FICO: scores not dropping

MattH · ‎08-31-2009

A new study from Minneapolis-based credit score developer FICO finds that widespread credit limit cuts and account closures haven't punished consumer credit scores. Reductions in credit lines not triggered by increased risk hurt the scores of only 8.5 million consumers, typically by less than 20 points.

About 33 million credit cardholders saw their credit lines cut between April 2008 and April 2009. Most -- about 24 million -- didn't have any recent negative items in their credit reports that triggered the decrease. This group generally managed credit wisely, and had low account balances, a long credit history and few missed payments.

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it

jackg · ‎09-01-2009

MattH,

I don't know about you but my common sense tells me that it's a bunch of BS. How many foreclosures have taken place in the last 18 months? Same for BK's. They may have data to support their statement but it just does'nt feel right.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739

Anonymous · ‎09-03-2009

It also does not foot with several of Mark Greene's recent public comments.

Anonymous · ‎09-03-2009

I read that article carefully and no where in it did it say average scores haven't dropped. It did say that scores haven't dropped for many DUE TO account closures and decreased limits. I think it is interesting the excluded BK, foreclosures, and short sales from the discussion. Even if scores were impacted less than 20 points on average (for those affected by decreased limits), this factor alone drove down 8.5 million credit scores. I would imagine there is a similar number impacted much more greatly by BK, foreclosures, and short sales.

AndySoCal · ‎09-03-2009

From my reading of the article, the foucus of the aritcle was credit scores as related to credit cards. The article was not dealing with the entire spectrum of credit and scores.

FIC Scores XPN v8 808 V2 831 (SDFCU) TUC V 8 803 07/25 EFX Bankcard v8 822 EFX FIC0 v8 800 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 11,100 State Dept. FCU 06/2023 25,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25
Banking: Lafayette FCU Fortera FCU State Department FCU Pelican State CU Redstone FCU Hughes FCU Commonwealth FCU
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank Comerica Bank BMO

Anonymous · ‎09-04-2009

Correct link to article:

http://www.bankrate.com/blogs/credit-cards/fico-scores-not-dropping.aspx

Interesting this here is that 3/4's of CLD's were inflicted on cardholders for reasons other that recent reporting negatives.