topic Re: FICO Score Increase in Understanding FICO® Scoring

FICO Score Increase

BMW_328i — Thu, 01 Apr 2021 23:45:51 GMT

Hello, My TU score increased by 19 points with no reason or description. I do have a CC that hit the 1 year mark- have a been "rebucketed"? Thanks in advance!

Re: FICO Score Increase

dragontears — Thu, 01 Apr 2021 23:59:00 GMT

@BMW_328i wrote:
Hello, My TU score increased by 19 points with no reason or description. I do have a CC that hit the 1 year mark- have a been "rebucketed"? Thanks in advance!

Is that your youngest account?

Re: FICO Score Increase

Slabenstein — Thu, 01 Apr 2021 23:59:35 GMT

If you're on a clean card and don't have any revolvers that are younger, it sounds like new revolver-->no new revolver scorecard reassignment, yeah.

Re: FICO Score Increase

BMW_328i — Fri, 02 Apr 2021 00:12:42 GMT

I have a dirty scorecard and it's currently the oldest- the other CC is two months.

Re: FICO Score Increase

Slabenstein — Fri, 02 Apr 2021 02:29:25 GMT

@BMW_328i wrote:
I have a dirty scorecard and it's currently the oldest- the other CC is two months.

Ah, so it wouldn't have been no-new-revolver in any case. We don't know what segments the dirty scorecards, tho one theory is PR/no PR and recency of delinquency. If you want to post a more complete picture of your profile before and after the score change we can help you try to narrow down what the cause might have been.

Re: FICO Score Increase

Anonymous — Fri, 02 Apr 2021 01:15:59 GMT

I've had my score jump that many points or more for no apparent reason. Maybe it could be another one of those random events with a dash of good vibes from your improved credit history. Congrats 🎉

Re: FICO Score Increase

Anonymous — Fri, 02 Apr 2021 03:48:16 GMT

For the dirty cards, I'm pretty sure PR/no PR is the first level Segmenter from the testers of the old models via reason code resolution, plus obscure references in fico documentation.

However, with version 8, two new dirty scorecards were introduced that we have less information on and here's where theory comes in as @Slabenstein alluded to.

I have theorized Version 8 introduced a recency segmenter, breaking each dirty scorecard into 2, a recent and mature segment of itself. Fico documentation also obscurely references recency, but that is far from concrete. However, datapoints do support my theory that recency segments delinquency scorecards at 2 years.

Unfortunately, we are still collecting datapoints to support my theory as far as the proposed PR card split goes, but fico mentioned recency quite prominently in it's documentation and it seems to make sense, since it appears the theory works out for the delinquency card.

Would be nice to find a Segmentation Threshold for reassignment for the PR card though. Time will tell.

@BMW_328i as for your change, when was your most recent Delinquency? Do you have any public records? if so when was the most recent?

Re: FICO Score Increase

Anonymous — Fri, 02 Apr 2021 03:46:38 GMT

@BMW_328i another possibility is Age of oldest Revolving Account which is a Scoring Factor. You said thats your oldest, but you said you were in a dirty card, so I don't know if you have any that are older that are maybe closed?

Re: FICO Score Increase

BMW_328i — Fri, 02 Apr 2021 03:52:13 GMT

My last derog was two months ago on an installment loan. It's current now. Never had PRs. I also have a collection.

@Anonymous wrote:
For the dirty cards, I'm pretty sure PR/no PR is the first level Segmenter from the testers of the old models via reason code resolution, plus obscure references in fico documentation.

However, with version 8, two new dirty scorecards were introduced that we have less information on and here's where theory comes in as @Slabenstein alluded to.

I have theorized Version 8 introduced a recency segmenter, breaking each dirty scorecard into 2, a recent and mature segment of itself. Fico documentation also obscurely references recency, but that is far from concrete. However, datapoints do support my theory that recency segments delinquency scorecards at 2 years.

Unfortunately, we are still collecting datapoints to support my theory as far as the proposed PR card split goes, but fico mentioned recency quite prominently in it's documentation and it seems to make sense, since it appears the theory works out for the delinquency card.

Would be nice to find a Segmentation Threshold for reassignment for the PR card though. Time will tell.

@BMW_328i as for your change, when was your most recent Delinquency? Do you have any public records? if so when was the most recent?

Re: FICO Score Increase

BMW_328i — Fri, 02 Apr 2021 03:55:17 GMT

TU also gave me like 13 points or so when it first reported current. IDK. Looks like I have to be a Harvard grad to understand these algorithms.

Re: FICO Score Increase

dragontears — Fri, 02 Apr 2021 04:04:26 GMT

@BMW_328i wrote:
TU also gave me like 13 points or so when it first reported current. IDK. Looks like I have to be a Harvard grad to understand these algorithms.

Well they were written by people with advanced degrees and purposely made hard to figure out (how would FICO be able to sell its algorithm use if it was easy to reverse engineer?).

In the end, there will be some things that we can't figure out because it is part of the trade secret and not published anywhere. But all data points are useful in trying to figure out as much as possible.

Re: FICO Score Increase

Anonymous — Fri, 02 Apr 2021 04:35:24 GMT

@BMW_328i wrote:
TU also gave me like 13 points or so when it first reported current. IDK. Looks like I have to be a Harvard grad to understand these algorithms.

@BMW_328i A collection is classified as a PR, for purposes of the algorithm.

The most recent derog turning 2 months old did not likely yield any points, but look for some at 6 months.

Yes, anytime an account goes delinquent, penalties are imposed via the payment history category in at least 3 separate Scoring Factors:

1. amount past due on delinquent accounts,

2. the delinquency designator itself: 30, 60, etc.. and

3. a multiple delinquency penalty, if you have multiple accounts with delinquencies.

so yes when you paid that account and brought it current, you received an increase by reducing the 'amount past due' Scoring Factor Penalty and possibly some points due to reducing utilization in the amounts owed category.

if the card that turned one year old is your oldest credit card and you have no other older credit cards on your credit report that are closed, I have no doubt you just gave us a nice data point for age of oldest revolving account turning 12 months old.