@EW800 wrote:I had always thought that FICO had no memory as far as Util. Is that not correct? I would have thought that it would have gone right back up if indeed there is no Util memory.
as far as i know it still goes up , i had zero util , and then had small balance reporting and my scores went back up as soon as balance reported. I guess YMMV
In my experience, if I lose points due to a large balance reported, when I pay off the balance my FICO score goes back to where it was, and then some.
@Anonymous wrote:Mishka,
I am plenty old enough to understand that life is not fair. My point is that if an individual is paying their debt, the negative reports should have equal impact on their score as the positive, not MORE of an impact. Also, it is ridiculous that people are penalized for paying off debt (i.e. my score dropping for paying off my student loans). My score should have raised by hundreds of points if anything! This showed that I was responsible enough to pay off a large debt. In regard to an error, if one is reported and removed it only makes (common) sense that the initial deducted points are replaced. It should not take YEARS to earn back the points deducted from errors. There is simply no excuse for such disregard to other people's lives and the impact they have.
While life is not fair, simple math should be! It is a matter of disrespect and ignorance that upsets me. The institutions responsible for the reporting and calculations need to be held responsible for the impact they have. They have been permitted to do what they wish without fear of penalty. This needs to change! There needs to be a system in place that holds them responsible for their actions and monitors the deductions and increases they decide. This is necessary because they obviously cannot do it on their own in a consistent and equitable way.
Can you share with us more about your credit profile? What is your MyFICO scores now, how long ago were the student loans paid? Do you have credit cards? How long ago was the negative removed? Where are your FICO scores from? What open cards and loans do you have now? CL and balances, how long have they been open, etc.
FICO is a complex model. The score changes, sometimes by large amounts. People have reported huge increases when historical derogs dropped off their reports, and in the long run, yours will balance out as well. Your comments about changes in your score may be accurate, but are not including the long sweep of details that goes into your individual score.
To expect the FICO model to be simple is not realistic. The details you have listed make for good headlines, but are not all the details that go into the score. Many have posted similar complaints here, and when the details are presented, or more history is revealed, time passes, it turns out not to be too far off of what we would expect to see, understanding that the algorithm is not perfect and can have lumpy changes.
i thought usually when you pay off an installment loan your scores usually take an major dip. That is why people like to carry secured loans like what alliant offers to keep scores up.