There actually is a logic behind the way the FICO scores change. It can be frustrating to see your scores rise and fall when you think they should have responded the opposite way. You will never win if you give up though. If you stick around and continue to learn why FICO does what it does you will be able to steer where it goes.
@patchespuppy wrote:
Why did the score go up only 19 when the accounts went down $1,000 BUT went up 18 points when $167 was charged on a card.
As a point I paid off that account the same day but it never reflected that...just showed I charged something.
There are certain "utilization-brackets" where you fall into different scoring-ranges in regards to your credit utlization. I can only assume that paying off the $1K brought you slightly below the required utilization ratio to reach the 778 while the additional $178 pushed you back into a different section.
Usually, charges on a CC that are paid off right away don't make it on your report - unless you are a bit unlucky and the reporting falls exactly between the time the charge hits your account and your payment gets credited.
Sometimes, it's really frustrating and you have to be a real FICO-professor to understand this system. While I learned a lot about credit-scores over the last couple of years, I certainly don't (and probably never will) know everything about it, either.
If you fixate on the short term changes you'll be frustrated. Keep an eye on the long term trends.
@patchespuppy wrote:
Why did the score go up only 19 when the accounts went down $1,000 BUT went up 18 points when $167 was charged on a card.
While we don't know the algortihms used it's clear that there aren't simple direct relationships like you're assuming. It's not a matter of "pay X down and get Y points, charge A up and get B points. What was the balance of the card that you charged $167 to? If a card had a 0 balance and starts reporting a balance it can be viewed as a negative factor, IIRC.
Further, a $1,000 reduction will have a different impact depending on one's debt. There is direct no dollar to points relationship. One's score is affected by utilization. A person with $20,000 in revolving debt on $25,000 limits would have utilization of 80%. A $1,000 payment would only reduce utilization to 76%. On the other hand, a person with $3,000 in revolving debt and $5,000 limits would have utilization of 60%. A $1,000 payment for that person would reduce utilization to 40%.
In other words, while you only saw a 19 point increase for $1,000 another person could see more -- or even less.
@patchespuppy wrote:The credit bureaus have it rigged so you will never win.
It's not a matter of winning or losing. It's about maintaining your credit and plenty of people have good scores. Everyone is subject to the same system so you can't extrapolate such a broad, sweeping generalization using only yourself. A single data point never defines a trend. Again, stop fixating on the short term changes or you'll be constantly frustrated. This is a marathon, not a sprint.
At 750+ any gains or losses really don't mean much anyway as you're in the top bracket regardless of the specific score.
@patchespuppy wrote:
From now on I could give a darn less what my credit score is.
Could means the opposite of your intent. See also: http://grammarhome.com/images/could-care-less.jpg 
Keep at it and don't be demoralized by small point fluctuations like this. Definitely read up and get a better understanding of scoring. It may not make any more sense but at least you'll have a better understanding of how you can most effectively improve your scores.
@patchespuppy wrote:
As a point I paid off that account the same day but it never reflected that...just showed I charged something.
Balances are generally reported at statement close. It really doesn't matter when you made the payment. The date your balance is reported is when your score will reflect the change. Keep in mind that it takes a few days for your lender to report and for the CRA to update your report.
@takeshi74 wrote:If you fixate on the short term changes you'll be frustrated. Keep an eye on the long term trends.
@patchespuppy wrote:
Why did the score go up only 19 when the accounts went down $1,000 BUT went up 18 points when $167 was charged on a card.
While we don't know the algortihms used it's clear that there aren't simple direct relationships like you're assuming. It's not a matter of "pay X down and get Y points, charge A up and get B points. What was the balance of the card that you charged $167 to? If a card had a 0 balance and starts reporting a balance it can be viewed as a negative factor, IIRC.
Further, a $1,000 reduction will have a different impact depending on one's debt. There is direct no dollar to points relationship. One's score is affected by utilization. A person with $20,000 in revolving debt on $25,000 limits would have utilization of 80%. A $1,000 payment would only reduce utilization to 76%. On the other hand, a person with $3,000 in revolving debt and $5,000 limits would have utilization of 60%. A $1,000 payment for that person would reduce utilization to 40%.
In other words, while you only saw a 19 point increase for $1,000 another person could see more -- or even less.
@patchespuppy wrote:The credit bureaus have it rigged so you will never win.
It's not a matter of winning or losing. It's about maintaining your credit and plenty of people have good scores. Everyone is subject to the same system so you can't extrapolate such a broad, sweeping generalization using only yourself. A single data point never defines a trend. Again, stop fixating on the short term changes or you'll be constantly frustrated. This is a marathon, not a sprint.
At 750+ any gains or losses really don't mean much anyway as you're in the top bracket regardless of the specific score.
@patchespuppy wrote:
From now on I could give a darn less what my credit score is.
Could means the opposite of your intent. See also: http://grammarhome.com/images/could-care-less.jpg
Keep at it and don't be demoralized by small point fluctuations like this. Definitely read up and get a better understanding of scoring. It may not make any more sense but at least you'll have a better understanding of how you can most effectively improve your scores.
@patchespuppy wrote:
As a point I paid off that account the same day but it never reflected that...just showed I charged something.
Balances are generally reported at statement close. It really doesn't matter when you made the payment. The date your balance is reported is when your score will reflect the change. Keep in mind that it takes a few days for your lender to report and for the CRA to update your report.
+1 Infinity ! !
Excellent information. Your scores only really matter if you're applying for new credit. Day-to-day? Not so much. I WAS in the 800 club. Now I'm not. Oh well! I'm not applying for new credit, my scores are certainly acceptable where they are and if need be, I can get them back to 800. But it's not about being consumed by score fluctuations. That's going to happen, there's a reason for it, though we may not fully understand the reason. I don't understand quantum physics, but I accept it for what it is! Same thing with credit scores! Life's too short to worry about things that are out of your control.
