Can anyone help explain a 9 pt drop on EQ fico?

[raine22]

I checked my EQ report today after paying down a credit card balance of $372. which left an account balance by statement post date of $31.00.  I expected my score to increase a point or so and instead to my suprise my score dropped from 673 about 2 weeks ago.

The only difference I could find on my credit report was under "understanding your score"

673 Fico  the 2 positives listed were 1) Bills paid on time; 2) Recent credit card use

664 Fico the 2 positives listed are 1) Bills paid on time; 2) Many accounts paid on time

Nothing had changed in the Whats hurting your score area.

I'll have another $2,000 less in credit card debt tomorrow once my US Bank and and Best Buy reports.

Can anyone explain the difference in the understanding your score and what potentially made my score drop?

Thanks so much!!

[stagefoursurvivor]

There is no figuring it out! I had an account erroneously report as charged off AND a hard inquiry but, my EQ score went UP 40 points! And to think, the rates we get charged are based on this voodoo!

[AndySoCal]

Did the reasons on what is hurting your score change in the order they where listed or did any new reason appear?

[Jazzzy]

Hi raine,

It is difficult to figure out the small changes in your FICO scores. Mine varies a few points back and forth depending upon how many credit cards report each month.

Also, it is possible you passed a certain level of history or average age of accounts. That could mean a rebucket where you are now being compared with consumers who have longer credit histories. It's all speculation unless you can find a difference between the two reports.

My advice would be to not sweat the small variables. Just keep paying debt down and doing it on time. The score will go in the right direction...but sometimes it's one step back and two forward.

[raine22]

There was no change at all in the area of "what's hurting your score"  and as I said, the only difference I could see at all other than the credit card balance decrease was the 2nd reponse in "what's helping your score" but that is supposed to be a positive.  It just went from #2 being "recent credit card use" to "many accounts paid on time".

The only other thing that I can think would change is that my US Bank is 1 year old May 1st, 2010 with a $5,000 credit limit but the amount owed had not reduced yet on this report but I did pull this on April 30th, not May 1st.

Newest Report:

Score 664 - only change #2 which read as follows:

You have many accounts that are in good standing.

Number of your accounts currently being paid as agreed
8 accounts

FICO High Achievers [?] have an average of 6 accounts currently being paid as agreed.

Your FICO score was helped because many of your accounts are in good standing. Your score considers the number of accounts where you are paying your bills as agreed - in your case this number is high.

Prior Report

Score 673

You've shown recent use of credit cards.

Your FICO score evaluates your mix of credit cards [?], installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders. You helped your FICO score by showing recent use of a credit card.

Maybe it thinks I have too many accounts I'm paying on therefore it's hurting me rather than helping me?  but wouldn't it say that in "what's hurting your score"

9 points isn't huge but when you think it will jump 9 and it goes down 9 it's frustrating!  I'm getting ready to apply for a loan for construction and I need every point I can manage lol 

Thanks for the replies!

[Jazzzy]

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@raine22 wrote:

Maybe it thinks I have too many accounts I'm paying on therefore it's hurting me rather than helping me?  but wouldn't it say that in "what's hurting your score"

9 points isn't huge but when you think it will jump 9 and it goes down 9 it's frustrating!  I'm getting ready to apply for a loan for construction and I need every point I can manage lol 

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Did these two reports show the exact same utilization percentages for your revolving debts? Did you show balances on the exact same number of debts?

No, it wouldn't always talk about paying on too many accounts under "what's hurting your score." I find the "reasons" given are often inconsistent and sometimes make no sense. You can't necessarily count on the reasons for...well...the reasons.

I do understand your frustration. And, yes, 9 points can be huge when you're trying for a mortgage loan.

[raine22]

Yes, the exact same # of accounts reporting.

The utilization decreased 1% in the newer report.  Also, #2 and #3 items hurting your score switched from:

Whats hurting you score on 664 FICO Score - newest report

#2 You've made heavy use of your available revolving credit. 65%

#3 You have a short credit history.  AAoA 4 years

Whats hurting your score on 673 FICO Score

#2  You have a short credit history. AAoA 4 years

#3 You've made heavy use of your available revolving credit. 66%

The #1 reason was both the same:  You have a serious delinquency (60 days past due or greater) or a derogatory description on your credit report. (2 old accounts, 1 still showing as an open account which was a Palisades Collection for a Verizon landline that has been paid since 10/2/2007)

[Jazzzy]

I'm stumped. Just one of the many wrinkles of FICO scoring.

How close are you to your mortgage numbers?

Have you tried to get those derogatory accounts off of your reports?

[raine22]

I tried in the past with Palisades.  They don't have it scheduled to fall off my CR until 2/2012.  DOL is 2/1/2004.  I'm going to give it a shot again before applying for Construction Loan.  I would think it would come off in 08/2011 even @ 7.5 years.  I thought about sending Verizon a GW to try and get it removed, a step I have never taken.  It's obviously hurting my score with great impact because they are still reporting open account - paid - but in status it shows 120+ days past due (could dispute this with EQ to remove the 120+ past due since it has been paid since May 2006).  It has never showed as a collection - shows as an instllment account.

The other account is Chase (was formerly Bank One) auto loan and I sent them a GW and they informed me they do not do GW's.  It was a vehicle that was a total loss and they kept charging obsured lates while wating on the insurance check to pay the loan off.  I was informed at the time that I didn't need to worry about the payment since it had been a total loss and they would deal with insurance company.  My stupidity!!  Live and learn :-)

I need to be @ or above 680 for FHA Construction.  My score will inscrease substantially once I pay down the CC utilization I should still be well over 680 on TU and EQ.  I just have no idea about Experian as I only have their Plus score or FAKO scores to compare too.  They are the worse CR I have. 

I'm planning on going to apply for Construction Loan in July so trying to work on all this now to prepare and get numbers in order.  Is why I was so confused on  how my EQ score took a nose dive by 9 points when the only thing I could see was that I brought down the utilization by 1%.

[Jazzzy]

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@raine22 wrote:

I tried in the past with Palisades.  They don't have it scheduled to fall off my CR until 2/2012.  DOL is 2/1/2004.  Did you mean date of first delinquency (DOFD)? It is the DOFD that will determine when this account falls off. It will be 7 1/2 years from the DOFD. If you have ever pulled your free reports, which come directly from the three credit bureaus, those reports will tell you either the DOFD or the date the account will drop.

@I'm going to give it a shot again before applying for Construction Loan.  I would think it would come off in 08/2011 even @ 7.5 years. I certainly think it's worth hitting them with a GW again. Be nice, humble, take responsibility, and let them know it is keeping you from getting a mortgage. It takes persistence.

 I thought about sending Verizon a GW to try and get it removed, a step I have never taken.  It's obviously hurting my score with great impact because they are still reporting open account - paid - but in status it shows 120+ days past due (could dispute this with EQ to remove the 120+ past due since it has been paid since May 2006).  It has never showed as a collection - shows as an instllment account. Again, it wouldn't hurt to try a GW. Did this ever go to collections? Was it ever charged off? Is the original creditor (OC) reporting all that is on your reports with this debt?

The other account is Chase (was formerly Bank One) auto loan and I sent them a GW and they informed me they do not do GW's.  It was a vehicle that was a total loss and they kept charging obsured lates while wating on the insurance check to pay the loan off.  I was informed at the time that I didn't need to worry about the payment since it had been a total loss and they would deal with insurance company.  My stupidity!!  Live and learn :-) This is an example of why I think everyone should have credit monitoring. You could have caught this the first time it reported and maybe have nipped the problem. Is this still reported from the OC? Or, did it go to collections?

@I need to be @ or above 680 for FHA Construction. Is the 680 the minimum level for your bank? I've seen a lot of folks have to have 620 as a middle score. You might want to call a couple of other lenders and see what they use for minimum scores.

My score will inscrease substantially once I pay down the CC utilization I should still be well over 680 on TU and EQ.  I just have no idea about Experian as I only have their Plus score or FAKO scores to compare too.  They are the worse CR I have. If you have high utilization and can conquer that, you may be home free. Be aware that the TU we can buy here is the TU 98, and many lenders use trimerge reports that use TU 04. The TU 04 is a score that consumers can't buy. Just one more frustration in the FICO score process.

I'm planning on going to apply for Construction Loan in July so trying to work on all this now to prepare and get numbers in order. This is good thinking. Too many people don't learn about the surprises on their credit reports until they sit down with their mortgage lender.

Is why I was so confused on  how my EQ score took a nose dive by 9 points when the only thing I could see was that I brought down the utilization by 1%.

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