topic Re: What goes into "seeking credit" reason code? in Understanding FICO® Scoring

What goes into "seeking credit" reason code?

SouthJamaica — Tue, 20 Oct 2020 15:41:30 GMT

I had a mysterious 7 point gain in EX FICO 8 today. Ran over today's report and yesterday's with a fine tooth comb, and the only clue I could find was that in FICO 8 the negative reason code "seeking credit" had dropped out. But my age of newest account, hadn't changed, and nothing seemed noteworthy in my inquiries, most recent being just 35 days ago.

So I'm wondering what goes into "seeking credit" and what could have caused it to have dropped off.

Re: What goes into "seeking credit" reason code?

Anonymous — Tue, 20 Oct 2020 16:15:29 GMT

Was that reason code last in the list / what was it replaced with?

Seeking credit to me points to inquiries not accounts, as inquiries can be acquired for reasons other than new accounts and there are other reason codes that deal with new accounts specifically.

I wonder if there are other thresholds when it comes to inquiries outside of just becoming unscoreable at 365 days, some variant related to perhaps number of inquiries within a finer time frame. Certainly with your most recent being just over a month old it's obviously still scoreable. Did you have any others become unscoreable?

Re: What goes into "seeking credit" reason code?

SouthJamaica — Tue, 20 Oct 2020 17:03:22 GMT

@Anonymous wrote:
Was that reason code last in the list / what was it replaced with?

Seeking credit to me points to inquiries not accounts, as inquiries can be acquired for reasons other than new accounts and there are other reason codes that deal with new accounts specifically.

I wonder if there are other thresholds when it comes to inquiries outside of just becoming unscoreable at 365 days, some variant related to perhaps number of inquiries within a finer time frame. Certainly with your most recent being just over a month old it's obviously still scoreable. Did you have any others become unscoreable?

It was last in the list.

It wasn't replaced by anything; the number of negative reason codes went from 4 to 3.

There was no difference in scorable inquiries.

But your point about the possibility of there being a threshold in number of recent inquiries is interesting. I will look at the inquiries with a view towards spotting something along that line. [Update: found nothing along that line]

Re: What goes into "seeking credit" reason code?

SouthJamaica — Tue, 20 Oct 2020 16:45:41 GMT

Oh wait a minute. I just detected another change which might be giving me a totally different clue.

The addition of a positive reason code: "Substantial Installment Loan Repayment"

It says I've paid off 74% of my non-mortgage installment loans. The actual reported installment utilization is 25.769%. So maybe 25% is some kind of installment loan threshold in FICO 8.

Interestingly, although that reason code was added, there is zero difference between the numbers from yesterday and those reported today.

Re: What goes into "seeking credit" reason code?

Anonymous — Tue, 20 Oct 2020 19:21:56 GMT

So you're only "credit seeking" when UT is high? lol

Re: What goes into "seeking credit" reason code?

Anonymous — Tue, 20 Oct 2020 19:54:14 GMT

@SouthJamaica wrote:

The addition of a positive reason code: "Substantial Installment Loan Repayment"

Do you have a negative reason code associated with that positive one? As we know, positive reason codes do not impact score. I was thinking you may have had one that said ratio of balances to loans is too high that could have gone away or shifted.

Do you get your codes from MF? I think it's odd that you went from 4 to 3 negative codes visible when there's still "room" for a 4th and I would imagine there's at least 1 more item holding your scores back that could have been included. Even with top notch scores there are usually several negative reason codes at play.

Re: What goes into "seeking credit" reason code?

SouthJamaica — Tue, 20 Oct 2020 20:01:36 GMT

@Anonymous wrote:
@SouthJamaica wrote:

The addition of a positive reason code: "Substantial Installment Loan Repayment"

Do you have a negative reason code associated with that positive one? As we know, positive reason codes do not impact score. I was thinking you may have had one that said ratio of balances to loans is too high that could have gone away or shifted.

Do you get your codes from MF? I think it's odd that you went from 4 to 3 negative codes visible when there's still "room" for a 4th and I would imagine there's at least 1 more item holding your scores back that could have been included. Even with top notch scores there are usually several negative reason codes at play.

I'm getting these reason codes from experian.com. That's the only place I can monitor things on a daily basis.

The only change in negative reason codes was the removal of "seeking credit".

Agreed that there are plenty of things holding my scores back at the moment; my scores are presently anything but "top notch".

Re: What goes into "seeking credit" reason code?

Anonymous — Tue, 20 Oct 2020 20:10:27 GMT

Yeah that's what leads me to believe there's something "wrong" with the codes (or lack of) provided. Have you gone through other periods where you've been provided with less than 4 by them?

Re: What goes into "seeking credit" reason code?

SouthJamaica — Tue, 20 Oct 2020 20:16:31 GMT

@Anonymous wrote:
Yeah that's what leads me to believe there's something "wrong" with the codes (or lack of) provided. Have you gone through other periods where you've been provided with less than 4 by them?

I haven't noticed experian.com sticking with 4 reason codes at all.

Re: What goes into "seeking credit" reason code?

Anonymous — Tue, 20 Oct 2020 21:06:51 GMT

It sounds to me then that they're consistently inconsistent.

Re: What goes into "seeking credit" reason code?

SouthJamaica — Wed, 21 Oct 2020 00:23:06 GMT

@Anonymous wrote:
It sounds to me then that they're consistently inconsistent.

As far as the number of reason codes goes, yes.

Re: What goes into "seeking credit" reason code?

AndySoCal — Wed, 21 Oct 2020 01:28:02 GMT

Inquires represent the pursuit of new credit or "seeking credit". The sucessful pursuit is the new account.

The basic thought by lender is that the consumer only applies for the credit that they need and not want.

Here is a link to an article to an article related to "seeking credit".

https://www.myfico.com/credit-education/credit-reports/credit-checks-and-inquiries

Re: What goes into "seeking credit" reason code?

Anonymous — Wed, 21 Oct 2020 02:41:10 GMT

@SouthJamaica wrote:
As far as the number of reason codes goes, yes.

That just doesn't sit well with me. I mean, you know the negative codes that should be there and what is adversely impacting your score, yet the CMS picks and chooses when or when to not display them. That then renders the appearance or disappearance of reason codes as non-concrete in terms of score changes, sort of false positives if you will. I would find that frustrating.

Re: What goes into "seeking credit" reason code?

Anonymous — Wed, 21 Oct 2020 05:30:01 GMT

Which version of Experian what is this on? And how many scoreable inquiries do you have at Experian?

Re: What goes into "seeking credit" reason code?

SouthJamaica — Wed, 21 Oct 2020 21:36:10 GMT

@Anonymous wrote:
Which version of Experian what is this on? And how many scoreable inquiries do you have at Experian?

I'm guessing that your questions are directed to me.

If so, the answers are:

(a) Identity Works Plus, and

(b) only 22

Re: What goes into "seeking credit" reason code?

Anonymous — Wed, 21 Oct 2020 22:08:00 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Which version of Experian what is this on? And how many scoreable inquiries do you have at Experian?
I'm guessing that your questions are directed to me.

If so, the answers are:

(a) Identity Works Plus, and

(b) only 22

@SouthJamaica Yes, indeed, my friend. I meant which fico score version, Score EX8?

22 in the last 12 months? Do any line up with this or 30 days off? Only. 😉

Even if a month off, as I don't know if the loan inquiry buffer extends the penalty by a month or results in only an 11 month penalty. Thoughts on that everyone?

Re: What goes into "seeking credit" reason code?

SouthJamaica — Thu, 22 Oct 2020 03:56:49 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:
Which version of Experian what is this on? And how many scoreable inquiries do you have at Experian?
I'm guessing that your questions are directed to me.

If so, the answers are:

(a) Identity Works Plus, and

(b) only 22
@SouthJamaica Yes, indeed, my friend. I meant which fico score version, Score EX8?

Yes this has all been about EX FICO 8.

22 in the last 12 months?

Yes.

Do any line up with this or 30 days off?

No, the most recent was 35 days.

Only. 😉

Even if a month off, as I don't know if the loan inquiry buffer extends the penalty by a month or results in only an 11 month penalty. Thoughts on that everyone?

Re: What goes into "seeking credit" reason code?

Anonymous — Thu, 22 Oct 2020 04:23:03 GMT

SJ And I’m sure you pull Experian everyday, so you would’ve noticed; that’s crazy! I don’t even have a theory. Because nothing else changed that’s crazy.

Re: What goes into "seeking credit" reason code?

SouthJamaica — Thu, 22 Oct 2020 04:39:41 GMT

@Anonymous wrote:
SJ And I’m sure you pull Experian everyday, so you would’ve noticed; that’s crazy! I don’t even have a theory. Because nothing else changed that’s crazy.

Yes I pull it every day.

If Birdman7 doesn't even have a theory, then I've asked a good question

Re: What goes into "seeking credit" reason code?

Anonymous — Thu, 22 Oct 2020 04:47:19 GMT

Yes you sure have SJ! 😉