The truth about FICO

Back in the day, when I was carrying debt, I asked the FICO simulator what would happen if I paid my debt down. The answer was that my score would rise
to 782-822 points.

Sure enough, when I paid it all down in October 2002, I reached the magical summit.

For a while (albeit brief) FICO said:808 ! Because your FICO score is exceptionally high, there are no actionable negative factors present with your score. Continue to manage your credit as your currently are doing to maintain your very high FICO score

I celebrated. I had figured out FICO! I had no negative codes!

Alas. The system is not designed to allow you to retain super high scores. Something in the algorithm deducted points again, EVEN THOUGH MY REPORT DID NOT CHANGE. Suddenly (although I did not add any new cards) I now had "too many accounts" And, I can't get simulator to go above 800 with any scenario.

Now, as someone who started this quest at 630 I understand that I have nothing to whine about. 778 is a great score. I can't complain. I get that. It just irritates me that it will not go up unless I take on debt and pay it off again.

I don't think that I am paranoid to believe that the system is stacked against us. The evidence is clear IMHO and includes: 1) Cards that post immediately when we add debt, but take months to report when we pay it down. 2) Citi AA, and Cap1s (among others) cute trick of not reporting limits 3) Hard inquiries appearing that we did not initiate 4) CC companies luring unsuspecting people(Not we savvy creditnetters) to make large BTs knowing that the high ratio on a single card will nuke the score etc. etc. etc.

Through extreme diligence and persistence I figured out how to reach an 800 score, but I can't figure out how to keep one. (Except on Exp FAKO)

I'm curious. Has anyone here successfully maintained a FICO score in the 800s?

 

I saw the bell curve theory and I found it very interesting. You may have something there. Just as your SAT score varies by the competition you face when you take it, I am sure that FICO continually compares you to all other consumers on that day. Also, the infamous power point demonstration on FICO scoring shows how fickle the model can be.

I suppose the answer to the question posed to me is that after focusing so intently on this credit stuff
for so long, the Sherlock Holmes in me is intrigued enough to want to figure it out and to reverse-engineer it. I am totally fascinated by the process.

If I wasn't concerned about identity theft and incorrect information showing up (like mysterious hards that I didn't initiate!) I would probably get over my addiction/compulsion and only check my score every 6 months or so. But because of the above-mentioned reasons, and also because I know that a single incorrect piece of info can plummet one's scores, I check my Exp CE almost daily and EQ and TU about once per month.

Last (but not least) if I gave up this addiction I would miss all the interesting posts I read here!

Cheers-
Calypso

 

Hey George--

It is VERY hard to figure.

Who knows? Strange factors could be pulling your score down. Since there are so many scoring cards
it is impossible to calculate.

I end up seeing a lot of credit reports and I find it hard to believe that you are a greater credit risk than a 24 year old with 2 credit cards and a 745 score.

That's why boards like this exist, so that we at least can have a fighting chance. As I've said before, I used to believe that paying all of your bills on time would result in a great score and that is blatantly false! You have to understand how scoring works and adjust your behavior accordingly. I used to be so dumb, that I thought it was best to keep all your balances on a single card. The interest rate was low. It worked for me, but it DESTROYED my score. I didn't know to check that credit limits were reported accurately, etc. etc.

I feel so much better with some knowledge of how it works. Hang in there. Haven't we all seen huge point shifts? One morning you will wake up and be 40 points higher.