Understanding FICO® Scoring

[hube01]

Once a credit card company reports changes, such as paying off credit cards to the three credit bureaus, how long does it take to show up on my report? Specifically, last month I paid 95% of my credit card debt. I called Discover and they told me that they report on the 11th of each month. Today is the 11th, and I am wondering once they report the change in my balance, if my crediit ccore recalulated within munutes or is there a lag? 

Any help with this would be great! 

[pizzadude]

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hube01 wrote:

Once a credit card company reports changes, such as paying off credit cards to the three credit bureaus, how long does it take to show up on my report? Specifically, last month I paid 95% of my credit card debt. I called Discover and they told me that they report on the 11th of each month. Today is the 11th, and I am wondering once they report the change in my balance, if my crediit ccore recalulated within munutes or is there a lag? 

Any help with this would be great! 

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Most Creditors report to the CRAs on your statement date, and typically it takes a day or two for them to process the updates.     So I'd give it a few more days.

As soon as the new balance is reported your FICO score will reflect the lower utilization.

[hube01]

Thanks!  I'll wiat another day or so. I do have credit alert and hopfully that kickes in.  

On another issue, I have found that myFico is also about 8-10 points lower then the actual score. I know this because about a year ago I needed my score to reach a set number. When it did, I called my credit union and then pulled a report about an hour later. They told me I was much higher then I origionally told them. 

Your thoughts? 

[pizzadude]

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hube01 wrote:

Thanks!  I'll wiat another day or so. I do have credit alert and hopfully that kickes in.  

On another issue, I have found that myFico is also about 8-10 points lower then the actual score. I know this because about a year ago I needed my score to reach a set number. When it did, I called my credit union and then pulled a report about an hour later. They told me I was much higher then I origionally told them. 

Your thoughts? 

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You would need to find out which CRA and FICO score model is being used.   MyFICO sells the TU98 and EQ04 score models, unless your CU is using the exact model then there will be differences.

[hube01]

I never knew that..??  Is there a common factor with the different models? SPecifically, if the TU98  and EQ04 shows a 700 and the exact model is a 710, is there alwas a 10 point difference? 

[pizzadude]

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hube01 wrote:

I never knew that..??  Is there a common factor with the different models? SPecifically, if the TU98  and EQ04 shows a 700 and the exact model is a 710, is there alwas a 10 point difference? 

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No, you can't assume that a current difference between different FICO scores will be constant.   It will likely change over time, and could go up or down.

[hube01]

Thank you!