4 credit cards on the same day, TU and EQ considered them all just one hard inquiry (3 cards got accepted), but Ex gave me 3 inquiries.

[MidnightVoice]

I don't know if FICO has taken account of this factor, but the CC market has changed.  With a ton of rewards cards out there, plus frequent free financing, I think more people are applying for more cards and not using them after the initial purpose has been satisfied.  Using me as an example, I have 4 dormant cards less than 2 years old that were used purely for 6 months (or more) free financing on major purchases.  I have 3 hotel cards that are there to give me status when I stay (even if I am not paying) and to give me extra free nights.  I have a B&N card that is only ever used to buy books at B&N.  I have one airline card.  That is 9 open cards, all less then 6 years old, and my AAoA sucks!

[Kratos-TM]

I would change AAoA scoring. Just length of history should be scored in regards to age.

[Gunnar419]

I would get rid of bucketing and score every credit user on their own merits, not judging by some mysterious group they may or may not be in.