cancel
Showing results for 
Search instead for 
Did you mean: 

Fico score went down...situaton unchanged

tag
FICOnewbie2008
New Member

Fico score went down...situaton unchanged

This is my first post, so please forgive lack of posting knowledge or etiquette.  I am in my late 40s and checked my FICO scores for the first time ever a little over a year ago.  In 08/08 my scores were: EXP 822, EQ 803, TU 813.  My credit situation is no different now than last year.  Last year's reports gave no negative factors which could be hurting my report.  This year, (just a few minutes ago), my FICO scores are EXP (not available), EQ 787, and TU 791.  I have no debt and have never missed or been late on a payment.  I always pay in full each month and have never carried a balance since using credit, (over 25 years now).  Naturally I was surprised to see that my scores had actually dropped from last year to this year. One negative factor appeared on each report---each one different.  EQ says my negative factor is that I show no open revolving accounts, but I always use my credit card every month and always pay in full at end of cycle. TU's negative factor says I currently owe $411 on one card, (which is not uncommon), but I paid that in full, and it is posted as such on my latest statement.  Would anyone please help me to understand this FICO enigma?  I will greatly appreciate any helpful feedback!

 

Thanks,

FICOnewbie2008

Message 1 of 12
11 REPLIES 11
haulingthescoreup
Moderator Emerita

Re: Fico score went down...situaton unchanged

Hi, welcome to the forums!

The TU comment is referring to the fact that the $411 balance was reported to the credit bureaus, even though you did pay it in full before the due date.

Lenders decided to report the balance that shows on statements (in most cases). So if you're like any normal consumer, waiting for the statement to post/ turn up in your mailbox, and then pay, this makes it look as though you owe money. If they would report the balance as of your due date (after you'd paid), this wouldn't be an issue. So if you want to cheer up TU, the trick would be to pay all your CC's off before the statement posts, so that they report $0. (With your high scores, TU won't penalize you for having all account report $0.)

As for the EQ report, was that literally what the message said? Are all your accounts from credit unions or local banks, by any chance? And did that $411 balance also show on EQ?

If you can copy/paste screen 2 from your EQ report, with the positives and negatives, we might be able to untangle things a bit.

Cheer up --when you have scores on either side of 800, it takes very little to cause major score shifts. It's life at the far edge of the bell-shaped curve.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 2 of 12
FICOnewbie2008
New Member

Re: Fico score went down...situaton unchanged

Hello hauling, and thanks for your post!  I really appreciate any help with understanding and learning more about FICO scores.  To answer your question regarding the EQ negative affecting my score, yes it literally says, "There is no recent activity on your revolving accounts."  (Pasted below is page 2 of EQ report).  To answer another question; No, none of my credit cards are through credit unions or local banks.  They are all through large, well-known investment type banks.  Also, the $411 balance does show on both EQ and TU reports.

 

I typically do spend a couple hundred dollars per month on average with credit cards, but I always pay balance in full at end of period.  TU says, "What's hurting your FICO score is, 'The balances on your non-mortgage credit accounts are too high.'"  What is puzzling to me is that I have never carried a balance.  In fact, one of the positives TU gave me was, "You've limited the use of your available credit."  "Ratio of your revolving balances to your credit limits is 3%."  These positive and negative points seem to contradict each other.  Don't you think?  Anyway, below is page 2 of EQ report.  Thanks for taking a look at it and also for any feedback you may be able to give me.

 

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

Please note that a negative factor can be provided even if you are better than the national average of FICO® high achievers on that factor. In all likelihood, this means that your FICO® score is already quite high. The fact that you are still receiving a negative factor means that there is still some room to work on that factor.

  1. There is no recent activity on your revolving accounts.

    Your credit report shows no open revolving accounts [?] or it does not report recent information (such as balance or credit limit) about any of your revolving accounts. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.

    What to do about this: You might want to show new activity on any credit card. If you already have a credit card, you can do this by using it and paying it back on time. If you don't have a credit card, consider opening one. However, be aware that the credit inquiry associated with applying for a new card may lower your FICO score in the short term.

     

What’s helping your FICO® score

The positive factors listed here reflect areas of your credit behavior that are helping your FICO® score. You should continue the good practices listed here. These factors are listed in order of their impact to your score – the first has the greatest positive impact and the last has the least.

  1. You have no missed payments on your credit accounts.

    Number of your accounts with a missed payment
    0 accountsAbout 93% of FICO High Achievers [?] have no missed payments at all. But of those who do, the missed payment happened nearly 4 years ago, on average.

    You helped your FICO score by paying your bills on time. Staying current with your bills will continue to help your score.

  2. You have an established credit history.

    Your oldest account was opened
    23 Years, 1 Month agoFICO High Achievers [?] opened their oldest account 19 years ago, on average. Average age of your accounts
    15 yearsMost FICO High Achievers [?] have an average age of accounts between 6 and 12 years.

    Your FICO score measures the age of your oldest account and the average age of your accounts. Your FICO score was helped because you have a relatively long credit history and you haven't recently opened many new accounts.

  3. You're not actively looking for credit.

    Your applications for credit in the past year
    0 inquiriesAbout 72% of FICO High Achievers [?] did not apply for credit in the past year. Of those that did, about 20% applied for credit just once.

    You've helped your FICO score by not actively seeking credit. Each time you apply for credit, a credit inquiry is performed. Your credit report shows no recent credit inquiries, which indicates that you are not currently looking for credit. People who are actively seeking credit pose more of a risk to lenders than those who are not.

  4. You've done a good job of keeping low balances on your revolving accounts.

    Total owed on your revolving accounts
    $411FICO High Achievers [?] owe an average of $2,300 on revolving accounts such as credit cards and department store cards.

    Your FICO score evaluates how much you owe on your revolving accounts [?] (such as credit cards). Your FICO score was helped because you've kept the balances on your revolving accounts low.

 

     

Message 3 of 12
psychic
Moderator Emeritus

Re: Fico score went down...situaton unchanged

Hi FICOnewbie2008!

 

Can you provide us with a little bit more information about the account that had the $411 balance?  Can you tell us what bank issued that card?  Is it by any chance a Visa Signature or World MasterCard? 

 

Thank you!

EQ 814 / TU 815 / EX 842
Message 4 of 12
haulingthescoreup
Moderator Emerita

Re: Fico score went down...situaton unchanged

Ahh, great question! I always forget about those pesky Signatures and World cards.

FICOnewbie2008, to add to psychic's question, not just on the card with the $411 balance, do you have any Visa Signature or MC World cards, issued from any bank? There is an ongoing problem with these cards being ignored for certain parts of scoring, as they allow you to charge over your limit.

That might even be the problem with your EQ negative, saying that you have no activity. If all your activity is on Signatures or Worlds, it might be flying under the radar, so to speak.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 12
creditwherecreditisdue
Senior Contributor

Re: Fico score went down...situaton unchanged

There also could be dormant TL's and AAoA could have decreased due to old TL's having fallen off. No CBR is ever the same over a year later and the devil's in the details. The good news is you're still a FICO High Achiever (FICO > 760) and that's all that matters.

 

The number of negative reasons reporting on your FICO score reports is based on your score level and not how many negative reasons there are. There are always 4 reasons under the covers but FICO score reports show 4, 3, 2, 1 or none depending on how high you score is. When your score was > 800 you got no reasons reported. Now you get one reason. When you have very high scores many times the reasons reported are pretty much gibberish.

Message 6 of 12
Jazzzy
Valued Contributor

Re: Fico score went down...situaton unchanged


@creditwherecreditisdue wrote:

There also could be dormant TL's and AAoA could have decreased due to old TL's having fallen off. No CBR is ever the same over a year later and the devil's in the details. The good news is you're still a FICO High Achiever (FICO > 760) and that's all that matters.

 

The number of negative reasons reporting on your FICO score reports is based on your score level and not how many negative reasons there are. There are always 4 reasons under the covers but FICO score reports show 4, 3, 2, 1 or none depending on how high you score is. When your score was > 800 you got no reasons reported. Now you get one reason. When you have very high scores many times the reasons reported are pretty much gibberish.


I agree. I have learned to pretty much ignore the reasons given when I pull from myFICO. One time I will be told I made too much use of revolving credit when I have used 8%. Another time I'll be told I'm doing great with a percentage higher than that. Sorry to say, you have to take the "reasons" with a grain of salt.

 

The difference will be found in comparing the details between last year's reports and the current ones. The reasons given are a place to start looking, but they may be valid or they may not.

Message 7 of 12
creditwherecreditisdue
Senior Contributor

Re: Fico score went down...situaton unchanged

This only applies to High Achievers. If you have more moderate FICO scores the reasons are generally rational.
Message 8 of 12
haulingthescoreup
Moderator Emerita

Re: Fico score went down...situaton unchanged


creditwherecreditisdue wrote:
This only applies to High Achievers. If you have more moderate FICO scores the reasons are generally rational.

Boy, I dunno. I got some "reasons" back in my mid-600's days that made me jump out of my skin, including that I might have a new late. (It was an increase in util, as I recall.)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 9 of 12
FICOnewbie2008
New Member

Re: Fico score went down...situaton unchanged

Thanks for all the help, everyone!  It's much appreciated!

 

As to the $411 balance, it is on a Capital One Visa, (not sure if it's a signature card---I remember doing something a few years ago with this card, but as I recall it was just to make the card "Visa Verified.")  I don't recall any of my cards ever being signature cards or world cards.  I've had them all for many years, so all of my cards are just plain Jane cards on the larger banks like CITI and COF.

 

Thanks again,

FICOnewbie2008

Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.