Why is my FICO Score Falling

[Anonymous]

ilovepizza,

Beg pardon?

[Anonymous]

I Luv Pizza,

Well that makes some sense at least. Although I don't agree with it dropping your score. Should have no effect one way or other really.

[Tuscani]

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ilovepizza wrote:
If something old on your credit report such for example as a car loan dropped off after 7 years, so do the points I think.

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Not true.

[Anonymous]

Tuscani,

What happens to debts after 7 years and what does it do to your credit score?

[Anonymous]

7.5 years and it has to go bye-bye from your reports. SOL might still allow a creditor to sue, in some states, but they cannot report.

[Anonymous]

Noah,

But the debt I'm talking about is over 10 years old, was always paid on time. Why would my score lower just because it was dropped.  It feels like FICO has a ton of back doors to scoring.

[Anonymous]

When a positive TL drops off your CR, then yes your score will drop. This is one of the unfortunate realities of credit reporting.

By law, the CRAs and furnishers are limited to how long they can report adverse TLs. Once it's too old, it has to drop.

However, there is no legal requirement on how long positive TLs have to remain on your report. Once the OCs stop reporting, like when you pay off a car loan or PIF and close a CC, there's no telling how long it will remain. Might stay until you die, or it might disappear in an "oops". More than a few people have reported CSC apparently arbitrarily deleting positive TLs whenever a consumer disputed something.

[Anonymous]

Noah,

Thanks for your info...pretty interesting.  Still doesn't explain the small drop in my credit score..but good to know for future reference. It seems crazy that something that was a positive(on old TL) and having no subsequent negatives on other TL, could negatively impact score..seems if they are doing a wieghted measurement then it wouldn't have more than a  one or two point affect on score. Credit reporting is wierd.

[Anonymous]

Perhaps the score dropped because of the age of the trade line.  It may have been because it impacted your length of history a little.  Sucks, I know, but that's the game.

[Anonymous]

Yeah I think the credit scoring ssystem is just strange. Something that was a positve suddenly becomes a negative simply because the system decides an TL is too old to be on the credit report...

Lower credit scores of course increases chances of increased borrowing costs (and insurance costs as someone mentioned in an earlier post).The only other place where the odds are stacked like this is in casino's.

I guess the only way to win is to not borrow money and stay out of the casino's.