What Happened?

[Anonymous]

I checked my EQ scores last week. A $470 payment caused a jump of 19 points (from 597 to 616). I then checked my score a couple of days ago, and payments totaling $767 only caused a 1 point increase. Nothing else on my report changed. The only difference in the two reports was the first one showed that one of the factors positively affecting my score was the fact that I have paid all of my bills on time for the past 3 years and 4 months. The new report says the only positive factor is low credit usage (31% of available).

As I said before, nothing else on the report changed. No new late pays, collections or anything negative. What happened? Why isn't my recent history of paying my bills on time a factor anymore? I was hoping to see a jump of at least 10-20 points. My TU & EX scores jumped 26 points (TU from 601-627) and 110 points (EX from 542-652).

Anybody know why this happened with EQ?

[Anonymous]

Hi mom, and welcome to the forum.

One of the least understood phenomenon items of FICO scoring is a change of scoring categories, that we call 'buckets'. You could have changed categories, which could account for an inexplicable change in scoring patterns. I'm not saying that this DID happen, but only saying it's one possibility.

Congrats on getting your utilizations down(the ratio of outstanding debt and total credit limit).

You brought your utils down, which resulted in a score increase. Reducing your utils even further will result in more score rises, with the optimum utilization at 1%-9% for maximum scoring benefit.

Other than changing 'buckets', something unrelated to utils could have happened. Age of accounts, etc.

[Anonymous]

Thanks for the info. I have heard about the buckets, but I still don't understand exactly how they work. I was also a little surprised when I had a collection removed last month (wasn't my account) and it didn't change my score at all.

I'm working on getting my util down to 6-7%. I'm hoping to have it there by the end of April. Does the balance on my installment loans count as well? I have a mortgage and auto loan. Both are current but both have ratios over 90%.

[Anonymous]

Yes ryansmom they DO count but not NEAR as much as your revolving credit does. As installment loans are constant and level, concentrate on the cc's to help your scores.

[tonsers]

Another explanation could have to do with your total utilization. There seem to be point jumps when you move below 50%, 40%, 30% etc. Maybe your first payment put you past one of these numbers - and the second, larger payment did not. (For example - first payment took UTI from 33% to 29% - second payment 29% to 21%).