What a disappointment; my Experian FICO score dropped from 641 in June 2000 to 574 today. Unbelievable but true. Here are the facts: During the 8 month interval, I opened 2 credit card accounts with $3K limits on each. My Capital One account was upgraded to a gold card ($3K limit from $1K) and I opened and paid off early a $1K credit union secured loan. I was never late once during this time. Indeed no lates since 1998 when I BK'd. Every month I steadily charged all of my tradelines and paid them off. A summary One auto loan ($400+ a month) 3 visa accounts ( 4 with Providian as of 01/01. Robinsons - May Macys One secured $1K credit union loan Also, Junum removed my foreclosure and several BK related Credit card accounts. At this time,my Experian report has 4 negative BK related credit card accounts and 28 positive accounts going back 10 years on it. What happened?? You guys can tell the board your opinions but here is what I think happened. The FICO score killers are: 5 inquiries in the last year. And my Capital One account which had no balance on it in June 1999 with a maximum use of $1K; currently has $2,300 on it. Capital One is not reporting limits. The lesson learned is that I will have no more Experian inquiries for a year and pay off the Capital One account next month when I ask for a limit increase. In April, I will try to add the Capital One limits to the 3 CRA reports. I saw my FICO score at the credit union where I bank both times. As you can guess, I was turned down today for a limit increase on my visa card. Oh well.
RE: Disappointed!! Saw my FICO Sorry Jim, that is quite a drop. I am sure that cap 1, they way it looks you owe out 2300 on your debts but the 3K isn't being included with your limits, this has to be a credt killer, may I ask what your other balances are with your other accounts?? I could be wrong but I didn't think 5 inquires would hurt your score that much?
RE: Disappointed!! Saw my FICO my other question is were these 5 inquires all within the last 6 months, if that it the case then yes I would say that would hurt more than if they were spread throughout the year. Mom
Hi Mom Enjoyed chatting with you last night. The credit analyst who turned me down told me the 5 inquiries over 8 months was the killer. This will be stated in the formal letter they will send me tomorrow denying me credit. I asked about the Capital One account. he said that he wasn't positive (who is about FICo) but he thought that was a negative too. yes it appears as I am using $2300 out of a $2300 limit.
RE: Hi Mom Enjoyed it too. Yes from what I have read the most inquiry hurter are those that have happened in last 6 months, or 8 months in your case. That is why I haven't applied for ANYTHING this year, so by June when I apply for mortgage my inquiries from 6 months should be good Yes that is what maked me soo mad about Citi and Cap 1, something needs to be done with these limits not be caculated into your equation, but you balances are when doing scoring. I believe that if you don't count the limits in the mix, then the balances shouldn't be counted either, of course Fair Isaac would disagree Mom
RE: Disappointed!! Saw my FICO Upgrading to gold per se has no bearing on your score. Inquiries older than 6 months have little to no impact on your score. 3-4 inquiries in the last 6 months will NOT kill your score. There are other possible explanations: - NEW revolving tradelines (=less than 6 months old) reduce score. - Not reporting the Cap1 limit gives erroneous credit utilization ratio. But since they do report the high balance, maxing up your card once will show a figure close to the actual limit. - Excessive number of open revolving accounts. Your report is another indication that pre-payment of an installment load provides little benefit. You should leave no more than 1 dept store card open and maintain no more than 5 open revolving tradelines at a time. Saar
I thought abour recent posts on the subject of FICO scoring when this happened today. You may be right on all the points you made. On another topic, I also thought that the July 1999 FICO scoring conference was smoke and mirrors like "Eric" did.
Saar Good points, now if your newest accounts have reached beyond 6 month mark, then would you say that this would not decreasing scoring factor, I realize that it won't generally help since they are established lines?? Just curious when I apply for mortgage in a few months my newest account will have aged by atleast 6 months, just trying to do the best with what I have Mom
RE: Hi Mom Jim, that makes no sense at all. I have 30+ inquires with experian and my score ? What a minute I dont know my experian score now. I got my transunion and Equifax score last month. But my experian score was 619 back in the summer when I had over 30 inquires in less than 90 days. Come on. True the capital one appearing nearly maxed out is not helping. The rep at the bank doesnot know what he/she is talking about. Five inquires may keep your score from reaching it's highest potential but it wouldnot make it drop 70 points. roni
RE: Hi Mom Another good point, the number in last 6 months does lower but not that much, I really think this whole scoring system is too hard to figure out. Example when we got a merged reports back in October I had 20 more inquiries than hubby did on Equifax, when it listed the scoring factors, his factor was excessive inquiries forget the code, but mine did not have the factor listed at all and I had 3 times as many as he had?? Found that very strange. Mom
RE: I thought abour recent pos saar is totally right Jim. You must analyze your report and make sure each trade is reported to your benefit. Also, Jim we had the debate earlier that too many new accounts hurts. You stated that you wanted to get as many as possible to make up for the negatives. I think your situation shows that it doesnot help much. Do you really have 4 providian accounts? roni
RE: Hi Mom How are you finding out your score?? I have all 3 of my reports and not one score is on it. I've been to my CU and they told me it is "illegal" for them to tell me. The same BS when I call the Big 3! (
RE: Hi Mom Right now you can only get scores from a lender/car dealer, they are not required to give you the scores but most do. But in March equifax is supposed to release scores and the others should follow. Right now we are all in the dark unless we apply for a loan. Mom
Let me update you Roni Recently, I decided to increase my tradelines from 6 to 10. I am at 7. This decision was made before yesterday's debacle. I thought I would go to ten and reduce back to 5 tradelines in 2 years when I expect to be mortgage hunting. Now I am staying at 7 unless the Nordstom card I applied for comes through. I have 1 Providian card and 3 other visa cards. As of today, I am applying for no more credit. I think my score was reduced by the 5 inquiries, too recent of credit granting and Cap 1 not reporting limits. In June 2000, when I saw the 641 FICO score, I had no inquiries, 1 visa card, 2 long established dept. store cards and a car loan. You know the rest. BTW. I answered this a day late because my computer crashed yesterday.
