topic Re: Credit Simulator in Rebuilding Your Credit

Credit Simulator

Anonymous — Mon, 23 Jul 2018 18:15:09 GMT

So I've been working on figuring out why my credit is firmly mediocre (683x3) and would like some thoughts. Using the FICO simulator it looks like there are several things. I've had 2 30 day missed payments reported (one disputed and removed). The other is not utilizing credit cards at all. I've not used any credit cards for the last 10 years and my assumption has been that I have an abundance of school loans, auto loans and a mortgage that is payed perfectly other than the previously mentioned misses. I've had only 3 inquiries during which I was attempting to apply for a mortgage and discovered that my credit is kind of rotten.

Using the simulator it indicates that my score should go up by 50 points across the board by opening a credit card so I've done so and nothing has changed. This was about 2 weeks ago and I've had numerous notifications that my credit has improved by a point or two from reported payments on school loans but no effect from the credit card. Similarly I had disputed a late payment and there was no change in my credit score when that was removed. What the heck? I need to be >700 for a out of state move and this score is infuriating and doesn't make sense! Any other experiance with a similar situation?

EDIT: The score simulator is from Myfico.com Thanks for the quick replies.

Re: Credit Simulator

Pikaboo-icu — Mon, 23 Jul 2018 18:13:17 GMT

Welcome to My Fico

Couple things, those simulators are hit & miss, in other words, not entirely accurate.

Reading & seeking advice on the forums here will help you much more than a simulator.

Opening a card or three will help your score in the end, however, it could take a lil dip at the start and it will take a little time to see the benefit.

Has the card even shown up on your CR yet?

It might take a couple months to see optimum benefit but it will help with "types of credit" and also as you establish good payment history.

Have you tried a GW letter/call asking to have the other 30 day late removed? That could help your score a lot.

CHEERS

Re: Credit Simulator

rbentley — Mon, 23 Jul 2018 18:13:04 GMT

You don't say where you got the simulator from. The truth is that there isn't a very good simulator out there. The FICO algorithm isn''t that easy to engineer, although we do know the components that make up a score. The simulators on free sites like CK and CS will almost always recomend that you get another credit card, because that is how they make their money. Often another card is exactly the wrong thing to do. An additional card may help you score if it reduces your utilization, but in the short run you will get a score decrease for the inquiry and the resulting reduction in your AAoA and AAoYA.

Re: Credit Simulator

Pikaboo-icu — Mon, 23 Jul 2018 18:14:43 GMT

@rbentley wrote:
You don't say where you got the simulator from. The truth is that there isn't a very good simulator out there. The FICO algorithm isn''t that easy to engineer, although we do know the components that make up a score. The simulators on free sites like CK and CS will almost always recomend that you get another credit card, because that is how they make their money. Often another card is exactly the wrong thing to do. An additional card may help you score if it reduces your utilization, but in the short run you will get a score decrease for the inquiry and the resulting reduction in your AAoA and AAoYA.

OP hasn't had any cards in the last 10 years so getting one could help but we know the bump is not immediate.

Re: Credit Simulator

Anonymous — Mon, 23 Jul 2018 20:44:02 GMT

Cards reporting low balances will help. Put small reacurring bills on all your cards. I’ve started buying $1 amazon gift cards to myself on every card every month.