have the fico monitoring from this site and my question is.. I have watched my scores (Transunion) go alll over the place during the course of the month! 1st it went to 691 from 662 then it dropped 6 or 7 days later to 672 and now today its back up to 688! Why is that? Equifax and Experian will flucuate some but nothing like Transunion. Any insight would be appreciated.
Bump! Anyone??? Thanks
I guess nobody knows?
Ok, based on the limited information you provided and the large swings in score here is my estimation. You will need to fill in the blanks but this is the Most Likely Scenario:
1) You had some set of Baddies in your past that were on your credit file. Either several lates, a charge off or two, possibly a BK several years ago, but most likely one or more of those items was only being reported to your TU file.
2) Those items are now dropping off your TU file. That is the most likely reason for the first initial jump in scores. A significant baddie going away is the only thing that can suddenly cause a jump, and those/that baddie does NOT initiate a score alert, it just goes away, and when a minor balance change occurs, the score recalculates without the baddie.
3) FICO does not like large score changes, so after the huge jump in scores, it does a "reversion to the mean" and any slight minor change like a rise in a reported balance on a card, some app/HP showing up, or other new hit, will cause the score to have a reason to backtrack. It's like FICO says, "See! I knew this person was not trustworthy! Down goes the score". (it's helpful to anthropomorphize FICO, it's more fun that way).
4) After the negative shock wears off and FICO decides that, ok, the trend of the score really is up, those baddies are really gone, and that new shock may not be so bad, then you get back the points, the trend continues up, and after several weeks, you can point to your score and say FICO has finally digested all the new information.
You should only look at FICO on a long term trend. Individual moves, even large moves, need time to stabilize and any move on any day, even 20-40 points, is noise until it has time to stabilize.
Cheers!
LOL thank you! I appreciate that! Just Transunion has had the biggest swings in the last 2 months.