EXCEPTIONAL amt of debt?

[Anonymous]

heres the key factors from experian, generated 1 hour before i got my new visa card:

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1. length of time accounts have been established

2. lack of recent installment loan information

3. length of time revolving accounts have been established

4. too few accounts (thin file)

5. too many inqs in past 12mo

so reason 4 was no longer too many accts with balances even before i got the new card. azeo was all that was needed to fix it, at least on this CRA. i usually get my 4 reasons from TU and maybe they differ. but i would swear i was getting that reason even when i did azeo with just 2 cards on TU.

they think i don't have enough accts? hah! i will see what they say once i have 4 reporting. perhaps they expect 5, since that seems to be the criteria at fico for no longer a thin file.

and i got a bonus 5th reason for too many inqs! very nice. i wish i had a way to see 5 reason codes all the time like this.

[Anonymous]

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@Anonymous wrote:

10/21 was mastercard 8mo, discover 5mo. the mastercard had a balance of $18 the other was $0. util was 1% individual and aggregate, and this was with 2 inqs.

how much has your loan helped in each score while its open vs after it closed, compared to this?

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I don't have any full EX reports with the SSL/credit builder loan at 17% remaining balance, so all I can tell is how much of a boost I got on the EX 8 score. (A free Discover Scorecard EX F8 score on December 4th of 687.)

My loan reported closed along with the opening of 2 revolving accounts at the same time in January.

Here's a table showing the changes from December to January:

• 12/23/18 - Only 1 account on file, the SSL at 8.47% remaining balance. (The boost zone under 9%.)
• 12/31/18 - Only 1 account on file, the SSL at 8.47% remaining balance, but with my first inquiry at EX. (Citi Visa card.)
• 1/18/19 - 3 accounts on file: 1 closed SSL, 1 Mastercard, 1 Visa. Aggregate util 1%. MC at 1%, Visa at $0. (AZEO)

	12/23/18	Δ	12/31/18	Δ	1/18/19
EX FICO 8	748	-19	729	-30	699
EX FICO AUTO 8	726	-21	705	-22	683
EX FICO Bankcard 8	723	-21	702	+1	703
EX FICO 2	691	-16	675	+52	727
EX FICO 3	713	-30	683	+29	712
EX FICO Auto 2	657	-15	642	+61	703
EX FICO Bankcard 2	675	-17	658	+74	732

[Anonymous]

you gained 52pts on fico2 because of your installment loan being paid off and closed? wow! i know opening the cards doesn't make that one go up, they make it go down. so you would of had even more points on that score if you didn't open the 2 cards.

[Anonymous]

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@Anonymous wrote:

you gained 52pts on fico2 because of your installment loan being paid off and closed? wow! i know opening the cards doesn't make that one go up, they make it go down. so you would of had even more points on that score if you didn't open the 2 cards.

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I really don't know if there's any gain on EX 2 from closing the loan, because of the revolving accounts showing as open for the first time on the same report.

Here's some evidence that opening at least one revolving account helped that EX 2 score:

[12/31/18] EX 2 675: Short credit history, No recent activity on credit cards, No recent activity on revolving accounts, Seeking credit

[01/18/19] EX 2 727: Short credit history, Short revolving history, Too many accounts with balances, Recently opened too many new credit accounts

(Note the 'too many accounts with balances', even with only 1 card reporting a $40 balance with the other at $0.)

I bet your first card caused EX 2 to jump a little as well, but you couldn't see it because you wouldn't have had a score then.

[Revelate]

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@Anonymous wrote:

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@Anonymous wrote:

you gained 52pts on fico2 because of your installment loan being paid off and closed? wow! i know opening the cards doesn't make that one go up, they make it go down. so you would of had even more points on that score if you didn't open the 2 cards.

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I really don't know if there's any gain on EX 2 from closing the loan, because of the revolving accounts showing as open for the first time on the same report.

Here's some evidence that opening at least one revolving account helped that EX 2 score:

[12/31/18] EX 2 675: Short credit history, No recent activity on credit cards, No recent activity on revolving accounts, Seeking credit

[01/18/19] EX 2 727: Short credit history, Short revolving history, Too many accounts with balances, Recently opened too many new credit accounts

(Note the 'too many accounts with balances', even with only 1 card reporting a $40 balance with the other at $0.)

I bet your first card caused EX 2 to jump a little as well, but you couldn't see it because you wouldn't have had a score then.

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@Anonymous was that "too many accounts with balances" just with 2 revolvers and 1 balance, or 2 revolvers + 1 open installment loan = 2 balances?

[Anonymous]

2 revolving accounts, 1 closed installment loan. 3 total accounts on file.

1 revolving account with $40 balance, the other at $0.

[Anonymous]

Creds The fluff statements: very good, exceptional, good are simply guides and are meaningless when it comes to scoring. Whether you want to accept this or not it is the truth. Again they are motivated to get you to get more cards and loans so they can make money. They have an agenda.

The negative reason codes do point to reasons that you are not earning more points. They come from the same FICO algorithm that determines your score. They are valid data to use to increase your score.

No, adding a store card or any other card is not gonna take away the no loan negative reason code. As previously explained in different ways, a loan can affect more than one section of the FICO pie.

One open or closed loan satisfies credit mix and gives you the maximum points for having a loan on your credit report as far as credit mix is concerned.

Once you have a loan you owe money on it. The amount of money you owe falls under the amounts owed section. Once you pay it down below 8.9%, there is a nice score boost. Once you pay it off, that score boost disappears. (Assuming you don’t have other loans that interfere.) You do not lose the points you earned for satisfying the Credit mix portion because you still have a closed loan on your CR.

Chasing and trying to satisfy fluff statements is an exercise in futility. Attempting to address the issues raised by your negative reasons codes can benefit your score.

[Anonymous]

By the way that’s the whole reason for the SSL technique. You open up a loan to pay it down under 8.9%, so that you can get that score boost. And the idea is to keep it open as long as you can, so that you can perpetuate that higher score.

I have personally tested whether a closed loan still satisfies the credit mix portion and it does.

When I closed the loan with a high B/L I lost no points and when it re-opened after refinancing I gained no points. Why? Because the B/L was over 99% on both, and my credit mix portion was already satisfied before either one of them.

If you would like to increase your score and you have no loan open or closed on your file, use the SSL technique and watch your score rise.

You will get points for credit mix and once you pay it down for the amount owed sector.

And yes you typically do get a few points for your first three cards. There’s a negative reason statement: too few bank cards, that addresses it, although it may not apply to all flavors.

[randomguy1]

^^ what are the prefered lenders these days for a SSL? (Not NavyFed eligble).

[Anonymous]

Some credit unions work but YMMV. I would suggest you go to the thread for that and read the latest information on what financial institutions are working.