What if scenarios??

[Anonymous]

Is there anything out there (like some sort of calculator) to see what would happen over time if you had bad credit and paid everything off, and how your score would improve over time?

[jbmello]

they have a score simulator on myfico.com if buy a report I believe. I have score watch and when I pay for a discounted score and report for 10 dollars they let me play around with scenarios for 30 days on that report and it can go out two years I think.

[Anonymous]

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@Anonymous wrote:
Is there anything out there (like some sort of calculator) to see what would happen over time if you had bad credit and paid everything off, and how your score would improve over time?

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If you have "bad credit" paying off won't remove the bad marks. But will increase score about 12 points for every 10% of debt to total credit that you owe.

[haulingthescoreup]

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@Anonymous wrote:
Is there anything out there (like some sort of calculator) to see what would happen over time if you had bad credit and paid everything off, and how your score would improve over time?

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Try this:

FICO Score Estimator

Enter the info from only one credit report. So if you have 7 inqs total, but just 3 on the report you're using, enter 3.

The estimated score range is really broad, so look at the middle of the range. If it projects 680 - 740, think 710, and realize that in the real world, there will be a lot more variables.

[RobertEG]

The various score simulators available online are OK for those with only simple actions, but are inadequate, and often misleading, for those who take actions that influence other FICO categories.  The FICO algorithm is an intertwined relationship between five major categories.  Actions taken in one category almost invariably affect the others.  For example, enter into the simulator paying down CC debt by x-percent in the next 1, 3, 6 mos ect., and it will give you a number.  But where did the $$'s come from to do that?  If from your pocket, than maybe it has meaning.  But if it came from a BT, then overall %util may not be affected, but what about the sudden jump in %util  on the transferring card?.  If the $$ came from a new TL, install or revolv., then what about the inqu to create that TL, the altering of avg credit history by adding a new account, the addition of a new TL that shows high indiv. util, the increase in the number of cards with balances, yadda, yadda yadda.

The online simulators dont show you this, not because they dont have the capability, but because in doing so, they would reveal too much about the FICO scoring algorithm.  I do not fault them for limiting the scenarios offered, I just offer caution in their use.

I would love to see a simulator that offers the ability to show the shift of current balances between existing accounts, concurrent with the opening of a new TL to pay off current higher balances, the aaddition or deletion of a TL, the aging of current TLs, etc.  You got a better chance of seeing the Pope endorse either John, Hillary or Barack.

I take the simulators with a grain of salt.

Message Edited by RobertEG on 04-19-2008 11:05 PM

Message Edited by RobertEG on 04-19-2008 11:11 PM

Message Edited by RobertEG on 04-19-2008 11:16 PM

[Anonymous]

When I first started my score was in the middle of the simulators. But now that I leaned how to tweak things I can't be simulated any more as they are not remotely close any more with me. But someone just starting out doesn't know what we know until they hang around for a while. I think the sims will apply to them more accurately.

The FICO simulator for UTL specific under scorewatch was exact for me. I learned so much from that. But it represents as you stated a very specific narrow change with no other factors.

[haulingthescoreup]

I should have clarified in my earlier post, the Estimator is very broad, because it is not tied to a specific CRA. All three CRA's have different formulas, giving varying weights to all the different data. For instance, I have found on my reports and on my kids' reports that EQ penalizes more heavily for lates than do the others, and TU really wants to see most accounts without balances.

So the simulators that come with your EQ and TU reports (EX refuses to play) are running the data through the specific CRA's formula. The Estimator is going on very general FICO principles. The handy thing about the Estimator is that you can manipulate multiple variables at one time, and if gives you more things to choose from. Additionally, it is a handy little time machine, allowing you to enter what's on your reports now, but leaving out those pesky baddies, showing where you might be if only.