I am new here but have a couple of questions. First off, I am trying to increase my fico to qualify for a home loan. Right now my scores aren't that great 589 on TU(not reporting acct balances correctly) 624 Equifax, and 654 on Experian. My question is this. I have been paying down all of my credit cards to 30% and some are not reporting this yet. Do the bureaus generate your fico once a month or every time something changes on your report? I just purchased my 3 reports and 3 scores today, how long should I wait until I get them again? Some of the accounts are not reporting my balances correctly and I paid them last month. What is the easiest way to increase your score? Thanks everyone!
I believe that a score change happens everytime something changes on your report. Even if its just a hard inq. Recently I just opened a new CC and my score went up 6 points after being dormant for 2 months. Get the Score Watch thing from Equifax for like $9 a month and you can keep track of your EQ score whenever it changes instead of pulling new reports. Thats what I do and I'm happy. As far as raising your score it really depends on what type of credit you have reporting right now. Sometimes just getting a new CC can get you an increase like me
Scores Transunion-680 Equifax-661 Experian-701 As of 11/8/08 Scores Transunion-719 Equifax-697 Experian-788
Have you read Credit Scoring 101? It's a good intro to what is a really complex subject. One thing that you will quickly find is that all this stuff is linked, and works together to increase scores, decrease scores, or cancel out each other's effects.
Not everything triggers a score change by any means. For many people with fairly new credit and who already have some inqs, one additional inq might not trigger a score change.
Trying to link one score movement to one action can make you really crazy, really fast!
Generally, your accounts will update to the credit bureaus once a month, most often on the statement date (NOT the due date --take a look at a statement to see the difference.) Then you have to wait for the credit bureaus to update their reports. Recently TU has been in a fog, and a lot of members are seeing obsolete info still displaying. So there are a couple of variables.
When everything is ticking along, your reports should be completely refreshed every 4 - 6 weeks. "When everything is ticking along" is the critical factor.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit? FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Monthly FICO scores are interesting to track as a way of learning the system, but should NOT beome a monthly obsession if you know the system. As Hauling points out, credit scoring is a complicated model, and changes or actions can affect more than one scoring category. Time is a major factor in each category. I strongly feel that any sound FICO strategy must start first with the simple question.... "When do I plan to apply for new credit?" Up until that date, monthly past FICOs are simply past history. If you are not going to apply for new credit, for example, within the next 12 months, then new inquiries are meaningless, even though they will hurt your immediate FICO. They die after one year. If they result in higher CL, then it is good strategically . But if you plan to apply for new credit within the next few months, your whole strategy will clearly be different. Getting to a desired %util also depends upon when you are planning to use your FICO to apply for new credit. If a year from now, you can pay down % util gradually, and get to the desired point. However, if you plan to apply for credit in the next few months, then pay it down quickly to get to that same %util earlier. FICO planning is strategic, not tactical.