FICO Score Changes

[pammifflin]

Why did my FICO score? Decrease when I paid $265,000 of debt off? every time I would go on a tool to check my cycle score. It said my debt income ratio was too high. I called FICO today and they tell me they don't even use that as a measurement. if you don't use that as a measurement, no one should use it as a measurement. 

[Thomas_Thumb]

No credit scoring models use DTI in risk assessment. Income is NOT allowed as a factor per legislative decree. That would introduce a bias.

DTI is used by lenders to determine capacity to pay back loans and establish limits on loan amounts and revolving credit limits. The debt component is the total of monthly payment obligations, not total outstanding debt. Credit score is an indicator of non payment risk irrespective of income/wealth. 

[FicoMike0]

Congratulations!

Paying off $265,000 is a huge accomplishment. 

If you want advice about credit scores, you'll have to post a lot of details, accounts, balances, limits, any baddies. There are experts like @Thomas_Thumb  here who really understand credit scores. As he mentioned, dti is not part of your credit score, but is certainly used in lending decisions.

[BrutalBodyShots]

Hey there @pammifflin! DTI is not a FICO scoring factor, so lowering your DTI would have no impact on your FICO scores. Which particular FICO score are you referencing? What else changed with your credit profile? Did you have any other open loans, or was this one that you closed your only open one? Without knowing more about your credit profile it's difficult to say which factor(s) may have impacted your score change.