03-22-2011 12:44 PM
03-22-2011 01:23 PM
Paying a balance on a revolving account down to reporting a zero balance can have a significant FICO score impact.
Reducing the number of accounts which are reporting a balance can also have a FICO score impact.
Closing an account is another story altogether. Read fused's Closing Credit Cards for some helpful info.
How many revolving accounts do you currently have open (with and/or without a reported balance)?
03-29-2011 08:45 AM
03-29-2011 08:58 AM
I have 6 revoving accounts and 2 auto loans. I just closed my cap 1 and my walmart card. Both have a 0 balance. I did have one late on the cap 1 3 years ago and noticed that the little red flag that shows what's hurting your score is no longer there since the account has been closed. Maybe that's why I got the 45 point increase? I'm not sure but I would think it still counts as a negative even if the account is closed.
Sounds like an aspect of that TL changed, in your favor, causing an increase. I don't think you get red-flagged for anything but a negative comment, a late, negative comment, etc. Changed in util may have helped too, but that wouldn't be the cause of the red flag. I'd look in your before and after reports to see what changed in your CapOne.
03-29-2011 09:14 AM
03-29-2011 09:59 AM
I apoligize for the thread- jack.
If the OP is not subject to FICO Scoring Reason code #4, when would this reason code apply in
03-29-2011 10:40 AM - edited 03-29-2011 11:00 AM
What is fico score reason code #4?
Fico score reason codes can be found on this board. Just look above the section where the latest post appears.
Here's the link---->http://www.royalmortgagecredit.com/credit_report.h
The link was originally added by haulingthescoreup.------------->http://ficoforums.myfico.com/t5/Understanding-FICO
ETA: added hauling's link.
03-29-2011 10:53 AM - edited 03-29-2011 11:01 AM
Another forums poster was hit with Reason Code #4 with 6 open revolving accounts - but this was awhile back:
(And of course, you have to look at how many of the six revolving accounts are actually bank or national revolving accounts - which is what Reason Code #4 is counting).
We actually do watch this one as we groom our reports (that's easy for us cuz we're rebuilders and we just don't want a lot of revolving accounts anyway) - but others would not be concerned about this at all.
I'm going to guess it's a very very small FICO hit, and one that not many folks would worry about.
But, to play the devil's advocate, I guess Citi did care about it - at least at the time of the post linked above. We just don't see this one referenced that often. I'm going to guess that's because it's fairly low on the list of reason codes for many folks and doesn't show up until lots of other - more FICO damaging - reason codes are no longer impacting one's credit report.
Hopefully other folks who have seen this on their CR's will chime in.
03-29-2011 09:26 PM
Im replying to all that has been discussed so far.
FICO reason Code 4 cannot be related to the OP's question. If you look at the link reason code 4 is not returned by TU in the Empirica 98 score. What will account for the score change is the account being in dispute. While an account is in dispute for the most part it will remian neutral in the FICO score calculation. Once the account is no longer in dispute then the effect of that account will be fully reflected in the score. I would add this most lenders will not fund a loan with account(s) in dispute. The disputed account may not be the full reason for the change in the FICO score there could be other factors as well.