Here's the reasoning code in question: Department Store/clothing account balances too high in proportion to credit limit, okay same wording as I have seen for revolving accounts however it goes along to say consumers having high balances on these accounts in relation to credit limits are more likely of future deliquency, now this I have NEVER seen with reasoning codes related to balance/ratios. TU is using a different model totally regarding retail accounts very seperate from revolving accounts, I realize they all have their own scoring models of course, but I think TU is the only ones to seperate retail accounts. These accounts are zero now but haven't updated, curious to see what this effect will have. Your thoughts????????
I received same reply on my credit report, and don't understand why they say that when my retail cards are hardly used, and nothing over 100.00 balance. Anyone care to enlighten. Also, why is it that it is so much easier to qualify for a retail card vs. a credit card (visa/MC)?
Hmm, I guess I should pay my $200.00 balance on my $300.00 limit Sears card....... I am astonished that these CRAs can manipulate the scoring models even with or without FTC (or whichever entity) approval. Something as incredibly critical as consumer credit scores should be regulated, and IMHO, one scoring model should be used for the three big CRAs with none of this "psuedo" score crap. And no, I am not implying that the CRAs should have the exact same information as each other, which could lead to damaging ramifications for some consumers.
VJ Vj I believe you are 100% correct in regards to these "charge" cards and how they are calulated. Now I am thinking about the different scoring models that lenders see. Example credit card issuers see type A score, while mortgage lenders see tybe B score. My reasoning being looking over tri merged report from May, retail cards were about the same maybe a little lower but not by more than 2%, no mention of the retail scoring factor and score was significantly higher from TU at the time. Do you see something with this as well? Unbelievable what Tu is doing with the retail factor, I think it's best to have ONE card and zero balance period. Mutiple retail accounts with any balances can kill your TU score.
Re: VJ Right after VJ told us about retail cards being categorized as " charge cards". I went to TU site and disputed 4 retail cards, to have them changed to credit cards. Now all there is left to do is wait for the results.
Re: VJ Yes leo please keep me imformed of the dispute and outcome. I am doing this as well, however waiting for new report with balances at zero which they are but reported was dated 9/11, so after I see what zero balances do I will compare scores then go after the charge coding and see the final income. I predict an increase after zero balance, then another increase after charge coding.
