Re: 50+ POINT DROP?? 794 to 736???
01-17-2013 06:31 AM
SW uses Beacon v5.0 aka EQ FICO Classic 04. This was developed 1998-2000 so is unchanged for well over a decade.
Again, it isn't the dollars of the change but is other factors such as number of accounts. The algorithm is designed to catagorize risk of major delinquency and it is difficult to separate "very low risk" from "even lower risk". 794 is almost to the point where it fails to improve at all. Your "goal score" can't be attained at all and there is effectively no difference between 790 and 800 and 810.
The goal of new algorithms is to quantify risk at the other end. They are trying to qualify more acceptable borrowers without increasing the unacceptable borrowers.
People will fabricate all kinds of silly theories but virtually none are based on facts.