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Extremely confused!!!

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Established Member

Extremely confused!!!

How is this possible? I recently got an unsecured loan for $50K.

Equifax just reported the new loan on my credit report and it cost me 9 points.

Experian just reported the new loan on my credit report and is increased my score by 3 points.

I don’t understand.
Message 1 of 10
9 REPLIES 9
Established Contributor

Re: Extremely confused!!!

Are you using the myFICO subscription from here?

 FICO 8
Message 2 of 10
Regular Contributor

Re: Extremely confused!!!

Those are both minor changes. 

 

I would say say the drop is because of a new INQ and brand new account.  Which is ok

 

the increase could be because you didn’t previously have an installment loan on your file

 

no big deal either way if you just got $50k and a less than 10pt move either way 

July 31/2019. EX-712. EQ-704. TU-726
Aug 23/2019. EX-709 EQ-710 TU-731
Sept 9/2019. EX-707 EQ-714 TU-731
Message 3 of 10
Established Member

Re: Extremely confused!!!

Yes

These were the two alerts from myFICO in my fico 8 scores.
Message 4 of 10
Super Contributor

Re: Extremely confused!!!


@acblue94 wrote:

These were the two alerts from myFICO in my fico 8 scores.

Another thread where the OP wrongly assumes that the alert reason must be related to the score change. 

 

MF, please do something about this.  It's getting worse as this is probably the 5th or 6th thread in 2 days.

Message 5 of 10
Established Member

Re: Extremely confused!!!

Each alert explained why the score changed. And they were both for the same reason.

If not, that then what is it?
Message 6 of 10
Super Contributor

Re: Extremely confused!!!


@acblue94 wrote:
Each alert explained why the score changed. And they were both for the same reason.

If not, that then what is it?

Go to the alert.

Click the "Learn more" link.

You will see MyFICO's explanation that the alert and the score change are not connected.


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 7 of 10

Re: Extremely confused!!!

MyFICO doesn’t alert for score changes. They alert for activity on your report: new accounts, balance changes, new inquiries, etc.

At the same time, they give you your FICO score and indicate the change from the last Fico score they gave you. That doesn’t mean the score changed because of that event. It means that is your score at the time of that event.

Your score can change for a multitude of reasons that myFICO does not report (items aging, items deleted/removed, etc.). Your score may have changed 19 times between myFICO alerts and you don’t know because there wasn’t an alertable event.

So it’s entirely possible that the movement in score because of this new loan was the same-but you weren’t aware of other score activity because it wasn’t due to an alertable event.

The score change indicated in the alert is only the amount the score changed from the last time myFICO had an alertable event. It may or may not have anything to do with the alert.

Example: my utilization dropped to below a new threshold. The balances changing resulted in a myFICO alert - which indicated a 27 point score drop on EX. Why? Because my ex went on some campaign to get an old, closed account updated (I was AU on the account) and it was now listed on my EX report (it wasn’t before). It’s closed-so that’s not an alertable event. The score drop was because of the old account-not the improved utilization-but the utilization was the only thing myFICO would alert.

Another example: I had about 12-15 inquiries and new accounts that aged to a year over a 3 week period. Those are not alertable events. During that time, my EQ went up 14 points (from Experian monitoring). MyFICO didn’t alert to anything. I then applied for a new card - the inquiry dropped my score 4 points. MyFICO alerted to an inquiry and reported a score 10 points higher (from its previously reported number). The inquiry dropped my score a little as expected - but there was a lot of other score activity that wasn’t alertable.
Message 8 of 10
Established Member

Re: Extremely confused!!!

Thank so much for all this info. Extremely helpful.
Message 9 of 10
Super Contributor

Re: Extremely confused!!!


@acblue94 wrote:
Each alert explained why the score changed.

Alerts don't explain why the score changed.  That's the major misunderstanding that you've got here.  But, you're not alone.  There are literally hundreds, probably thousands at this point of confused members that have been mislead due to the way MF presents their alerts/score changes.  If I were you I'd voice my concerns to MF, a product you're paying for about this misleading presentation.

Message 10 of 10
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