Credit Bucket to Bucket

[Anonymous]

On the contrary Bop, people are stating that their scores are actually lowered when they migrate to a higher bucket/tier/scoring catagory. Kind of like starting over, but not really.

[haulingthescoreup]

If you're rebucketed because you have improved something or other, or some type of credit is aging, or baddies are aging or falling off, then your scores are bound to drop initially, because you're now being compared with people with a better credit picture, and you'll have to iron your slacks and shine your shoes in order to fit in with them.

But I keep wondering, if bucket assignment is done by credit age/ behavior/ etc., then logically some people ought to be moving downwards, because they've recently goobered something up and they're demoted. (John060675 was asking this last night, too.) If so, then their scores would be stable or even go up, because they might be in less bad shape than their new peers. How weird is that??? Although I guess they might not be willing to announce it here!

[Anonymous]

I finally got a scorewatch update and my fico went down 3 points.  My message indicated:

* You moved from one category of credit users to another as time passed. For example, you may have transitioned from the category "consumers with a new credit history" to the category "consumers with a two- to five-year credit history". As a result, your credit report is evaluated differently, causing a slight change in your score. The good news is that moving between categories like this usually offers you the potential to reach a higher FICO score in the future.

My question is:

What kind of timeframe is the "future".  I'm interested because I will be needing to apply for a mortgage sometime during 2008.  My dad and I own my home jointly but he applied for a 25K mortgage against it and even though I'm the one making the payments, I'm not getting the benefit of the credit history behind it.  His FICO's are in the 800's - I'm now down to 651 with this new bucket.  Because of his age and health, we think it might be better for me to get a mortgage in my name to pay off his mortgage so that in the event of something happening to him, my home will be protected from any estate stuff coming down the road.

[llecs]

I too am confused about bucketing. Back to the org. question: Have people seen their scores improve with time back to their org. score?

From what I am reading, in comparison, it's like school/university. Some of us had the rare instructor who would grade on a weighted scale. You may score an 80% but actually receive an "A" because you have the highest grade in your class. If the same is applied to FICO scoring, then time has little to do with it in comparison on how well others are doing. Am I on track here?

[Anonymous]

research tells me that FICO07 officially has 10 segmentations and FICO08 will have 12 segmentations.

The 2 additional segmentations will be in the fair/poor increasing this number from 2 to 4.

This means that there are 8 segmentations for the Good/Very good/Excellent groupings.

Applying much LOGIC beyond this would be somewhat futile.

I will submit the rest of this post to the Admin before posting-

[Anonymous]

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llecs wrote:

I too am confused about bucketing. Back to the org. question: Have people seen their scores improve with time back to their org. score?

From what I am reading, in comparison, it's like school/university. Some of us had the rare instructor who would grade on a weighted scale. You may score an 80% but actually receive an "A" because you have the highest grade in your class. If the same is applied to FICO scoring, then time has little to do with it in comparison on how well others are doing. Am I on track here?

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This is a good way of explaining it.  Time matters because it will always affect your score no matter what bucket you are in -- age of oldest account, time since baddie, time since last app, length of total credit history, etc.  But the bucket issue isn't just time-related -- it depends how the other players in the bucket act.  Keep your nose clean and you'll move up beyond those that may fall off the wagon.

[Anonymous]

Timothy, can you share with us what those 12 segments are for FICO08?

I've spent the past hour googling, and searching the threads here, and if it is posted I cannot find it. Thanks

[Anonymous]

No specifics to post just yet-

4 Poor/not good Buckets and 8 Good, Very good, Excellent ones

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@Anonymous wrote:
Timothy, can you share with us what those 12 segments are for FICO08?

I've spent the past hour googling, and searching the threads here, and if it is posted I cannot find it. Thanks

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[Anonymous]

Okies, ty. I'm sure most of us are anxious to know more about it when it comes out, as I've heard on creditboard.com that it will effect everyone's scores...not just the AU's.

With that said, when the time comes, I would like to suggest that a sticky at top of page be devoted to that topic....when the time comes, and the powers to be think it justified. Just a thought.

Message Edited by Sylviatob on 10-22-2007 10:21 AM

[haulingthescoreup]

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@Anonymous wrote:

With that said, when the time comes, I would like to suggest that a sticky at top of page be devoted to that topic....when the time comes, and the powers to be think it justified. Just a thought.

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Excellent idea! I've got a couple of threads that need to be dragged over there...