Slow Balance Updates Killing FICO Score?

[Anonymous]

Hello,

I have a question about how FICO scoring works with credit utilization/balances. I am new to credit, being only 23 years old and my credit history only goes back 7 months total. I have a bank of america credit card with a $10,000 limit, and just recently (within last 30 days) got approved for a capital one card. So I've been slowly trying to get myself established with a few active accounts.

I signed up for the ScoreWatch trial here on myfico to check the service out and have a general idea what my score would be as I had no idea what a 7 month history of ontime payments would net. The concern however, is it appears ScoreWatch is showing my credit util at $8,900 out of $10,000. While at one point in time I did have charges around that figure due to some emergency medical bills, I paid the $8,900 in full when it was due back in february. Is this normal for Equifax to be reporting such old credit balances from Bank of America? If so, how long should it take for this to get flushed out? If this is not normal what can I do to correct the matter? Also the capital one card I was approved for 30 days ago isn't even listed on the ScoreWatch report, and I've already gotten and paid my first statement. I was just under the impression that monthly updates of balances should occur. Is it a problem with Equifax, Scorewatch, Bank of America, or? I'm tempted to go buy a Transunion score and report but I dont want to waste my money on old information. This old info is cutting my score down to 590 when it should be comfortably 625-650 with a low balance reporting. Credit report is flawless aside from the old high balance. Credit report from March 2009 from annualcreditreport.com lists the $8900 highest ever balance BUT reflected the proper Current Balance of $500~ Why is the balance correct on credit report from march but scorewatch isnt even close? Any suggestions?

One last question, On the credit report there is a field marked "High Credit" which I presume means the highest balance ever carried on the line. Does this in any way shape or form  have any impact on a FICO score calculation or is it just for reference and history? 

Thank you for taking the time to read and help me!

[haulingthescoreup]

Hi, welcome to the forums!

So the Equifax report that you pulled here via ScoreWatch shows that $8,900 as the current balance?

OK, myFICO wouldn't be the villain, as it repeats the info on the underlying full credit report. And the score is calculated off that same full report, maintained by each credit bureau, not off of the myFICO version.

So the problem is either that Bank of America hasn't updated the new balance, or Equifax hasn't updated your report.

You probably need to go ahead and pull (and pay for) a full report directly from Equifax to see what it looks like there. If you haven't pulled your annual freebie within the last 12 months, go to annualcreitreport.com and follow the directions for an EQ pull.

If you've already used your freebie, you'll need to go to the EQ site. I'm trying to find a link for the full report without a FICO score, but I can't find one. There might be a link through the annualcreditreport-dot-com site; otherwise, here's this one for $15.95, which includes your EQ FICO: EQ full credit report + EQ FICO score

I would also check my Bank of America statements online for the past several months and note when the balance was reduced and by how much each time. Then call Bank of America, and ask them to check (not just reassure you) when the last time was that they updated your account. Verify the spelling of your name, your exact address, SSN, etc --maybe they're sending the info, but part of your demographic data is corrupted, so it's not getting posted to your EQ report.


eta: sorry --the highest balance field doesn't affect your score at all. As for lenders reaction, I have a highest balance that's higher than the current CL on that particular card, because I reallocated CL's with another card from the same lender. No one has ever mentioned it.

Message Edited by haulingthescoreup on 05-09-2009 06:50 AM

[Anonymous]

Yes according to ScoreWatch here on Myfico.com it's reporting current balance $8,900 and Util at 90% hence slamming the score.

The $8,900 was paid aprox 02/15/2009 and an balance of + or - $500 has shown on statements from 03/2009 to present.

I pulled all 3 freebie reports from annualcreditreport.com on 03/27/2009 and the current balances appear as they should with up to date reporting. So for some reason outdated info is being relayed through ScoreWatch for unknown reasons. Old balances, not reflecting recently opened accounts 30 days ago etc. 

I will probably sign up for a 3 bureau monitoring service from either truecredit or credit check total just so I have easy monthly access to reports for review, but as of 03/2009 the reports looked good. It really throws me for a loop why ScoreWatch has info from early this year stuck in it. I will pull a new score from ScoreWatch towards the end of the month when the trial comes to a close and decide whether or not I want to continue to subscribe to it I guess.

[smallfry]

There is a link to a full report if you have a confirmation number from a previous EQ. Not sure if the mods want it posted here though.