Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
Re: Trying to understand Fico scoring

Hmmm, OK, last desperate gasp:


You might be hurt by having such a "thin file," meaning that you have very few accounts reporting, so although your credit track record is long, the problem accounts carry more impact. Thin file + serious derogs (the 60-day) might be an especially lethal combo. But that's just a guess. You're very unusual in the combination of long history and few accounts, so we don't have much anecdotal evidence (polite term for "what people have claimed here on the forums," lol) for this.


I know that when I was in a similar situation (19 years longest history, a 60-90 day late, multiple accounts with lates), my scores stayed fairly stuck until I opened a half-dozen new accounts. I took a beating for lowered AAoA, but eventually my scores started moving upward. One term for this is "diluting" older bad credit with good. I still have the same number of account with lates, but they're a much smaller proportion of my total accounts than they used to be.


In general, it would probably help to have a third open revolving account (CC, line of credit), because successful management of revovlving credit is rewarded by the scoring formula (because you can get into so much trouble with it, alas), but I would certainly never advise opening new credit just to attempt to please the FICO scoring gods.


btw, I typed and deleted a bunch of other theories about how you might have been assigned to a new score card (score bucket, "rebucketing"), but then I kept remembering that you're stuck in a negative score bucket as long as the 60-day late is on there. But I was able to get into the 740's - 750's with a 60-90, so it's not simply from being in the negative score bucket.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007