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Hi:
I just purchased all three (major credit reports) and noticed that in all cases my scores were lower by 40 to 90 points. This despite the fact that nothing adverse has happened in my conditions and in fact, if anything, my credit reliance has lessened and my payments are always prompt (never late).
Can anyone tell me what is going on? Is it a matter of the world going upside down and the agencies now scoring on a stricter criteria or is it just another fantastic foul up? What can be done about this?
Regards
That is odd, when did the late payment appear on your reports?
Let's start here, on your reports on the second page it should list what's hurting and what's helping your FICO score, can you tell us what you have there for each?
Hopefully some other folks can chime in with some explanations too.
Hey Kevork, and welcome to the forums!
To answer your last question first, no, FICO scoring itself has not become stricter, but the standards that lenders use (both in terms of requiring a higher score and other factors) certainly have due to the current economic situation.
As to what is going on with your scores, it's hard to tell from what you provided, so maybe you'll allow us some questions to get a little more detail. First, where did you pull your scores? Did both sets (the "base line" if you will and the latest ones) come from this site? If not, you have one or more FAKOs, fake FICOS, that are not based on the true FICO scoring formula. These scores are sold by the individual bureaus and do tend to react to events (or non-events) randomly.
If you did get your scores from here (or just to see) what changes have you seen in your report in terms of average age of accounts (open any new accounts lately? have an old closed account fall off after 10 years)? In terms of utilization (had one card report a high balance this month on the statement, even if you paid it all off before the bill)? Did you, this month, suddenly report a balance on ALL of your cards or NONE of your cards? All of those chances can cause a decrease in score. Finally, any collections, charge-offs or other derogatory reports will affect your score, no matter how small the amount.
Finally, just so you don't feel like all I left you with was the Spanish Inquisition, here's a couple of resources for you to help you understand where your score comes from and why it might change: Credit Scoring 101 and the myFICO PDF Booklet
Hope that helps!
Hi SCF:
First, thanks for the response.
To get specific; I have a 40 year credit history and have taken great pains to keep a clean record and check my reports about twice a year. Over the years, I found errors and have corrected them-not a big deal. During the last four years there was one late pay reported (30 days) which I disputed.
In all this time my scores consistently improved even with the one reported late pay. In April of 2008 my scores were (T/U 788, Eq 739, Ex 825). When I ordered my reports in December the scores were (730, 703, 735) respectively. By the way I use "myFICO" exclusively.
I know that from time to time the relative value of the scores will go up and down but this is crazy. During this period the number of reported amounts and the outstandings themselves have lowered.
You should know that I was in the credit business (Business not Consumer credit) myself for many years and I will tell you that this defies all logic that I know when evaluating a credit rating.
I am anxious to get this sorted out, if for no other reason, these were the kind of scores I was getting ten years ago. Of course, as you are aware, these new scores put me in a lower tier and at my age I don't have the patience to explain to some young........that I should get the "most preferred rates".
If you can make some sense of this, I would be most grateful.
Kevork
That is odd, when did the late payment appear on your reports?
Let's start here, on your reports on the second page it should list what's hurting and what's helping your FICO score, can you tell us what you have there for each?
Hopefully some other folks can chime in with some explanations too.