topic Re: FICO Simulator Question in Understanding FICO® Scoring

FICO Simulator Question

Anonymous — Mon, 17 Aug 2009 13:14:57 GMT

I pulled a new score Saturday and used the FICO simulator to project my score. I am wanting to apply for a new mortgage in March so I ran the simulator for on-time payments for 6 months. It says that my score will climb from 641 to a range of 691-731. Is the simulator fairly accurate? I have negs on my report and I know it is weighing those. Also, I have 4 accounts that are in good standing with no lates for over 4 years. My newest negative line was first reported 2 years ago. It is exciting to think that my score will climb between now and March!

Re: FICO Simulator Question

marty56 — Mon, 17 Aug 2009 21:27:52 GMT

What is your util. I dont think 6 months of on time payments would cause a score raise that much unless you are paying down a lot of util or a derog is close to falling off.

Re: FICO Simulator Question

Anonymous — Tue, 18 Aug 2009 02:21:46 GMT

My while my debt is low, my util is high. I told the simulator I would pay that down. It was interesting to note that monthly payments to systematically reduce the debt did more for my projected score than to pay the debt all at once.

Also, the newest neg I have is 2 years old and I have no late payments in 4+ years. The good credit that I have now is fairly new. My house note was sold in 2005 so a the new company is now reporting it as of that date. I bought a truck in 2007 and also opened a small credit card in 2007. Does the fact that my credit will age as time goes along help my score go up?

Re: FICO Simulator Question

Anonymous — Tue, 18 Aug 2009 03:12:13 GMT

Hi rodeogal!

If you haven't do so already, you should read Credit Scoring 101 (link in my siggie). The simulator takes into account the "aging" of your tradelines in conjunction with the paydown. That's why it estimated a more significant gain than the singular (immediate) act of paying down all at once. The aging of your accounts does indeed have a positive impact on your scores.

rodeogal wrote:
My while my debt is low, my util is high. I told the simulator I would pay that down. It was interesting to note that monthly payments to systematically reduce the debt did more for my projected score than to pay the debt all at once.

Also, the newest neg I have is 2 years old and I have no late payments in 4+ years. The good credit that I have now is fairly new. My house note was sold in 2005 so a the new company is now reporting it as of that date. I bought a truck in 2007 and also opened a small credit card in 2007. Does the fact that my credit will age as time goes along help my score go up?