MY SCORE HAS GONE FROM 805 T0 756.

[Anonymous]

Every person that has replied to this post would like you to get the help you need.

[Varsity_Lu]

Unless the OP has an open mind and wants to learn, he will continue to be frustrated. No amount of explaining will help. The problem isn't the instruction, it's the learner. He doesn't want to learn, he wants to complain.

[Varsity_Lu]

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@TB wrote:

And unless you actually are a FICO employee or worker, how could you possibly know for sure what you are stating as to how FICO works.

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FICO scoring is what is known in science as a black box. While it's true that outside observers can't see inside the box, it is possible to know its inner workings based on observing inputs and outputs.  Scientists have been doing this for thousands of years with all kinds of phenomenon.  A lot of what we know and understand about the universe comes from indirect observation. The reason MyFICO is so great is that you have thousands of data points that help us understand what's inside the black box. 

[Horseshoez]

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@TB wrote:

You are an idiot.

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Oh touché; your rapier like wit has slayed me.  That must mean all of your efforts to make a point here are correct.  

[Patient957]

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@Varsity_Lu wrote:

Unless the OP has an open mind and wants to learn, he will continue to be frustrated. No amount of explaining will help. The problem isn't the instruction, it's the learner. He doesn't want to learn, he wants to complain.

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Because it's easier to log into MF and post an all caps rant than it is to pay down high utilization or to try to understand how credit scoring works.

[Patient957]

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@TB wrote:

But I still maintain what I said. As long as a person always pays on time without missing a payment, their FICO score should remain higher than 800 or even a perfect 850 until they miss a payment. 

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You clearly have no clue how any of this works. 

Do you realize that Fico is a business that only exists because their customers, the lenders, pay money for their credit scoring products?  Their customers buy the products -- and this is important, so pay attention -- because the products work and meet a business need for the customers.

Nobody would pay for a credit scoring model like you propose, because it wouldn't work.  You would have 850 borrowers defaulting all the time.  It's like trying to sell new a car with no engine or wheels.  Nobody is going to buy that car, because it doesn't work.

As products for sale, credit scoring models have to meet the business need of the customer.  A company that tried to sell your proposed model, where everyone gets an 850 until they start missing payments and are on the precipice of default, would be out of business in a week, because it would be trying to sell a useless product, like a car with no engine or wheels.

So why don't you go over to the automotive forums and tell the folks there that you have a better idea for a car?  One with no wheels or engine.  Tell them how dumb they are for using engines and wheels all these decades, since you have a better idea for a car without them.  Make your post in all caps, so they know you mean business. 

See how that goes. 

[Thomas_Thumb]

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@TB wrote:

Don't reply any longer to my post.

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Woe is me.

Payment history and length of payment history are an important part of risk assessment. If you have 12 months of payment history while someone else has 120 months is that important? Yes, there is less uncertainty from a lender's perspective with someone having an established 120 month history of on time payments. It demonstrates consistent ability to manage credit.

I'm hiring for a position. Candidate A has 6 months related experience while candidate B has 5 years. Should that influence hiring decision outcome? It does and may be used as a screening tool.

Someone has 10 revolving credit cards all reporting small balances relative to credit limits. Is that risky to a lender - perhaps not. Now if minimum on time payments are made to avoid lates but revolving balances grow to become a high percentage of credit limits would a lender consider that profile risky? - yes indeed! Highly leveraged credit is a red flag. Would a lender want a credit scoring model they pay for to identify leveraged credit (high utilization) as increased risk? Obviously yes!

In both of the above cases payments are made on time. Big data and common sense tell us that many factors in addition to utilization and credit history influence risk. Scoring models rightfully incorporate these factors into their algorithms.

You don't need to like Fico but, it would behoove you to try to understand it.

As the Borg would say... Resistance is futile.

[FICOdawg]

OP, do you know what changed?     You add to your CC balances or take out a new loan?

FICO hammers your score for high utilization of CC if you made a big purchase.

Curious what changed to make your score drop 50 points.

[Gregory1776]

@FICOdawg 

he never provided answers.

It's a whole month now, so if a large purchase reported and he paid it his score would go right back up.

[FICOdawg]

If anything is clear about FICO is CC utlization or missed payments are the biggest sledehammers that will cause massive point drops.    

Now, whether or not the FICO model accurately reflects real-world vs theoretical risk is another topic altogether