Trying to comprehend incomprehensible (FICO score)

[wmarat]

OK guys, I have spent a lot of time on this forum and started thinking that I have some idea about credit system. But FICO made me understand that there is no system in crediit system.

Most of veterans of this forum like to preach that if one keeps his util under 10%, one should be OK and his/her scores should crawl up.

I've got SW alarm today, alarming that my EQ score went down 2 points becouse balance of 167$ was reported and my util. increased.

Now, this balance on my JC Penney card, CL is 1800$, so util is 9.3%. My total CL (exluding autoloan) is 41000$, reported balances 226$, means my util is  0.55%. Previous balances were 101$ and util 0.25%. So, increasing util from 0.25% to 0.55% caused to 2 pts lost.

Does it make any sence?

P.S. BTW, my TU report has not been updated since 11.2007. Does anybody know what is going on with TU.

[haulingthescoreup]

TU has been a complete zombie for me--no updates in nearly a month. On the other hand, EQ is now dropping closed accounts from many members' reports, left, right, and center.

I have gotten movements of 1 or 2 points with small balance changes on both EX and EQ. On TU, I got a big change for going from 0% to 5% to 1% (on an individual card.) I can't untangle whether it's proof of the elusive under 5% scoring break, or a change in the number of accounts reporting.

So I have finally decided to be kind to my sanity, and not worry about score movements that are that small. The bigger ones definitely get my attention, though!

[Madison]

I haven't received a change in my EQ Fico score in over 30 days even though my new FICO report I paid for showed that 1 inquirey went off, CC got a $1,000 CL increase, paid off on department credit card balance to $0 and reduced my revolving credit debt by over $1,000. What makes matters worst the new report from MyFico EQ didn't give me my utilization % which should be 40% down from 50% on my last report.It just gave total amount of revolving debt I had saying it was high. I think this Credit Score stuff is a scam to screw the public. What is also strange is I got 4 Score Watch reports which showed my score increasing 622 to 658 in December and now it is 30 days later and making more than minimum payments on all my credit cards and I have gotten nothing, zilch, natta, zero....Are the folks at EQ gone to sleep or what? I don't know what recourse I have. I know my score has to be higher.....How do you get to talk to the Great Wizzard of Fico? Pay no attention to the man behind the curtain, cause the Great Wizzard of Fico has spoken. I guess I will have to get the broom stick of the Wicked Witch of the West before I can get to 680!

[wmarat]

---

Madison wrote:

I haven't received a change in my EQ Fico score in over 30 days even though my new FICO report I paid for showed that 1 inquirey went off, CC got a $1,000 CL increase, paid off on department credit card balance to $0 and reduced my revolving credit debt by over $1,000. What makes matters worst the new report from MyFico EQ didn't give me my utilization % which should be 40% down from 50% on my last report.It just gave total amount of revolving debt I had saying it was high. I think this Credit Score stuff is a scam to screw the public.100% AGREE. What is also strange is I got 4 Score Watch reports which showed my score increasing 622 to 658 in December and now it is 30 days later and making more than minimum payments on all my credit cards and I have gotten nothing, zilch, natta, zero....Are the folks at EQ gone to sleep or what? I don't know what recourse I have. I know my score has to be higher.....How do you get to talk to the Great Wizzard of Fico? Pay no attention to the man behind the curtain, cause the Great Wizzard of Fico has spoken. I guess I will have to get the broom stick of the Wicked Witch of the West before I can get to 680!

---

[wmarat]

---

haulingthescoreup wrote:
TU has been a complete zombie for me--no updates in nearly a month. On the other hand, EQ is now dropping closed accounts from many members' reports, left, right, and center.

I have gotten movements of 1 or 2 points with small balance changes on both EX and EQ. On TU, I got a big change for going from 0% to 5% to 1% (on an individual card.) I can't untangle whether it's proof of the elusive under 5% scoring break, or a change in the number of accounts reporting.

So I have finally decided to be kind to my sanity, and not worry about score movements that are that small. The bigger ones definitely get my attention, though!

---

haulingthescoreup
Being new in this country, I am just trying to understand and comply with FICO rules, but apparently there are no rules. So, I have decided to ignore scores. I and my wife have enough available credit, we are not going shopping for a house next 5 years, we do not need credit cards, so it does not matter for us what our scores are.

Generally speaking, I find that all this FICO stuff comes to help lenders to "screw" public.

[Anonymous]

Actually you will need credit cards to build up history for your score. In a nut shell, your score is compiled of your credit history. The more good history the better your score. Lack of good history and your score will generally be lower. Credit cards that have very low balances show ability control spending. Each month that you make a payment, this is reported and you get good history. If you do not get a credit card, you will not have revolving history and could loose out on 30-40 pos points. Best to start gaining credit history as soon as possible. Your score is an investment. It takes time to grow. If you don't seed it, it won't be there when you need it.

[haulingthescoreup]

I think it's very reasonable for those who are not expecting to apply for credit anytime soon to pretty much ignore the entire process. Unlike 99% of the rest of the population, wmarat knows what is involved in credit scoring, so if and when the time comes, he knows what will get him good rates. As I remember, he has several cards and is using them, and they have clean histories.

Remember, this whole scoring system came about with a population that was completely unaware of its existence, much less how to work it. Those who have some credit, use it modestly, and pay on time can easily fine-tune their util to optimize their scores when the time comes.

Every now and then, threads like this remind me that I have spent an awful lot of time, perhaps too much, gazing into my credit navel!

[wmarat]

Another proof of unpredictability of FICO. I lost 3 points(EQ)  for 167$ balance on 1800$ card last month.

I've just got SW alert that my EQ score went 22 points up and the reason is a balance of 66$ on 11000$ card. The total balance on all TL's is almost the same (exluding Auto Loan). So by FICO whim I am in 700 EQ club (EX is over 700 too, TU is 696 as of 12/07). What's scary me is that by the same whim I can find my self in 400 club..

BTW, my EQ scores are identical on MyFico and TC, coincidence?

It's weird but score cahge happened on 02/14, alert has come today, 72 hrs later.