I got a message from scorewatch saying my FICO increase by 4 points because of a change to one of my accounts. I went to check how the account had changed and it wasn't clear what had happened. Below the account, Scorewatch provided me these details:
How account changes impact your score:
The following are reasons why a change to an account can cause your FICO score to go up. (A change to an account in the opposite direction can cause your score to go down.)
* The balance on the account decreased. Generally, less debt is better for your FICO score. * The credit limit on the account was raised while the balance stayed the same. Since carrying a balance too close to the credit limit is a sign of a consumer who needs credit and cannot pay it back, a higher credit limit actually helps your FICO score. * The history of late payments or description for this account is revised to be less derogatory. For example, if a late payment on your account was mistakenly reported, correcting this on your credit report may help your score.
The account they are referring to is a Student loan that I have had forever and has rarely ever been late. It was 60 days past due maybe 2 years ago. I guess because I made a bigger payment and decreased the balance faster and it's been even longer since I had a late payment my FICO improved.
Yes to both. Late is older, balance is lower. Probably more to do with the balance going lower is my guess with out seeing all the data. But both length of time and good payments will change your score higher.
Yes, I think it might be both the balance decrease and the longer time since late payment. I think this fits in with our discussion about rapid repayment of installment loans.
Now one thing I wonder--how often does scorewatch update? Think I paid for a year of scorewatch, which updates the Equifax FICO score at each Alert-are there unlimited alerts? I forget, does someone know off hand?