Has FICO Scoring Changed

[Anonymous]

My first post here, and I have to echo Chrys's bafflement.  I'm a new member on myfico, so I may need to learn the ropes here - if I miss something as a newbie, polite direction is always appreciated!

My full report pulled in late July showed the three items most affecting my score negatively as high account balance, high ratio of revolving balances to limits (46%) and one new account opened 10 months ago.

Pulling the same report today, it shows my three negative items as high revolving balance (but 25% lower than before) high ratio of revolving balances to limits (28%) and the new account opened 1 year ago.  

My score went from 724 on the earlier report to 715 on the later one.  In the meantime creditors have started to reduce my available credit line as my score dropped - which I know can/will leave me in worse shape than before I paid off the other accounts!  

I haven't missed a payment or been late in the history of my report.  Other than paying off several thousand dollars, some balances were transferred between accounts to try to smooth things out.  Otherwise no changes.   

Any thoughts on why the score would be lower?  

[llecs]

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TallDave wrote:

My first post here, and I have to echo Chrys's bafflement.  I'm a new member on myfico, so I may need to learn the ropes here - if I miss something as a newbie, polite direction is always appreciated!

My full report pulled in late July showed the three items most affecting my score negatively as high account balance, high ratio of revolving balances to limits (46%) and one new account opened 10 months ago.

Pulling the same report today, it shows my three negative items as high revolving balance (but 25% lower than before) high ratio of revolving balances to limits (28%) and the new account opened 1 year ago.  

My score went from 724 on the earlier report to 715 on the later one.  In the meantime creditors have started to reduce my available credit line as my score dropped - which I know can/will leave me in worse shape than before I paid off the other accounts!  

I haven't missed a payment or been late in the history of my report.  Other than paying off several thousand dollars, some balances were transferred between accounts to try to smooth things out.  Otherwise no changes.   

Any thoughts on why the score would be lower?  

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Which credit reporting agency is this and where did you get your score?

[Anonymous]

Equifax, and they were pulled via my Score Watch subscription on MyFico.  

[Anonymous]

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@Anonymous wrote:

Pulling the same report today, it shows my three negative items as high revolving balance (but 25% lower than before) high ratio of revolving balances to limits (28%) and the new account opened 1 year ago.  

My score went from 724 on the earlier report to 715 on the later one.  In the meantime creditors have started to reduce my available credit line as my score dropped - which I know can/will leave me in worse shape than before I paid off the other accounts!  

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Welcome to the forums!

Not based on that score drop did they CLD. But perhaps quite possibly due to your continuing high utilization they did. CC issuers do not like high UTIL these days at all!

Don't focus on the cited factors. Go through those Score Watch reports page by page. The difference lies there.

[llecs]

TallDave, thanks. Did you have more CCs reporting a balance on the 2nd report vs. the first? Even with a drop in util, if you had extra CCs reporting balances you might see a ding in score.

Look also in your EQ reports. Look at the positive and negative factors in both reports and look to see if any of those changed.

[Jazzzy]

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@Anonymous wrote:

My first post here, and I have to echo Chrys's bafflement.  I'm a new member on myfico, so I may need to learn the ropes here - if I miss something as a newbie, polite direction is always appreciated!

My full report pulled in late July showed the three items most affecting my score negatively as high account balance, high ratio of revolving balances to limits (46%) and one new account opened 10 months ago.

Pulling the same report today, it shows my three negative items as high revolving balance (but 25% lower than before) high ratio of revolving balances to limits (28%) and the new account opened 1 year ago.  

My score went from 724 on the earlier report to 715 on the later one.  In the meantime creditors have started to reduce my available credit line as my score dropped - which I know can/will leave me in worse shape than before I paid off the other accounts!  

I haven't missed a payment or been late in the history of my report.  Other than paying off several thousand dollars, some balances were transferred between accounts to try to smooth things out.  Otherwise no changes.   

Any thoughts on why the score would be lower?  

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I agree that this score drop likely did not spur the cc companies into lowering your available credit. As said before, cc companies are looking at high utility as a risk factor.

A question for everyone based on the above scenario: Does anyone out there think that their credit lines were decreased based on making a balance transfer? I'm wondering if this has become a major red flag for the cc companies.

To TallDave:  Did your cc company give you their reasoning for reducing your limit? Some companies are lowering limits based simply on not using the card. Dinged if you use it too much...dinged if you don't use it enough.

[llecs]

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LynetteM wrote:

A question for everyone based on the above scenario: Does anyone out there think that their credit lines were decreased based on making a balance transfer? I'm wondering if this has become a major red flag for the cc companies.

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CLDs are happening to everyone. It tends to happen most to people who carry large balances over a period of time, those who are late, or those who tend to max out their CCs. Though CLDs have happened to folks in here with 800+ FICO scores, those who had less than 1% reporting, and to those who had a seemingly long history with no issues. It is happening across the board.

I received on CLD with Bloomingdales. The CC went from $2300 to $200. The reason they gave was adverse action on EX. Now I am 100% positive nothing happened on EX as I pull daily, but in talking to a CSR I learned that it was basically an excuse with no logic or reasoning behind it. In short, don't trust their reasons as to why you experience an AA. BTW, in talking to them and asking the right questions, they admitted that no CLD should have happened and they bumped it back to $1500. I'll take what I can get.

[Anonymous]

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@LynetteM wrote:

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@Anonymous wrote:

My first post here, and I have to echo Chrys's bafflement.  I'm a new member on myfico, so I may need to learn the ropes here - if I miss something as a newbie, polite direction is always appreciated!

My full report pulled in late July showed the three items most affecting my score negatively as high account balance, high ratio of revolving balances to limits (46%) and one new account opened 10 months ago.

Pulling the same report today, it shows my three negative items as high revolving balance (but 25% lower than before) high ratio of revolving balances to limits (28%) and the new account opened 1 year ago.  

My score went from 724 on the earlier report to 715 on the later one.  In the meantime creditors have started to reduce my available credit line as my score dropped - which I know can/will leave me in worse shape than before I paid off the other accounts!  

I haven't missed a payment or been late in the history of my report.  Other than paying off several thousand dollars, some balances were transferred between accounts to try to smooth things out.  Otherwise no changes.   

Any thoughts on why the score would be lower?  

---

I agree that this score drop likely did not spur the cc companies into lowering your available credit. As said before, cc companies are looking at high utility as a risk factor.

A question for everyone based on the above scenario: Does anyone out there think that their credit lines were decreased based on making a balance transfer? I'm wondering if this has become a major red flag for the cc companies.

To TallDave:  Did your cc company give you their reasoning for reducing your limit? Some companies are lowering limits based simply on not using the card. Dinged if you use it too much...dinged if you don't use it enough.

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Absolutely not/no!

[Anonymous]

cwcd: thanks for the welcome!   And now for the debate... 

I understand it could be coincidence, however:   I made a balance transfer using a Citi card to significantly pay down a Chase card and a Cap One card.  Within 10 days, both Chase and Cap One lowered my CL to just barely above the remaining balances.  That was the first event of this cascade of "adjustments."

I have a second Chase card that was not involved in the transfers, which to date has ben unaffected.  I also noted with irony that Chase immediately sent me balance transfer checks in case I wanted to use my remaining $100 or so to pay off a higher interest card.  (!)   

Now perhaps answering my own question earlier, that means I went from two cards at around 60% utilization and one with zero, to two cards with 95% utilization and one with about 75%, due to the reduced lines.   

As I said, it could be pure coincidence, but the almost immediate reaction of those two cards to the payoff, and the non-action on another card from the same company have to make me at least keep open the possibility that balance transfers (now) create a red flag.  

And thanks to everyone for the support and advice - even in a debate I value understanding all points of view very much! 

[Jazzzy]

Thanks for the responses to my question on balance transfers. I wondered if FICO was not liking the use of balance transfers, which basically just moves debt around...even though that debt is often moved for sound financial reasons.

Every cc company seems to be pushing BTs these days, and I wondered if the cc companies were giving with one hand and FICO was taking away with the other.

Edit: I wrote this before reading the above post....humm.

Message Edited by LynetteM on 09-06-2009 10:52 AM