Experian FICO 9 147 Point Increase in 30 days!

[sarge12]

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@Anonymous wrote:

I think perhaps you're considering something like a CFA, which can adversely impact Fico scores and may be considered less favorable by some compared to a regular loan.  I don't think anyone would care about seeing a Lending Tree loan on a CR, so long as the payment history was perfect since that's always going to be paramount.

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The thing about this that is very surprising, is that the total debt amount did not go down, and it just transferred high utilization on the credit cards to 100% utilizataion on an installment loan. I just can't see anything that could have caused such a dramatic score increase. For some of us that have been on these forums for a long time, it causes heartburn for us in trying to predict what effect that action will have on scores. The consolidation loans we have seen before have never caused that much effect on scores, at least not that I remember. Due to that, I consider this as more of an outlier which we can't really expect to be repeatable. I would have a hard time seeing credit card utilization even having almost 150 possible points available comparing 100% utilization to 4% on one card. The only thing that I even see remotely unusual is the one card being that much above the credit limit. That is just a lot of points to pick up that quickly.

[sarge12]

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@Anonymous wrote:

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@kah-pas wrote:

I was under the impression that a loan from the Landing Tree is not beeing looked favorably at by the credit agencies? Was I assuming wrong?

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I'm not understanding your question.  Why would it be unfavorable?  Due to the loan itself?  The lender?  Something else?

Also, the credit reporting agencies don't look at anything favorably or unfavorably, they simply compile/provide data.  Lenders then use that data when they view your credit report in making their credit decisions... so are you saying you think a lender would look at a loan unfavorably and if so, why?

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The only type of debt I have ever seen that the mere existance of the account costs points on some versions of fico scores are CFA's. I agree even that is not looked at by the CRA's, but can cost points on some scores. I think it is ridiculous that it does so even with a perfect payment history, but explanations of some fico reason codes does show the presence of a CFA account as a negative. The really hard part is some lenders you would not think were CFA's...are...including Honda Financial. It may be due to some obscure law that might prevent manufacturer owned banks. That is only a guess, and not due to having any insight that is the case. I do know that banks a much more regulated than finance companies. The fact that we keep having to bail out banks, might warrant the regulation, but in 2008 at least, they were poorly regulated.

[Anonymous]

Wow, congrats on the huge score increase!

Just a thought, but are you thinking about refinancing the Lending Tree loan now that your scores have jumped so much?

[atarvuzdar]

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@Anonymous wrote:

I'm a bit puzzled by the magnitude of the gain, as in going from 42% aggregate utilization to 4% aggregate utilization only 2 thresholds were crossed at 28.9% and 8.9%.  I would think most would see maybe 30-40 points from those aggregate thresholds being crossed, then maybe another 10 points for the number of accounts with balances reductions and maybe another 10 points for reducing the ding related to highest individual utilization card.  Anyway, my guess would have been 50-60 points gained, which is clearly no where in the ballpark of what was realized by the OP.  Am I overlooking something obvious here?

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I'm not so surprised by the gain. Had similar (but not 147 points!) happen to me in the Fall of 2017 when DH and I took out a cash out mortgage. Paid off nearly $40K in CC debt (47-48% Uti down to <1%). Scores increased 95-103 points across the 3 bureaus for me back then. A big part of the equation was going from nearly all CCs with accounts to hitting the 1:3 ratio. I'm sure the same happened for OP.

OP wtg! The challenge now is making sure those CCs stay under control. Good luck!

[nyyankees877]

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@Anonymous wrote:

Wow, congrats on the huge score increase!

Just a thought, but are you thinking about refinancing the Lending Tree loan now that your scores have jumped so much?

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I already got the lowest rate for Lending Club - A1 rating and it's not too bad.

[nyyankees877]

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@nyyankees877 wrote:

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@NRB525 wrote:

Very impressive increase in score. 

By any chance do you have a list of Reason Codes for the before and after scores?

The over limit situation is interesting because we don’t see that, like, ever. So with no data points, uncharted territory. I liken it to closed accounts: There is quite a bit of speculation and misunderstanding about how closed accounts impact score, because not many people have closed accounts, with balances, and do not also have the necessary time to adjust their file while a closed account is reporting to measure the impact on score. In most cases, the APR on the closed balance is so onerous that the first priority is paying it off, not playing with it.  

And just to be clear, you see that new loan in your total reported balances that are factored in to the 800 score?

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Yes. the 40K lending club loan has been added in the installment debt equation for the TU score. 

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Updated TU Fico 8 score from BarclayCard