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Of What Value the FICO Score Simulator?

Valued Member

Of What Value the FICO Score Simulator?

This is not exactly a complaint about the FICO score simulator. After all, I didn't pay anything for the simulator and it's not the reason I purchased my FICO score. Still ...

 

My FICO score is 740, which is nothing to be ashamed of. But according to the FICO score simulator, there is nothing I can do to improve my score. If I pay off all my outstanding debt today, my FICO score will not change, according to the simulator. If I do that and pay off all my credit accounts in full every month for the next 24 months I can still anticipate no change to my FICO score.

 

If I do both those things and I age my account 24 months forward, guess what? The revolving circle still stops at 740. This makes me wonder if I should place any confidence at all in the FICO score simulator.

Message 1 of 7
6 REPLIES
Valued Member

Re: Of What Value the FICO Score Simulator?

I'm just guessing at this because I'm pretty new here, but is there something on your CR that has created a ceiling? It's my understanding that if you have a baddie on your CR such as a 90 day late or a BK, that until it falls off will cause your score to be held at a certain level. 

 

I haven't used the score simulator so I don't know what options it gives you. Is it possible to remove any baddies/negatives on your account and then see if your score improves when you pay off debt, age accounts, etc? 

Message 2 of 7
Community Leader
Senior Contributor

Re: Of What Value the FICO Score Simulator?

My comments in blue below. 

 


BulldogX wrote:

This is not exactly a complaint about the FICO score simulator. After all, I didn't pay anything for the simulator and it's not the reason I purchased my FICO score. Still ...

 

My FICO score is 740, which is nothing to be ashamed of. But according to the FICO score simulator, there is nothing I can do to improve my score. If I pay off all my outstanding debt today...

 

Do you mean revolving debt only?  Or are you including installment debt as well?  What are your revolving tradelines, what is the balance and credit limit on each?  E.g.

 

Card 1.  Balance = ____    Credit Limit = ____

Card 2.  Balance = ____    Credit Limit = ____

Card 3.  Balance = ____    Credit Limit = ____

etc.

 

Paying all revolving debt to zero is fine, but only if you then use a credit card for something small immediately.  You will incur a scoring penalty if all cards report $0.

 

my FICO score will not change, according to the simulator. If I do that and pay off all my credit accounts in full every month for the next 24 months I can still anticipate no change to my FICO score.

 

While Paying in Full (PIF) is an extremely laudable habit, and one we urge people to adopt, it has no effect on your score.  What affects your score is your CC utilization.  A person can PIF every month but have a 3% utiliztion one month and a 77% another month.

 

If I do both those things and I age my account 24 months forward, guess what? The revolving circle still stops at 740. This makes me wonder if I should place any confidence at all in the FICO score simulator.

 

The simulators one obtains through pretty much any credit monitoring service are typically worthless.  A better strategy for someone wishing to improve his score is to describe his profile in detail and then get advice from the folks in the forum.


 

Message 3 of 7
Super Contributor

Re: Of What Value the FICO Score Simulator?


BulldogX wrote:

This is not exactly a complaint about the FICO score simulator. After all, I didn't pay anything for the simulator and it's not the reason I purchased my FICO score. Still ...

 

My FICO score is 740, which is nothing to be ashamed of. But according to the FICO score simulator, there is nothing I can do to improve my score. If I pay off all my outstanding debt today, my FICO score will not change, according to the simulator. If I do that and pay off all my credit accounts in full every month for the next 24 months I can still anticipate no change to my FICO score.

 

If I do both those things and I age my account 24 months forward, guess what? The revolving circle still stops at 740. This makes me wonder if I should place any confidence at all in the FICO score simulator.


No you should not place any confidence in it at all.

 

To me it's value is fun.

FICO8 EQ 721 TU 772 EX 769 Total revolving credit 500k
Message 4 of 7
Senior Contributor

Re: Of What Value the FICO Score Simulator?

Simulators are garbage.  If you do absolutely nothing your score would increase above 740 within 2 years simply based on your file aging... your AAoA would increase, your AoOA would increase, any new accounts (AoYA) or inquiries would no longer adversely impact your score, etc. 

 

If your current utilization is > 9%, you are leaving points on the table today by not having it below that number.  In this case the simulator would be 100% wrong, as if you paid down (but not to $0) your reported balances you would most certainly see a scoring increase.

 

Also, if you don't have an open installment loan and employ the SSL technique, you could scoop up around 30 points within a month or so; you're definitely not at a ceiling or anything with respect to score.

Message 5 of 7
Regular Contributor

Re: Of What Value the FICO Score Simulator?

All of the simulators seem to be directionally informative at best. Their algorithms seem to be made by folks with far less understanding of Fico’s credit scoring algorithms than this forum’s members. It’s a shame because they could be helpful.
Fico 8 Scores
10/2017: EQ - 823; TU - 835; EX - 824; Seven CCs ($125,500 CL, 0%-1% UTIL); AoOA = 15.5 years; AAoA = 60 mos.; AoYA = 18 mos.; one mortgage; one car loan; derogs from 2009 and 2010 now gone after 7 years. It's taken a few years but credit scores are now good after starting in the high 500s back in 2011
05/2016: EQ - 712; TU - 706; EX - 710
11/2015: EQ - 694; TU - 651; EX - 653
5/2015: EQ - 640; 11/2014: EQ - 653; 05/2014 EQ - 653; 11/2013: EQ - 645; 05/2013: EQ - 656;11/2012: EQ - 646;
Message 6 of 7
Senior Contributor

Re: Of What Value the FICO Score Simulator?

For a simulator to be at all accurate IMO, it would need to ask far more questions than the standard 10 or so that they ask in order to generate scoring predictions based on profile-changing events.  10 basic questions is no where near enough.

Message 7 of 7