Re: Fico Score did not improve after 7 month credit card activity[ Edited ]
10-04-2012 08:00 PM - edited 10-04-2012 08:02 PM
The FICO score is complex. Very complex. Your score is dependent on everyone else's score and everyone else is dependent on yours. FICO added scoring buckets within each FICO score. Ever have that professor in college that graded on a scale? You can be in class and get the highest score at 80%. If the professor is grading on a sliding scale, you effectively got an "A" in class with a lower grade. Same goes with FICO. If the economy tanks and everyone does bad, not everyone's score will drop accordingly.
Buckets are a good thing. Some folks are new to credit. Some have years of history. Some have a BK reporting. Some have baddies. And so on. Scoring buckets make it so that someone with a 30-yr history isn't being compared directly to someone with only a year history, or that someone with a BK and baddies isn't compared directly with someone with a spotless history. That's why you'll see some gain points when a new CC is added and some lose when a new CC is added, or someone proclaims a 70 pt drop when their last baddie fell vs. someone saying they only gained a few when their last baddie fell. They aren't scored together because their profiles are different.
There are a dozen or so buckets. What they are aren't entirely clear. You cannot be rebucketed while accounts are in dispute and we know that util does not factor into util, though score impact will vary on improved util depending on your bucket. We know there's a bucket for folks with a BK. There's a bucket for those with major baddies. There's a bucket for short and new histories, and conversely for uber-long credit histories. The rest is speculation. You can only be in one bucket at a time. For example, if you have major baddies, you cannot be rebucketed until the last baddie drops.
So, in your case, if length of history isn't "Great", and is on the negative side, it means, on average, more people have a longer history than you do. With time that'll improve. Within the pos/neg scoring reasons, it ranks them in order from very worst to not as bad on the neg. side, and very great to not as great on the pos side. If the pos/neg reasons moved around overnight it likely means you were rebucketed which sets you up for a higher score down the road, as compared to not being in the new bucket you are in now.
ETA...I'll admit I don't memorize every single post either. This thread is long to re-read each time. It's easy for poster like Jaime and myself to forget the details. But the above is a synopsis and hope it helps.