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score increase

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Anonymous
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score increase

I used the analyzer and it said if I increase my debt by $200 my score would increase by 9 points. Does this sound correct? I thought if you decrease you debt your score would go up.
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jackg
Established Contributor

Re: score increase

Welcome to the unexplainable world of FICO scoring. By the way, I agree with your assumption that increased utilization should decrease your score, generally speaking. However, as you are experiencing, when you think you know something about FICO scoring they mess with your head.

 

In your case I can take a stab at why your score went up:

1. The $200 debt may be totally insignificant as it relates to the total amount of credit you have available. Say that you have $100,000 available credit. That $200 means nothing, it won't even register.

2. When was the last time you used the credit card? Remember that FICO likes it when you use credit if you have'nt done so for a couple months. I suspect that if you pulled your FICO scores today you would see a comment on the summary page that has the scales of just as a visual aid that is a positive and says something like, "You've shown recent use of credit".

 

In summary all I can say is making specific predictions for the outcome of a specific action will only make you feel like a fool. It happens to me almost daily.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
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