Re: HELP! Credit scoring question! Please everyone chime in!
11-16-2012 08:28 AM
Please advise from your experience, has anyone gone from having any of these negatives, to NOT having them and saw increases to their scores?
I think what webhopper was driving at is that even though some of those are negatives as listed in the PLUS FAKO score (available through USAA), it doesn't mean your FICO would do the same. It is quite possible your EX FICO is in the 700s. It's also possible it could be in the 500s. There is zero correlation to FICO scoring. Moreover, there are more than one FAKO out there. You can pull your EX score from CreditSesame, PrivacyGuard, Experian.com, and Equifax.com and get 4 different FAKOs aside from the PLUS you referenced above, and the score ranges could easily be 100 points off from what USAA provided. In other words, if another poster came along and answered your question, it wouldn't mean that it would happen to you because there would be several scoring model comparisons.
Specifically to PLUS scoring, I have zero clue how it works. It obviously has a different score range than FICO and it factors in stuff that FICO does not, and vice-versa. For example, take #8 (CLs under $2k mention). Per FICO scoring it doesn't matter what your CLs are. But for PLUS scoring, it's obviously a ding. So, if you added new $2k+ CL CCs, your PLUS might go up because the negative is removed, but FICO would drop because it wouldn't help (mix and util aside).
Or take #7 concerning util. Per FICO scoring util is a big deal, but IME, it isn't as much for PLUS scores. I don't know what there threshold is at in terms of util, but anything over 10% for FICO can ding your score. PLUS might have that at 30% or 40%. So even if the negative goes away on USAA, FICO could still be dinging you. I have a thread in here where I paid of util from 89% down to 1% and have some FAKO comparisons in there. I can't remember if PLUS was included, but my EQ FICO increased 125 pts. My FAKOs not even half that, IIRC.
Missed payments can ding any score for the most part. Therefore removing late payments can improve the score. With regards to 2 or more CCs, that's normal for FICO too. Ideally it is 3 or more, though you can hit in the upper 700s with only one. I don't know if you can do that with a PLUS.
Hope it makes sense. I know you aren't asking about FICO scoring or whether or not your FICO score can improve with the removal of the negatives listed above. We were just pointing out that if your PLUS increases, your FICO can decrease, and vice-versa. Removing those negatives won't necessarily increase your FICO; it can decrease your FICO in some instances. And because so many EX FAKOs are out there, it'll be a challenge (but not impossible) to find others who tracked their USAA FAKO over time because lenders ignore them anyway.
Well said Ilecs.
If your goal is to make your FAKO score go up, then getting higher limit cards will do that. There is nothing wrong with that. (Just remember no lenders or credit cards will ever look at or care about that score.)
If your goal is to make your FICO score go up, you will need to use a FICO report and see what factors are affecting your FICO score. Lenders will use your FICO score, so you should try and improve things that affect that score.
What helps the FAKO may or may not help the FICO, and there is no correlation at all between the two scoring systems.
From what you have stated, the best thing you can do is focus on repairing the baddies.
Starting Score: 693 TU FICO, 679 EQ FICO
Current Score: FICO 8 = 821 EQ, 827 TU, 811 EX (7/15); mortgage FICO= 758 EQ5, 797 TU4, 748 EX2 (7/15)
Goal Score: 750+, but shooting for the 800's
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