system is flawed

[Anonymous]

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@dunn2500 wrote:

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says the reason and right next to it on a small icon it shows how many pts it went up or down  as a result of that notification.....it sure looks like its connected...i.e " the total balance has increased by $44,000"  arrow down 21pts

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It doesn't say "the" reason, it says "a" reason.  That's how the alert system works.  You get an alert reason which is a change to your credit report.  At that time they also tell you if your score went up or down.  The score change does not have to be at all related to the alert reason.

Example:  Someone opened their last credit card in January 2020.  That credit card will reach 12 months of age on Jan 1, 2021.  This is not an alertable event.  If this person possesses a clean file with a score of 760 on Dec 31, their score may increase to 785 the following day due to this unalertable account change.  On Jan 1, unless this person gets a fresh Fico score pull, they will be unaware of the score increase since it's not alertable.  Now, say on Jan 2 the reported balance on one of their credit cards increases from $17 to $18.  This dollar increase would have no impact on score.  They will be provided with an alert that says that there was a balance increase on their report and there would be an arrow next to it pointing up, 25 points.  Clearly the dollar increase did not increase their score 25 points, even though the provided misleading graphic may suggest that.  Hopefully this makes sense as to how your alert and score change weren't related.

[Anonymous]

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@dunn2500 wrote:

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that is correct but its same loan, it just takes a minute for original to fall off so there is an overlap showing 2 loans on same vehicle though it doesnt appear that way.....it appears as if i have 88k in car loans which isnt correct......just seems like they would recognize this as it has been standard practice to refinance loans since beginning of time, lol

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I get what you are saying, but it's not the same loan.  It's the same vehicle, but not the same loan.  There is no relation when it comes to your credit report between the original loan for the vehicle and the refinanced loan.  The algorithm doesn't recognize that one loan is replacing the other, it simply sees that one loan opens and another closes.  Yes there is a brief period of time in between often where both loans may display as being open on your CR.

[dunn2500]

they sure make it look connected but i guess not and well that sucks....nothing else has changed on my credit absolutley nothing so for refinancing a loan it cost me 50-60pts, i never would have guessed that ....next time i will know and hopefully wont need to refinance anything and just get a solid rate from the beginning.....

I only have 1 credit card and its same every month and thats all that is on my credit so it couldnt be anything but the refinance for point drops

thanks for clarification

[Anonymous]

Did the oldest account on your credit report recently hit 3 years?  I'm trying to find another reason for your score drop.

[Slabenstein]

What was the most recent statement balance on your one cc?

[dunn2500]

$24.......every month i leave that amount because when i paid it to $0 they dinged me points.....my limit is $300

what i dont understand still to this day is my due date is the 13th and statement is 17th..... if i pay it down to $0 on the 13th.... my statement on 17th shows $0 and i get dinged for not using the card but i do use it.....so i just started leaving a small balance on the 17th so it reports i am using card and as result my score goes up a bit......if i had an auto pay set up on the 13th  and paid it off every month i would not get credit for using card because of the 17th statement date......another thing that is really odd about this game

[Anonymous]

Not sure what you mean about getting credit for using the card.  Do you mean from the lender or from the Fico algorithm?  The lender sees what you spend monthly, so what the reported balance ends up being doesn't matter in their eyes.  In terms of the Fico algorithm, if this is the only card that you have or plan to report a small balance on then yes, you need to report a non-zero balance monthly in order to not get hit with the "no revolving credit use" penalty. 

If your payment is due on the 13th and your statement cuts the 17th, my recommendation for you on the $300 limit card would be to leave just $10 to report.  Basically log into your account on the 12th or early on the 13th, if your current balance is (say) $124, submit a payment for $114.  That will leave $10 behind to report. 

[dunn2500]

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@Anonymous wrote:

Did the oldest account on your credit report recently hit 3 years?  I'm trying to find another reason for your score drop.

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oldest account meaning auto loan or ?.......i have accts for 10 yrs or more.....old auto loans, etc

[dunn2500]

getting credit i mean my score....sorry for confusion

when it reports $0 i take a hit on score when it reports small balance my score goes up a bit

[dunn2500]

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@Anonymous wrote:

Not sure what you mean about getting credit for using the card.  Do you mean from the lender or from the Fico algorithm?  The lender sees what you spend monthly, so what the reported balance ends up being doesn't matter in their eyes.  In terms of the Fico algorithm, if this is the only card that you have or plan to report a small balance on then yes, you need to report a non-zero balance monthly in order to not get hit with the "no revolving credit use" penalty. 

If your payment is due on the 13th and your statement cuts the 17th, my recommendation for you on the $300 limit card would be to leave just $10 to report.  Basically log into your account on the 12th or early on the 13th, if your current balance is (say) $124, submit a payment for $114.  That will leave $10 behind to report. 

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yes exactly.......thats what i do now to keep a revolving credit use instead of none....took me a few months to figure that out