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Credit scoring system is so rigged!

anfbaseball28
Valued Member

Credit scoring system is so rigged!

How the hell when a creditor messed up on my payment I get a 30 day late and it drops my credit -42 points and than when they fix and remove it I only get +1 point back?  I only checked my credit on myKarma but I wouldnt think it would be that big of difference from checking like the bureau site itself.  Am I wrong? 

Message 1 of 29
28 REPLIES 28
Dumbee
Established Contributor

Re: Credit scoring system is so rigged!

In reference to your other post, you paid off the loan

 

By paying it off while having another open loan, you probably increased your aggregate utilization (% utilized across all installment account)

 

 Without another other open loan you'd also lose the points along with more for credit mix

 

Also, something else may have changed in your profile, like revolving utilization % or % of accounts reporting a balance

 

Scoring isn't rigged as much as it wants to see low risk behavior; since it doesn't take into account income, it has to use utilization %. As you approach lower % utilized you pose a lower default risk on OPEN accounts.


Smiley Embarassed
Personal/40.15K Biz/23K POT/17K
Message 2 of 29
AllZero
Super Contributor

Re: Credit scoring system is so rigged!


@anfbaseball28 wrote:

How the hell when a creditor messed up on my payment I get a 30 day late and it drops my credit -42 points and than when they fix and remove it I only get +1 point back?  I only checked my credit on myKarma but I wouldnt think it would be that big of difference from checking like the bureau site itself.  Am I wrong? 


CreditKarma is great for supplying your credit report. Not so great for scores. VantageScores is not primarily what lenders use.

 

$1 you can obtain your 3 bureau FICO 8 scores and reports at Experian or CreditCheckTotal (part of Experian). Cancel in 7 day or less to avoid the re-occurring monthly charge. Wash, Rinse, and Repeat as needed.

AnnualCreditReport. Free weekly 3 bureau online reports through April 2021.

 

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

Message 3 of 29
anfbaseball28
Valued Member

Re: Credit scoring system is so rigged!

I have $0 credit card debt which hasn't reported as I just paid all $55k at once.  Hopefully that will bump it ☺️


@AllZero wrote:

@anfbaseball28 wrote:

How the hell when a creditor messed up on my payment I get a 30 day late and it drops my credit -42 points and than when they fix and remove it I only get +1 point back?  I only checked my credit on myKarma but I wouldnt think it would be that big of difference from checking like the bureau site itself.  Am I wrong? 


CreditKarma is great for supplying your credit report. Not so great for scores. VantageScores is not primarily what lenders use.

 

$1 you can obtain your 3 bureau FICO 8 scores and reports at Experian or CreditCheckTotal (part of Experian). Cancel in 7 day or less to avoid the re-occurring monthly charge. Wash, Rinse, and Repeat as needed.

AnnualCreditReport. Free weekly 3 bureau online reports through April 2021.

 

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20


 

Message 4 of 29
AllZero
Super Contributor

Re: Credit scoring system is so rigged!


@anfbaseball28 wrote:

I have $0 credit card debt which hasn't reported as I just paid all $55k at once.  Hopefully that will bump it ☺️

That's a big chunk of change. Zero debt is the best. Scores will follow. Smiley Happy

Message 5 of 29
anfbaseball28
Valued Member

Re: Credit scoring system is so rigged!

Yeah I sold a few things that I owned .  It was more like $58k, along with paying a few installment loans ($24k).... =$82k paid in one day.  

Message 6 of 29
AllZero
Super Contributor

Re: Credit scoring system is so rigged!


@anfbaseball28 wrote:

Yeah I sold a few things that I owned .  It was more like $58k, along with paying a few installment loans ($24k).... =$82k paid in one day.


Yup, that is a big amount. I'm sure your future self will thank you. Double digit APR on revolving accounts can bleed one dry on interest payments.

Message 7 of 29
anfbaseball28
Valued Member

Re: Credit scoring system is so rigged!

Thanks bro I can honestly sleep at night. 

Message 8 of 29
CYBERSAM
Valued Contributor

Re: Credit scoring system is so rigged!


@anfbaseball28 wrote:

Yeah I sold a few things that I owned .  It was more like $58k, along with paying a few installment loans ($24k).... =$82k paid in one day.  


wow amazing job! 👍👍







           
Message 9 of 29
ccquest
Established Contributor

Re: Credit scoring system is so rigged!

Depending on what sort of credit limits you had on those accounts and what sort of utilization % you sat with those at and how long... Is there a chance you might get balance chased? I know it happens when people pay down the balance partially but I'm not sure if the same thing happens to a card that gets paid in full?

Congrats on getting back to $0 though, big accomplishment!
as of 4/1/21
Current Cards:
Message 10 of 29
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