topic Re: Your FICO score has decreased from 643 to 643 in Understanding FICO® Scoring

Your FICO score has decreased from 643 to 643

fortis — Sun, 03 Mar 2024 15:18:55 GMT

I recieved an alert from FICO that "Your FICO score has decreased from 643 to 643"

That doesn't make any sence.

Re: Your FICO score has decreased from 643 to 643

JoeRockhead — Sun, 03 Mar 2024 15:30:24 GMT

Very true, it doesn't make sense.... but, is a fairly common occurrence and has happened to me (and others) many times. I'd give it little thought.

Re: Your FICO score has decreased from 643 to 643

markbeiser — Sun, 03 Mar 2024 18:23:44 GMT

Ignore it, you will see it a lot, means nothing.

Re: Your FICO score has decreased from 643 to 643

CorpCrMgr1 — Mon, 04 Mar 2024 13:15:41 GMT

No, it doesn't make sense. Neither did my alert that my CS dropped four points because of balance on accounts. I was below 1% of my TCL and not close to 3% on any card.

Then a couple of days it went up four points because I made a $199 payment on a Chase CC. No, I didn't. It was considerably more. I PIF weekly. I sometimes pay twice a week to clear pending payments.FICO is having problems.

Re: Your FICO score has decreased from 643 to 643

Horseshoez — Mon, 04 Mar 2024 13:50:10 GMT

LOL, your FICO score decreasing from 643 to 643 makes about as much sense as the letter I got in the U.S. Mail last week from PenFed, "The interest rate on your credit card is going up to 17.99% from 17.99%". Really? Say it isn't so!

Re: Your FICO score has decreased from 643 to 643

Thomas_Thumb — Tue, 05 Mar 2024 17:47:30 GMT

Certain types of activity trigger a pull of your credit data which generates a score. A classic example may be a change in CC balance being reported to the credit bureaus. Say you owe $1k on a $4k limit card (25% UT). A $200 payment is made and a new balance of $800 gets reported (20% UT). It is unlikely the drop in card UT from 25% to 20% would change score. Similarly, if you have 8 cards with 4 reporting balances and pay off a small balance of $85 to $0, that activity may get reported and trigger a pull. The change likely has no impact on score.

It is always an event that triggers a pull. If a score change does occur it may not correlate to the event as other things may have changed on your report(s) that are impacting score. Not all changes on credit reports are trigger events.

Re: Your FICO score has decreased from 643 to 643

pizzadude — Tue, 05 Mar 2024 17:58:25 GMT

Moving to Understanding FICO Scoring

Re: Your FICO score has decreased from 643 to 643

fortis — Tue, 05 Mar 2024 18:58:27 GMT

@Thomas_Thumb wrote:
Certain types of activity trigger a pull of your credit data which generates a score. A classic example may be a change in CC balance being reported to the credit bureaus. Say you owe $1k on a $4k limit card (25% UT). A $200 payment is made and a new balance of $800 gets reported (20% UT). It is unlikely the drop in card UT from 25% to 20% would change score. Similarly, if you have 8 cards with 4 reporting balances and pay off a small balance of $85 to $0, that activity may get reported and trigger a pull. The change likely has no impact on score.

It is always an event that triggers a pull. If a score change does occur it may not correlate to the event as other things may have changed on your report(s) that are impacting score. Not all changes on credit reports are trigger events.

What changed was installment loans closed and are payed as agreed. From what i read is that credit mix is 10% and payment history is 35%, this is what confesses me. They seem to focus more on credit mix than payment and i thought the score would increase.

Re: Your FICO score has decreased from 643 to 643

Thomas_Thumb — Tue, 05 Mar 2024 20:27:15 GMT

@fortis wrote:
@Thomas_Thumb wrote:
Certain types of activity trigger a pull of your credit data which generates a score. A classic example may be a change in CC balance being reported to the credit bureaus. Say you owe $1k on a $4k limit card (25% UT). A $200 payment is made and a new balance of $800 gets reported (20% UT). It is unlikely the drop in card UT from 25% to 20% would change score. Similarly, if you have 8 cards with 4 reporting balances and pay off a small balance of $85 to $0, that activity may get reported and trigger a pull. The change likely has no impact on score.

It is always an event that triggers a pull. If a score change does occur it may not correlate to the event as other things may have changed on your report(s) that are impacting score. Not all changes on credit reports are trigger events.
What changed was installment loans closed and are payed as agreed. From what i read is that credit mix is 10% and payment history is 35%, this is what confesses me. They seem to focus more on credit mix than payment and i thought the score would increase.

Yes, paying off and closing a loan is a trigger event that generates a score. Payment history is very important - are monthly installments payments always on-time or have there been lates? Loan balances are not payment history. Paying off a loan has no real impact on payment history.

Fico scoring models do look at aggregate balance to loan ratio on installment loans and presence of an open loan. If you have more than 1 loan, the loan being paid off typically has a lower B/L ratio than the loan that will remain. As a result aggregate B/L of open loans will increase when the loan closes. The new, higher, aggregate B/L ratio may be score neutral or cause a score drop depending on whether or not B/L crosses above a threshold. In your case, no significant threshold was crossed.

Re: Your FICO score has decreased from 643 to 643

fortis — Tue, 05 Mar 2024 22:22:51 GMT

The installments were always on time, the only messed up is the credit.

"Loan balances are not payment history. Paying off a loan has no real impact on payment history.", That strikes me as odd, i view paying a loan as a positive and should be factored in.

Re: Your FICO score has decreased from 643 to 643

Thomas_Thumb — Wed, 06 Mar 2024 01:35:48 GMT

With installment loans you are expected to paydown the balance per plan. Each month you have the loan the payment obligation is either met or not met. That is your payment history. Fico scores are designed to be a numerical representation of risk that a profile will incur a new 90+ day late on an open account. Paying off the loan has no bearing on risk.

If your loan payment history had a slew of lates, paying off the loan does not negate the poor credit management history. Likewise, if your loan payments were always ontime, paying off the loan won't void a history of responsible credit behavior.

Having a loan or incurring charges on credit cards are not negatives - that is the purpose of credit. Risk is determined and scored based on how the credit accounts are managed. For those with no revolving credit accounts or no installment loans, credit management can not be assessed based on history. That uncertainty translates to increased risk relative to someone with a positive payment history using that type of credit.

Re: Your FICO score has decreased from 643 to 643

CorpCrMgr1 — Wed, 13 Mar 2024 11:08:03 GMT

Hoping your CS has returned to its previous 643 from its drop to 643! 😁