topic I DON'T CARE FICO!!!!!!!! in Understanding FICO® Scoring

I DON'T CARE FICO!!!!!!!!

OptimalCS — Fri, 15 Mar 2013 16:01:32 GMT

The most upsetting thing about FICO scoring is that you actually lose points for not carrying a small balance. That's the stupidest thing I've ever heard! If staying out of debt means losing 7 points (which I did today) so be it!

Re: I DON'T CARE FICO!!!!!!!!

OhioCPA — Fri, 15 Mar 2013 16:05:42 GMT

You don't lose points for not carrying a balance, you lose points for not using your card.

To maximize your FICO score you need to let at least one credit card report a balance on the statement date. You can pay the balance as soon as the statement cuts and still maximize your score.

People with who don't use credit cards are statistically not as credit worthy as those who use credit cards responsibly. FICO is just reflecting this in the scoring.

Re: I DON'T CARE FICO!!!!!!!!

Gunnar419 — Fri, 15 Mar 2013 16:34:29 GMT

It really is insane (even though I understand the reasoning) that people who get out of debt are punished, rather than rewarded, in this system that so heavily influences our lives.

Re: I DON'T CARE FICO!!!!!!!!

Anonymous — Fri, 15 Mar 2013 16:40:18 GMT

@OhioCPA wrote:
You don't lose points for not carrying a balance, you lose points for not using your card.

To maximize your FICO score you need to let at least one credit card report a balance on the statement date. You can pay the balance as soon as the statement cuts and still maximize your score.

People with who don't use credit cards are statistically not as credit worthy as those who use credit cards responsibly. FICO is just reflecting this in the scoring.

I have to disagree with this statement. There are many consumers that reach 800+ scores without the use of CC or even have one.

Re: I DON'T CARE FICO!!!!!!!!

OhioCPA — Sun, 17 Mar 2013 13:38:07 GMT

@Anonymous wrote:
I have to disagree with this statement. There are many consumers that reach 800+ scores without the use of CC or even have one.

I don’t see where your statement disproves my statement. There are several anecdotal reports of drops in FICO scores with zero credit cards reporting. Whether that is a drop from 720 to 710 or 830 to 825, it is still a drop in score.

Re: I DON'T CARE FICO!!!!!!!!

Shogun — Sun, 17 Mar 2013 13:51:54 GMT

I took a 9 point drop this morning from EQ due to $0 CC balances. I'd had a $183 showing on my Walmart GE card last month, but paid it off and didn't let anything else post.

Re: I DON'T CARE FICO!!!!!!!!

Anonymous — Sun, 17 Mar 2013 15:26:41 GMT

@OhioCPA wrote:
@Anonymous wrote:
I have to disagree with this statement. There are many consumers that reach 800+ scores without the use of CC or even have one.
I don’t see where your statement disproves my statement. There are several anecdotal reports of drops in FICO scores with zero credit cards reporting. Whether that is a drop from 720 to 710 or 830 to 825, it is still a drop in score.

The part about not being as credit worthy was my point, not the drops in score. And I didn't say I was trying to disprove you, I simply said I disagreed. My option of opinion.

Re: I DON'T CARE FICO!!!!!!!!

scenery_guy — Sun, 17 Mar 2013 15:48:11 GMT

@Shogun wrote:
I took a 9 point drop this morning from EQ due to $0 CC balances. I'd had a $183 showing on my Walmart GE card last month, but paid it off and didn't let anything else post.

Yep, I got a 5 point bump for letting $180 show on a card before paying it off AFTER the statement posted. Pretty simple concept.

Re: I DON'T CARE FICO!!!!!!!!

RobertEG — Sun, 17 Mar 2013 20:12:54 GMT

FICO is not a measure of overall consumer credit-worthiness. It is a measure of risk of becoming delinquent on repayment of debt in the near future.

Without a showing of debt and its repayment, it cant do its thing.

Re: I DON'T CARE FICO!!!!!!!!

rlx01 — Sun, 17 Mar 2013 23:04:47 GMT

FWIW, the "balance" reported differs.

My CU reports my outstanding balance 14 days after the statement cut date. It has 0 to do with the actual balance at the cut, or what I paid.

It's easy to play with the util % because of this without actually ever revolving a balance.

Re: I DON'T CARE FICO!!!!!!!!

DaveSignal — Sun, 17 Mar 2013 23:31:49 GMT

@Aim720 wrote:
The most upsetting thing about FICO scoring is that you actually lose points for not carrying a small balance. That's the stupidest thing I've ever heard! If staying out of debt means losing 7 points (which I did today) so be it!

This is not true. Carrying a balance means that your statement posts, say for $600, and then you only pay a lesser amount, say $200, by the due date. In this case, you are "carrying a balance" of $400. You DO NOT need to do this. You simply need to show usage of your card. If you continually use your card, let the statement post, and then pay the statement balance by the due date, you are not carrying a balance, you pay no interest, and your FICO benefits slightly as it shows responsible credit management.