Updated TU FICO: lower score with better info. ???

[ztnjpv]

I have a compulsive habit of updating my FICOs whenever I see movement or changes in my daily updates elsewhere. I'm sure I'm not the only one.

I don't normally update a score 9 days apart but I'm in the middle of a turbulent run with deletions on some reports and changes and updates on others so I have a quick trigger finger. In the case of TU, one of my CreditKarma scores increased because my local bank finally updated my loans for the first time since January. Slackers. Anyway.....

Much to my surprise, my TU FICO today updated with a LOWER score. I was at 735 on my last update on 4/10 and with the updates I'm at 723 today. I don't get it. It could be temporary rumble that will improve in the next few days or weeks but I still find it puzzling. 

I just had the two reports side by side and compared everything piece by piece. There are 3 differences between the reports down to last detail inside each account box. A credit card went from a $14 balance to $0 (my report now shows no balances on cards) and my two loans with my local bank updated with lower balances now that 3 payments since my last update have been figured in. That's it. I even checked to see if any of my $0 balance cards had an update in the last 9 days from 3/2012 to 4/2012. None. 

So, we have:

1. Same number of accounts on both.

2. Two accounts with balances compared to three previously

3. $0 balance on revolving accounts compared to $14 previously

4. Same number of inquiries.

5. Same number of accounts with a negative flag. 

6. An AAoA that is slightly older (for whatever that is worth...prolly nothing in only 9 days)

But I dropped 12 points?? Any know something about the behavior of FICO that would shed some light on this?

[Anonymous]

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@ztnjpv wrote:

3. $0 balance on revolving accounts compared to $14 previously

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It could be this.

So you were at 0% utilization overall versus about 1% now?

[ztnjpv]

BTW, the only thing I can think of to explain this is that having zero balance across all my cards somehow lowered my score. But if that's the case, that's pretty stupid. FICO should get a little more sophisticated and find a way to know that the card was used between updates even if it's reporting a zero balance. All my cards had balances that were paid in full before the statement date. Sometimes I leave a few bucks on one or two. This month, I left nothing. If that's bad for a score, something needs to change.

[ztnjpv]

"So you were at 0% utilization overall versus about 1% now?"

---------------------------------------------------------------------------------

Other way around. I had a $14 balance on $12,700 of limits on 3 reported cards on my older report from 4/10. NOW, I have zero balance on the same 3 cards as of today's report. 

[Anonymous]

LOL Yes, glad you understood what I meant, even though I typed it backwards.

Unfortunately, it seems like the scoring does better when you show some sort of a balance by statement date, even if you PIF by due date.

[ztnjpv]

Well Frugs,

For all the supposed sophiscication of the FICO formula, this feature of it is quite blunt and clumsy...and for something so critical no less. It's silly that the Folks at FICO can imagine people charging considerable amounts beyond their limit with multiple payments during the month and a PIF before the statement date or just a couple hundred per month with a PIF before the statement date or NOTHING AT ALL and have it all look the same in the eyes of the formula. FICO should know this isn't good enough if truly accurate pictures of credit worthiness are their stated goal.

[sunshine7157]

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@ztnjpv wrote:

I have a compulsive habit of updating my FICOs whenever I see movement or changes in my daily updates elsewhere. I'm sure I'm not the only one.

I don't normally update a score 9 days apart but I'm in the middle of a turbulent run with deletions on some reports and changes and updates on others so I have a quick trigger finger. In the case of TU, one of my CreditKarma scores increased because my local bank finally updated my loans for the first time since January. Slackers. Anyway.....

Much to my surprise, my TU FICO today updated with a LOWER score. I was at 735 on my last update on 4/10 and with the updates I'm at 723 today. I don't get it. It could be temporary rumble that will improve in the next few days or weeks but I still find it puzzling. 

I just had the two reports side by side and compared everything piece by piece. There are 3 differences between the reports down to last detail inside each account box. A credit card went from a $14 balance to $0 (my report now shows no balances on cards) and my two loans with my local bank updated with lower balances now that 3 payments since my last update have been figured in. That's it. I even checked to see if any of my $0 balance cards had an update in the last 9 days from 3/2012 to 4/2012. None. 

So, we have:

1. Same number of accounts on both.

2. Two accounts with balances compared to three previously

3. $0 balance on revolving accounts compared to $14 previously

4. Same number of inquiries.

5. Same number of accounts with a negative flag. 

6. An AAoA that is slightly older (for whatever that is worth...prolly nothing in only 9 days)

But I dropped 12 points?? Any know something about the behavior of FICO that would shed some light on this?

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The same thing has happened to me several times. I consistently get hit with a lower score if all cc's show a zero balance. I now carry a 1% util on only one cc. That seems to do the trick (for me at least). And as always, YMMV.

[tcbofade]

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@ztnjpv wrote:

Well Frugs,

...FICO should know this isn't good enough if truly accurate pictures of credit worthiness are their stated goal.

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...and right there is where you are confused.

FICO isn't measuring your credit worthiness.

They're measuring your likelihood of default.

or, they're measuring how well you handle your debt obligations.

No debt? Then you're not handling it, are you?

I know that it seems counter intuitive, but if maximizing your FICO score is your goal, let a small balance report on ONE credit card each month.

[Lel]

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@ztnjpv wrote:

BTW, the only thing I can think of to explain this is that having zero balance across all my cards somehow lowered my score. But if that's the case, that's pretty stupid. FICO should get a little more sophisticated and find a way to know that the card was used between updates even if it's reporting a zero balance. All my cards had balances that were paid in full before the statement date. Sometimes I leave a few bucks on one or two. This month, I left nothing. If that's bad for a score, something needs to change.

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Here's the problem: the FICO score can only be calculated from the information that is provided to the CRAs by the creditors.  The credit card companies do not provide day-to-day information about balances and payments to the CRAs.  They only report a single amount - the statement balance - once a month.

There's no way to change the FICO score to see information that isn't reported to the credit bureaus.

[ztnjpv]

"There's no way to change the FICO score to see information that isn't reported to the credit bureaus."

Of course not. But making that information something that the CRA's ask for or suggest giving wouldn't hurt. It's one more number: total amount spent.