topic Re: EQ FICO08 Dropped 42pts for adding Bank CC in Understanding FICO® Scoring

EQ FICO08 Dropped 42pts for adding Bank CC

44Rebuild2Ball — Sun, 21 Jul 2019 09:55:22 GMT

Hey all,

My Equifax FICO8 was 640 and Synchrony reported my PPMC @ 300 limit. Checked my EQ FICO now 598 (-42) with 3 inquiries showing. TU FICO8 655 and EX FICO8 571. My EX FICO2 is 657/FICO3 629. Why is my EX8 so low and why did my EQ drop 42 pats with new bank card tradeline. I have CapOne (300) reporting soon and Comenity/Toyota (2000). Will I see increases? Avg Age now

Re: EQ FICO08 Dropped 42pts for adding Bank CC

SouthJamaica — Sun, 21 Jul 2019 21:13:48 GMT

@44Rebuild2Ball wrote:
Hey all,

My Equifax FICO8 was 640 and Synchrony reported my PPMC @ 300 limit. Checked my EQ FICO now 598 (-42) with 3 inquiries showing. TU FICO8 655 and EX FICO8 571. My EX FICO2 is 657/FICO3 629. Why is my EX8 so low and why did my EQ drop 42 pats with new bank card tradeline. I have CapOne (300) reporting soon and Comenity/Toyota (2000). Will I see increases? Avg Age now

I'm afraid I can't understand your question(s).

1. What do you mean "Synchrony reported my PPMC @300 limit"

2. How would we know why your EX8 is low?

3. I seriously doubt that EQ FICO 8 dropped 42 points because a new account was reported.

4. What does it mean "I have CapOne (300) reporting soon"?

5. What does it mean "Comenity/Toyota (2000)?

6. What do you mean "Will I see increases?" Increases of what? Caused by what?

7. What does "Avg Age now" mean?

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 21 Jul 2019 23:31:25 GMT

What was the balance reported on the PPMC? If it’s high utilization you’re going to wear a penalty. And like SJ said, you got to clarify what you’re saying and give more information or we can’t even begin to answer your questions.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Mon, 22 Jul 2019 00:01:10 GMT

Not enough profile information to be able to answer any questions or offer any advice.

OP could have a 10 account file with a 60 month AAoA that drops only to 55 months AAoA with the addition of a new account. Conversely, OP could have a 2 account file with a 60 month AAoA that drops to 40 months with the addition of a new account. This is just 1 small example of how not having enough info can mean wildly different possibilities.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sat, 27 Jul 2019 19:31:29 GMT

That's odd OP, I gained +6 points for opening my PPMC.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sat, 27 Jul 2019 20:40:38 GMT

How did you come to that conclusion? This is probably another example of a misattributed conclusion as a result of those alerts that don’t correlate.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 04:14:45 GMT

@Anonymous wrote:
That's odd OP, I gained +6 points for opening my PPMC.

It's not at all likely that the statement above is correct. It's also extremely difficult to know in many cases when you open an account what exactly impacts your score (and how much) because there are multiple variables that change at that moment in time. You may end up being able to determine the net gain or loss, but knowing how much the different variables played into that net change is quite difficult.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

sarge12 — Sun, 28 Jul 2019 04:28:42 GMT

@Anonymous wrote:
How did you come to that conclusion? This is probably another example of a misattributed conclusion as a result of those alerts that don’t correlate.

I agree....I have no idea when, if ever that will not be misunderstood. An alert lets you know an alertable action has happened and pulls a current score. The new score might have changed because of the alerted action, or anything else that has shown up on your report. Bottom line....the alert and the score are not necessarily related at all. They are 2 different pieces of information. If you get an alert because of a paid tradeline, and your score has went down, it is likely due to something else, because a paid trade line usually increases your score.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 04:59:38 GMT

@Anonymous wrote:
@Anonymous wrote:
That's odd OP, I gained +6 points for opening my PPMC.
It's not at all likely that the statement above is correct. It's also extremely difficult to know in many cases when you open an account what exactly impacts your score (and how much) because there are multiple variables that change at that moment in time. You may end up being able to determine the net gain or loss, but knowing how much the different variables played into that net change is quite difficult.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 05:30:51 GMT

513credit Where did the scores come from? And why did you get two separate alerts for the same new account? Or is this covering different bureaus?

Nevertheless this far from proves your hypothesis. You did not gain any points for adding an account, at least not in the short run.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Brian_Earl_Spilner — Sun, 28 Jul 2019 06:02:14 GMT

@Anonymous wrote:
513credit Where did the scores come from? And why did you get two separate alerts for the same new account? Or is this covering different bureaus?

Nevertheless this far from proves your hypothesis. You did not gain any points for adding an account, at least not in the short run.

It says EX and TU. And I love how everyone keeps telling him it's not possible. It's 100% possible. I went through it. If someone has one $300 limit maxed out and adds a second $300 card with no balance, they get a score boost for the second card as well as the boosts for dropping utilization across multiple thresholds. Add a third card at $300 and you get another boost for the third card as well as dropping utilization even more. It's completely possible to get a score boost for adding a new account if the score gains are higher than the scoring penalties.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 06:11:20 GMT

Thank you Brian!

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 06:15:27 GMT

That screenshot showing the +6 change is obviously from Credit Karma. Since Credit Karma uses the VantageScore 3.0 and not the FICO 8 scoring model, it can safely be discounted.

The OP mentioned he obtained his "Equifax FICO" but since the source of the score wasn't disclosed there's still a question about the 42 point loss. If the OP got a score directly from Equifax it is not a FICO score.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 06:14:30 GMT

@Anonymous wrote:
That screenshot showing the +6 change is obviously from Credit Karma. Since Credit Karma uses the VantageScore 3.0 and not the FICO 8 scoring model, it can safely be discounted.

I had the same exact notification from myfico. I'm no longer a subscriber, so I can't see the previous alerts.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

sarge12 — Sun, 28 Jul 2019 07:16:56 GMT

@Anonymous wrote:
That screenshot showing the +6 change is obviously from Credit Karma. Since Credit Karma uses the VantageScore 3.0 and not the FICO 8 scoring model, it can safely be discounted.

The OP mentioned he obtained his "Equifax FICO" but since the source of the score wasn't disclosed there's still a question about the 42 point loss. If the OP got a score directly from Equifax it is not a FICO score.

+1 on the equifax. As ridiculous as it is the 1 place you can't buy an equifax fico 08 score from is equifax. You can buy it from MyFico or CCT. If you join Langley FCU, you get a true equifax fico 08 for free, updated monthly. To date, that is the only place I have found to get it free. It is beyond stupid that fico scores can't be bought from equifax

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Sun, 28 Jul 2019 11:53:53 GMT

513credit, Brian, I stand corrected. I should’ve said a new account USUALLY causes no increase or that it causes no direct increase. My language was admittedly sloppy.

Brian is right that it is possible, IF the new account causes your credit limit to increase such that utilization drops across thresholds sufficient to outweigh the inquiry ding (if applicable), the average age of accounts ding, and the ding to age of youngest accounts, (if applicable).

But you’re not getting a boost for the new account itself in the short run. If you get one, it’s due to the lowered utilization as a result of the increased aggregate credit limit outweighing the dings as Brian stated. The alert is still wrong and misattributing the gain to the new account being added when that’s not the reason for the gain. The reason for the gain would be the drop in utilization, not the new account being added directly.

In the long run, adding accounts can help you switch to a thick scorecard, but you most likely wouldn’t realize those gains until you changed scorecards 12 months later from the new account scorecard.

Also totally agree if it’s CK, the scores must be discounted. Are you telling me the point change was exactly the same for MyFICO? Or just that MF also showed a net gain?

And I also agree that it is crazy you can’t get a FICO score from Equifax. I remember one thread where a guy bought service from them and I cautioned him that they were not FICO scores, but he insisted that the service he bought did provide FICO scores from EQ. So I had been wondering if they somehow did provide it and I just didn’t know about it.

I’ve definitely got to choose my words more carefully when I’m tired, I apologize for not speaking more carefully. But the new account did not cause a point gain as the alert states. Decreased utilization would be the cause. So it still incorrect to say the new account caused it.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

FireMedic1 — Sun, 28 Jul 2019 13:29:40 GMT

@Anonymous wrote:
Thank you Brian!

This is from EQ as their FICO score. But the fine print is this at the bottom of the page: "The FICO Score is based on the FICO Score 5 model." I had it once until I realized it wasn't FICO 8 and canceled yrs ago.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Mon, 29 Jul 2019 00:28:32 GMT

@Brian_Earl_Spilner wrote:
And I love how everyone keeps telling him it's not possible. It's 100% possible. I went through it. If someone has one $300 limit maxed out and adds a second $300 card with no balance, they get a score boost for the second card as well as the boosts for dropping utilization across multiple thresholds.

Sure, anyone can come up with an example to make the numbers work to justify a claim, but no need to come up with an example when we can use the 513s numbers since it's his profile we're talking about.

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Mon, 29 Jul 2019 00:34:40 GMT

As far as I know, Equifax does not provide any FICO scores directly to the public, regardless of the FICO scoring model. Equifax uses its own scoring model called the Equifax Credit Score model to compute scores for the three bureaus.

The disclaimer on Equifax Complete Premier Plan's website is pretty clear:

Re: EQ FICO08 Dropped 42pts for adding Bank CC

Anonymous — Mon, 29 Jul 2019 07:14:10 GMT

Are you all saying there isn't a score bump from the addition of the first 3 revolvers? It was 513's 3rd revolver. It also changed his total CL's from $700 to $2700, with a balance of $224 (I believe it was), 32% to 8%. Everyone can argue where the score came from (rightly so), but it isn't unfathomable that his score would increase.