Re: Starting to question Myfico
03-03-2013 08:40 PM
let me chime in here for a second:
1. You are paying down balances thereby lowering util- 30% is better than 70% to be certain. However 30% is still considered "heavy" usage. FICO won't lower your score as much for 30 percent as it will for 70% but if you take those balances down to below 9% you will enter an area of util that FICO likes a lot.
2. Losing a 6.5 year old account from your AAoA when your next oldest is 5 months, will drastically change your score. 6.5 years is not long by FICO standards to start with. 18 years is long. 5 months is a newborn to FICO.
3. The windows for AAoA are 6 months, 18 months, 2 years 6 months, 3 years and 1 month and upward in chunks from there. Right now you have AAoA of 5 months. Down from probably 4 years would be my guess. (Remember its Average age of accounts)
The key here is don't get disenchanted thinking its MyFICO. You can pull other scores from other monitoring businesses but they are not FICO scores. Essentially most of those places will try to tell you what you want to hear instead of what the real picture is.
My score on Credit Karma this morning was 735. I still have three cards which need to report and all of them were at 90% util before I paid them off last week. When they report, my score will increase to be sure because I paid them all the way off and will only have a balance of less than 5% reporting on just one of my cards. The rest are paid to 0. So I know that my score on Credit Karma is bogus.
I ran the MyFICO simulator earlier today and subtracted the balances which will report in a couple weeks from my current balance total and it told me that my score will jump to 749-799. I call BS on that because I know that my AAoA is not going to be enough to push me that close to 800. Its nice to look at that number but its not one I will see just yet.
Don't get discouraged. You are on the right track and BELIEVE me a mid range 600 score with NO baddies is better than a low range 700 with baddies.
I hope this helps and I don't mean to sound harsh if it does come off that way. FICO scores can make us all pull our hair out, but you are doing good by paying down those balances. Before long you will see the rewards in a more tangible and intense manner.
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