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BAFFLED BY FICO SCORING

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jawbrkr
Established Contributor

BAFFLED BY FICO SCORING

As the title states, I continue to be baffled by FICO. On Janurary 12th My experian score went up 8 pts to 767. Sweet and all good. This morning, all my scores drop 10 pts. No negatives whatsoever. My util has been a constant 1% across the boards. Only thing is my AAOA went from 2 to 2.1 years and my oldest card went from 2.9 to 3yrs. What!?! Thats supposed to be a good thing. I am convinced this scoring system is bull. How can they penalize you for your accounts aging a month?



|| TU08: 811 || EQ08: 811 || EX08: 802 ||



Message 1 of 7
6 REPLIES 6
Kree
Established Contributor

Re: BAFFLED BY FICO SCORING

Your score is your risk factor. Fico divides everyone into 8 categories. Your risk factor is how likely you are to default compared to the other people in your category.

 

So with your 3 year oldest account, it is likely that you got moved to a new category. However being at the bottom of the category makes you more of a risk to lenders than the other people so your score dropped.

 

Think of it like football.   A great college team will beat all of the other college teams, often with 50 point differences. But if you pit a college team against a NFL team, the college team will do poorly.  (probably I don't know much about football.) 

Message 2 of 7
atarvuzdar
Established Contributor

Re: BAFFLED BY FICO SCORING


wrote:

As the title states, I continue to be baffled by FICO. On Janurary 12th My experian score went up 8 pts to 767. Sweet and all good. This morning, all my scores drop 10 pts. No negatives whatsoever. My util has been a constant 1% across the boards. Only thing is my AAOA went from 2 to 2.1 years and my oldest card went from 2.9 to 3yrs. What!?! Thats supposed to be a good thing. I am convinced this scoring system is bull. How can they penalize you for your accounts aging a month?


Barring things like additional accounts reporting any sort of balance which could also account for a score drop it does sound like your oldest account aging to 3 yrs may have put you in a new scorecard. As Kree mentioned, you're low man on the totem pole for the new scorecard--but it's a better scorecard and it means your scores probably can go higher than they could've gone before. Overall, it's a good thing. Just gotta wait a little time so your oldest card gets even more age so it's not considered "young" by your new scorecard's standards.

FICO 8: EQ 846 / TU 836 / EX 832
AMEX Platinum / BofA Cash Rewards Visa Sig $99,900 / Chase CSR $43,400 / Citi Double Cash $39,600 / AMEX EveryDay $30,000 / Discover It $26,000 / Gemini $25,000 / JetBlue $25,000 / Chase Freedom Unlimited $22,500
Message 3 of 7
Anonymous
Not applicable

Re: BAFFLED BY FICO SCORING

I think I’m experiencing the same thing although to a more of an extent. A new car loan for 45k reported at the same time my oldest account turned 3 years old. The result was a score drop of 35 to 50 points. One month later I’ve regained 10-15 points back. I’ve quit trying to understand Fico scoring. It was driving me crazy...

Message 4 of 7
Anonymous
Not applicable

Re: BAFFLED BY FICO SCORING

OP, is your file clean or dirty?

Message 5 of 7
arkane
Established Contributor

Re: BAFFLED BY FICO SCORING

See scores in my sig, same thing happened when I opened my SSL. Almost certainly got moved to a new scorecard and slotted in right at the very bottom, hence the precipitious EQ drop and 10 point drop with TU when it started reporting. Sucks but c'est la vie, just have to wait it out. Smiley Sad

 


wrote:

OP, is your file clean or dirty?


Is it even possible to go above 760 on a dirty file?

Active:

Closed:


6/8/20:

Message 6 of 7
Anonymous
Not applicable

Re: BAFFLED BY FICO SCORING


wrote:

I think I’m experiencing the same thing although to a more of an extent. A new car loan for 45k reported at the same time my oldest account turned 3 years old. The result was a score drop of 35 to 50 points. One month later I’ve regained 10-15 points back. I’ve quit trying to understand Fico scoring. It was driving me crazy...


If it’ll help the new account drop from your file will come back at 3, 6, and 12 months most likely. And before you know it you’ll be back where you were and even higher. And you gain points also as your installment balance goes down to help.

Message 7 of 7
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