Untruthfulness in lending

[Anonymous]

I am appalled with the dishonesty of the FICO scoring model. I have had a credit score over 800 for several years if not decades. I have no bankruptcies, credit cards have never been placed into collections, and all car-loans were paid on-time and in-full.

Being mindful that having an unused credit card could be a security risk, I closed a revolving line of credit as well as a personal line of credit that were unused for years. To my surprise, my credit worthiness, at least according to FICO, dropped to under 700. This is an untruthful representation of my credit worthiness to future lenders.

[FireMedic1]

So you left yourself after closing with no revolving account or an installment loan? If so whats reporting? Need more info. Not making any sense. Looks like you have no accounts then.

[simplynoir]

You closed a credit card and PLOC and scores dropped 100+ points as a result?

I honestly find this very hard to believe

Assuming sufficient limits to maintain utilization with the loss of the credit lines, closed accounts do not affect your scores much if at all since they will continue to report up to 7-10 years after the fact. In some cases they can be there longer

There is nothing else on your report that changed at all? And confirmed FICO 08 scores you're making your comparison with?

[Anonymous]

Feel free to let me know what could cause a 100 pt drop. I ordered two credit reports as I initially was suspicious that I had been a victim of identiy theft.

No,  just secret FICO reasons. All other credit cards show paid-in-full at end-of-month. The only change within my credit report was a credit card, with high credit limit, unused, that was marked "closed, paid as agreed" and plc with very small credit limit, unused, marked as same.

[FireMedic1]

We're trying to help. Once you check your reports. Did you find a baddie you didnt know about. Its still vague what your describing that happened after closing 2 accounts. Something went south somewhere. Isnt making sense.

[Phana24]

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@Anonymous wrote:

To my surprise, my credit worthiness, at least according to FICO, dropped to under 700. This is an untruthful representation of my credit worthiness to future lenders.

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I have to agree with the previous posters that this kind of a drop seems illogical from everything we(and especially the people on here I refer to as the "gurus") know about FICO scores.  However, plz let me remind you that "truth" or "reality" does NOT factor into FICO.  It's simply a statistical comparison of you versus the population as a whole.  I'm not defending FICO or the CRAs, I am not a fan of their ethics or values.  Yes, every algorithm and business decision is designed to favor lenders and if that screws us, too frigging bad.  You may want to post detailed info of your CRs both pre-and post- closure.  I suspect the gurus will spot something that could shed some light on your situation.

[SouthJamaica]

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@Anonymous wrote:

I am appalled with the dishonesty of the FICO scoring model. I have had a credit score over 800 for several years if not decades. I have no bankruptcies, credit cards have never been placed into collections, and all car-loans were paid on-time and in-full.

Being mindful that having an unused credit card could be a security risk, I closed a revolving line of credit as well as a personal line of credit that were unused for years. To my surprise, my credit worthiness, at least according to FICO, dropped to under 700. This is an untruthful representation of my credit worthiness to future lenders.

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Without more information we couldn't possibly tell you what happened, but I can tell you that closing 2 unused personal lines of credit would not cause a 100 point loss.

I would need to know:

1. to which FICO score are you referring, and from where did you get your score and your reported credit data

2. before and after the score change, what were your number of revolving accounts, the credit limits, and the reported balances

3. before and after what was the number of your installment loans, the original loan amounts, and the reported balances

4. what other changes occurred in your credit report data upon which the scores were based

[Anonymous]

Here are two statements from third-party (say auto insurance) report I can share regarding score provided my them:

"too few accounts paid as agreed"

"lack of recent installment load information"

[FireMedic1]

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@Anonymous wrote:

Here are two statements from third-party (say auto insurance) report I can share regarding score provided my them:

"too few accounts paid as agreed"

"lack of recent installment load information"

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The first one too few accounts PAG. Any recent lates above 60 days or more? Like a 90 or 120. That would be 100 pts

If you have no loans at all. Thats points left on the table but not 100 points. Still isnt adding up.

Pull your free annual credit reports. Look at all 3. There has to be a major negative that happened.

[AzCreditGuy]

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@Anonymous wrote:

Here are two statements from third-party (say auto insurance) report I can share regarding score provided my them:

"too few accounts paid as agreed"

"lack of recent installment load information"

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My credit scores were above 820+ around all 3, decided to close my personal loan and my scores dropped down to 780s, even with only 1% of credit being used across my cards. Its known that having a loan is part of the Fico game, unsure what lender you are talking too, but I doubt they would advise you to close any credit if you trying to obtain a loan? I'll be appying for a loan in the future and I know the rules that Fico plays to get a great loan.