Have scoured 2 EQ reports that are 4 days apart. Have checked and rechecked and the only difference I can find is that Texaco reported a $16 charge I made last month. Score went down 6 POINTS! The ironic thing was that since FICO preaches "Mix" I used this old card that I hadn't charged in probably 4 years. I was thinking that I would use it once, pay it, and put it back in the drawer, keeping it from going inactive. (And I thought it would positively impact the scoring model) I wonder what the trigger was? Using a card that had been dormant? Using a card with such a low limit? (I have pretty high limits on my other cards, but since I don't use this gas card, it is only a measly $250) Maybe it was that 1 extra charge that triggered too many (although reason codes did NOT change) It certainly didn't change ratios or proportions. Anybody have a clue? It really is crazy. I'm certain that the $16 made me a much more dangerous credit risk. 6 points is a lot! I find this data fascinating though. So when people discover these kinds of score changes, I hope they let others know. Knowledge is Power. C
BTW-- I know that nobody here *knows* FICOs mystery-score-formula. So, I am not expecting anyone to have a genuine answer. I'm just curious if anyone has observed anything similar on his/her own report. Every time I feel like I am beginning to understand the model, I get thrown by something like this. They have so many variables that the slightest change can trigger a bizarre score change. No wonder they didn't want us looking at these scores! I still think it is hilarious that a new installment loan causes FICO to rocket. That paying down mortgages doesn't seem to change any of the 3. That 1 inquiry can ding so many points. That paying down a balance has different effects on different days. That 1 report can say you have too many accounts, and another that you don't have enough. Are we certain that the people who designed the models weren't having a little fun?? "Hey, Mike. Let's make the score go down 6 points if the person applies for a credit card on a Wednesday, and 5 on a Friday?" (I'm only joking btw. I don't *think* they really did that)
I've had the exact same thing happen on Experian (CE). The more accounts you have balances on (even a small balance) causes you to lose points even when you don't get the "Too Many Accounts with Balances" as a reason code. I couldn't figure it out either but I did it three times and each time I lost points and then the following month when those accounts had zero balances again my points went back up.
Thanks for replying, Mist. I am really trying to keep track of these factors. By July or Aug (if the creditors will report!) I should have zero balances on every card and I'm curious to see what happens. Sometimes I get nostalgic for the simple, old days when I thought paying your bills on time and responsibly managing debt was what really mattered! (LOL)
1*And usually to our disadvantage.Just the way they rigged it. 2*Same reason a burglar doesn't like lighting. 3*Con games are never funny. 4* Don't give them any more Ideas.
You BETTER NOT get any insurance on MONDAY!!! (one's that "PULL")...You are a worse driver today than you were last week...
