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FICO 10/10T Changes Could Lower Your Credit Score

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New Member

Re: FICO Changes Could Lower Your Credit Score

I think I'll stick with the tried and true, pay my bills on time, PIF on CCs, don't open unnecessary accounts, pay cash instead of swiping, and keep my utilazation under 10% when I do have to carry a balance. It's boring but darn near bulletproof to keep your score high.

Message 51 of 118
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Valued Contributor

Re: FICO Changes Could Lower Your Credit Score

It will be interesting to see how the future plays out. It appears to me that having an emergency fund is going to be crucial than ever to keep from having to tread water as mentioned up thread. 

















Your FICO credit scores are not just numbers, it’s a skill.

Message 52 of 118
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Regular Contributor

New FICO changes could lower your credit score

Interesting. Not sure how this will really hurt folks though.

 

https://www.wsj.com/articles/fico-changes-could-lower-your-credit-score-11579780800?mod=mktw

 

If you can't access WSJ then here is a snippet of the article.

 

https://www.marketwatch.com/story/new-fico-changes-could-lower-your-credit-score-2020-01-23

 

Current FICO 8 Scores:
EQ 792 (12/24/19), TU 819 (12/23/19), EX 824 (12/23/19)
EQ 788 (11/22/19), TU 817 (11/22/19), EX 828 (11/23/19)
EQ 772 (10/29/19), TU 799 (10/29/19), EX 808 (10.29/19)
Message 53 of 118
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Valued Contributor

Re: FICO Changes Could Lower Your Credit Score


@MaxMoneyMaker wrote:

I think I'll stick with the tried and true, pay my bills on time, PIF on CCs, don't open unnecessary accounts, pay cash instead of swiping, and keep my utilazation under 10% when I do have to carry a balance. It's boring but darn near bulletproof to keep your score high.


How about only swipe if you have the cash to pay for it? I like the bonuses and perks I receive for swiping. Just make sure that interest paid on credit cards isn't more than the perks that you receive. 

 

Utilization has to do with available credit whether you PIF or carry a balance. Most would agree you need to keep your UTI under 8.99% to continue to receive the FICO scoring bonus, however, who knows with the FICO score 10 and 10 T models. 

















Your FICO credit scores are not just numbers, it’s a skill.

Message 54 of 118
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Established Contributor

Re: FICO Changes Could Lower Your Credit Score

Does personal loan include SSL? If so, a lot myfico members like myself would take a hit.







Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-795,Eq08-807,Tu08-787,EX98-761,Eq04-742
Goal Score: Ex98-760,Eq04-760


Take the myFICO Fitness Challenge

History of my credit
Message 55 of 118
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Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

From one of the articles I read it appeared the loan would be negative if you moved your credit card debt over and then continue to accumulate credit card debt. But it definitely did say personal loans would be flagged.

Maybe they’re going to apply more break points to installment loans.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 56 of 118
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Established Member

Re: FICO Changes Could Lower Your Credit Score

Well...My Fico 8 went down 23 points on Experian because I payed $700 on the only credit card I have a balance on. 

I have 9 cards, I owed 9500, paid it down to 8800 and I went from 689 to 666. I'm now afraid that if I pay more than the minimum my scores will still go down...but I need to pay it off because it's a card with 0% APR till Nov 2020. :'(






Message 57 of 118
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Senior Contributor

Re: FICO Changes Could Lower Your Credit Score

Something else happened on your report your score did not go down from paying a credit card balance down.










(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated DEC'19.

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? (clean/dirty), Number of accounts open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AoYR-Age of Youngest Revolver (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new accounts, with open loan on record.
If you don't know where you fall, just list whether you have any baddies, your number of open and closed accounts, AoOA, AoYR and whether you have a loan on record.
For utilization questions, list individual and aggregate utilizations, revolving and installment. please.
Message 58 of 118
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Super Contributor

Re: FICO Changes Could Lower Your Credit Score


@Subexistence wrote:
Does personal loan include SSL? If so, a lot myfico members like myself would take a hit.

SSL is a secured loan, it's doubtful this will be seen as a negative. 



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 59 of 118
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Moderator Emeritus

Re: FICO Changes Could Lower Your Credit Score


@Saeren wrote:

@Subexistence wrote:
Does personal loan include SSL? If so, a lot myfico members like myself would take a hit.

SSL is a secured loan, it's doubtful this will be seen as a negative. 


Not all such loans report as secured.  Hard to say TBH.

 

I had two more thoughts about FICO 10:

 

1) Trended data makes all sorts of sense, personal loan questions aside, we might not have to AZEO anymore as it's pretty simple to tell who the transactors are when it's obvious we're PIFing with balance = payment month after month.

 

2) I strongly suspect there may be a significant move towards this from a risk analysis perspective, and it just might be the first one that the GSE's seriously look at because they've grumbled in the past about scoring being somewhat manipulatable... and this new version quite possibly will have the least distortion from FICO strategists and the least punishing to people who don't know (the vast majority).

 

If the GSE's move, the mortgage tiers might move too.  This would be F'n huge, though FICO is suggesting the average is going to be a wash so we'll see.

 

It's really too early to tell frankly how this is going to all play out but I'm pretty sure it's not going to suck for people on this forum other than people who are just debt shuffling on repeated 0% cards without making any progress... and that is a dangerous game to play given 0% offers might suddenly dry up anyway.




        
Message 60 of 118
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