Eloan and FICO Clash

Discussion in 'Credit Talk' started by Rufus, May 20, 2001.

  1. Rufus

    Rufus Member

    The Eloan credit analyzer told me to close my department store card and transfer the balance to my Visa. I have 4 Visas and one department store card. On this board the FICO score strategy that was published says to have at least one department store card and 2 Visas or Mastercards for an optimal credit score. My FICO report never said to close the department store card.

    Anyone have a similar situation and/or would comment on this disparity of advise between Eloan and Fico? Should I close the department store card?
  2. Saar

    Saar Banned

    We can try helping you figure out why it prompted that response. Could you provide the exact wording of the E-Loan advice? Also, what is the DS card's status (age, issuer, balance & reported limit)?

  3. roni

    roni Well-Known Member

    Eloan is telling you to transfer the balance to help your ratios. What is the balance on the retail card. I bet you are over 20% utlitization of available credit. IF the balances on one of your visas is low, the analyzer is probably suggesting this to help your ratios. Does this answer correlate to your credit situation. That is the only thing that I can figure.
  4. Rufus

    Rufus Member

    This is a copy and paste from the Eloan advise on action to take to improve my credit rating. It advised only one action. Also, I am using 61 percent of my credit line on my 3 Visas and 1 Mastercard. Eloan said to pay that down to below 50 percent.

    Action 1
    Objective: Reducing the number of open revolving accounts in your credit report.
    You can do this by closing an existing account that has a zero balance.
    Action: Clearing the balance on your MACYS DEPT STORE account (****), and close the account.
    Transferring $248 from your MACYS DEPT STORE account (****) to your FIRST CONSUMERS NATL B account (****), and closing your MACYS DEPT STORE account.
    Score Impact: Potential increase of +3 points (from 650 to 653)

    GEORGE Well-Known Member

    My opinion...I think you would LOSE more than 3 points by closing MACY'S...
  6. Saar

    Saar Banned

    Never ever do anything for the sake of 3 points. You need a stable long-term score building strategy.

    You need to realize that E-Loan's algorithm (CreditXpert) is not designed to suggest "creative" steps, such as applying for a credit increase w/ Macy's, to lower that account's debt ratio. Or you could simply pay it off either earlier that you had planned or prior to paying off other accounts.

    I'd recommend that you call Macy's credit customer service, ask to speak w/ Credit Granting and see what they say. Good luck!

  7. NanaC

    NanaC Well-Known Member

    Did Eloan correct their inquiry problem?? Is this still resulting in a hard inquiry?
  8. Rufus

    Rufus Member

    Thanks for all your responses. My accounts are only 2 years old. I don't want to close them, and your advise seems to point to that.
  9. DaveLV

    DaveLV Well-Known Member

    My hard inquiry is still showing on Experian.
  10. Laray

    Laray Well-Known Member

    Is there a separate credit analyzer on eloan or is everyone talking about the short blurb given in the credit score area? They listed an action that I should pay off the 351 I owe to Capital one to increase my current score from a 608 to a 616.....I already paid it off.....
  11. river

    river Well-Known Member

    I would suggest that you keep your macys" card and if ratio is over 20% call Macys credit Dept and ask for credit line increase. If ratio is over 20%,asking for line increase will drop the ratio below 20%. I would figure out what your limit is now and and calulate to see how much u r over the 20% ratio and ask for a increase that will put u at 15% or lower,allow yourself some room to play with.
  12. breeze

    breeze Well-Known Member


    Maybe yours was a short blurb, mine was a good-sized paragraph. ;)


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