Credit Score Screwiness

[ColdNoMore]

Like I'm sure many others do, I subscribe to myFICO (which covers Equifax/TransUnion/Experian) primarily for their alerts in case of identity theft or someone opening an account in my name, but the only "alerts" I get are ones showing a change in one of my accounts (almost always my credit card).

Since I do all my banking online, I will often just transfer funds from checking to my credit card pretty much as soon as it posts...instead of waiting until end of the billing period. I do this frequently, but only some of these show up as an "alert."

While I've had screwy alerts telling me my credit score has changed for years now, it seems that it mostly will go down when a balance is reduced and go up...with an increased balance. :oops:

I understand that they use complicated/detailed algorithms to establish these scores, that length of account and paying charges on time and regularly are important, but I just had one that I'm still scratching my head over.

The reason being, how in the heck can a $5 decrease in an account result in a score (Equifax) going down 10 points and a $1,455 account increase (paid off as quickly as it posted)...raise my score by 11 points?

It makes absolutely no sense. :ohdear:

[Bjeanj]

:shrug::shrug:

[davem4616]

FICO scores really don't mean that much to those of us that had the cash/resources to buy in The Villages

for years we were in the 800's...now periodically we fall into the high 700's even though we have zero debt and pay everything on time....my guess is that it's about the amount of credit that we have

big friggin deal

banks have no soul....I could care less at my age what the heck my FICO score is...I no longer need their money

[GoodLife]

Just freeze your credit on all three credit agencies, its free and easy to do online

Nobody can open up credit in your name if this is done. If you need to do an auto loan or new credit card, you can unfreeze them for a day or two

[OrangeBlossomBaby]

Because they're counting it as a debit and a credit. It doesn't even matter all that much what the dollar value is. It's the fact that you owe a debt - or the fact that you paid a debt.

I swear sometimes if you sneeze and they find out about it, you'll lose a couple of points the next day.

All in all though, your credit rating will fluctuate, but should stay within a range rather than always being on a specific number.

[Stu from NYC]

You might want to ask someone who works for one of the credit scoring agencies

[ColdNoMore]

You might want to ask someone who works for one of the credit scoring agenciesNormally I might agree with talking to an "expert," but due to all of the research I've done over the years I'm pretty familiar with all of the facets of credit scores, so I doubt there is anyone who could explain the algorithm that had my particular score go down 10 points... because I paid off $5. :oops:

Truth be told, I'm not concerned with my scores as they're plenty healthy and it's just kinda fun as a hobby watching them...and trying to figure out why they're doing what they're doing.

This one though, was the most extreme I've seen so I just thought...it would make for a good conversation/thread. :shrug:

[dewilson58]

Nope, don't care.

[toeser]

Like I'm sure many others do, I subscribe to myFICO (which covers Equifax/TransUnion/Experian) primarily for their alerts in case of identity theft or someone opening an account in my name, but the only "alerts" I get are ones showing a change in one of my accounts (almost always my credit card).

Since I do all my banking online, I will often just transfer funds from checking to my credit card pretty much as soon as it posts...instead of waiting until end of the billing period. I do this frequently, but only some of these show up as an "alert."

While I've had screwy alerts telling me my credit score has changed for years now, it seems that it mostly will go down when a balance is reduced and go up...with an increased balance. :oops:

I understand that they use complicated/detailed algorithms to establish these scores, that length of account and paying charges on time and regularly are important, but I just had one that I'm still scratching my head over.

The reason being, how in the heck can a $5 decrease in an account result in a score (Equifax) going down 10 points and a $1,455 account increase (paid off as quickly as it posted)...raise my score by 11 points?

It makes absolutely no sense. :ohdear:

Join the club. We have not had any debt for probably 30 years, except credit card charges which get paid in full monthly. I think I had one late payment (oversight) about 25 years ago. We own two homes outright. Yet our credit score jumps up and down by as much as 20 points, with seemingly no change in anything we do. It has never been higher than 816. Their algorithms need work.

Knowing I will never use credit again, I have frozen all of our credit agency accounts for safety.

[J1ceasar]

If your credit is over 750 . it just doesn't matter. You get the best insurance rates and loans . period. It actually is better to charge big amounts so your credit is active . as they will cancel cards otherwise.

[FredJacobs]

Your FICO score is affected by how much of your total credit line is being used. Add up the total credit line from all of your credit cards. The closer you get to 10% of that figure the more your FICO score goes down. Pay it off and it goes back up. I made a major purchase and asked if they take credit cards (I always want the points if I can get them). My FICO score went down by 30 points and back up when I paid the bill. By the way, your score going up or down by a few points does not affect your credit worthiness. It's when your score crosses over into a different range that does it.

[ProfessorDave]

Interesting fact. FICO scores are not based on absolute numbers; they are calculated on percentages. For example as an extreme, if I only had $10 of available borrowing on a credit card each month - and only used $1 of it (10%) - and paid it off on time -
- I'd have a higher FICO score than somebody who had $20,000 available credit - used an average of $10,000 per month (50%) and paid it off on time.

[dewilson58]

If your credit is over 750 . it just doesn't matter. You get the best insurance rates


:ohdear:

Not true. Your claim history impact rates.

If you have 825 & significant claims, your rate will be higher than someone with 745 and no claims.

[ColdNoMore]

Your FICO score is affected by how much of your total credit line is being used. Add up the total credit line from all of your credit cards. The closer you get to 10% of that figure the more your FICO score goes down. Pay it off and it goes back up. I made a major purchase and asked if they take credit cards (I always want the points if I can get them). My FICO score went down by 30 points and back up when I paid the bill. By the way, your score going up or down by a few points does not affect your credit worthiness. It's when your score crosses over into a different range that does it.

That makes perfect sense if it were true, but at least in my case...it's not.

Here's the alerts I mentioned in my original post.

As I said...goofy and weird. :oops:

[Pedrocarrasco01@yahoo.com]

Your FICO score is affected by how much of your total credit line is being used. Add up the total credit line from all of your credit cards. The closer you get to 10% of that figure the more your FICO score goes down. Pay it off and it goes back up. I made a major purchase and asked if they take credit cards (I always want the points if I can get them). My FICO score went down by 30 points and back up when I paid the bill. By the way, your score going up or down by a few points does not affect your credit worthiness. It's when your score crosses over into a different range that does it.
I purchased a car last year and yes I paid it with my credit card, you should have seen the face of the manager when I said here put in the card!!<he started to say there is no way that it will go through, I told him just try it, his face dropped when it was approved, he said he could not understand why I was willing to pay a much higher interest through the card, I explained to him that I was going to get an additional 1.5% by doing it and it would be paid when the bill came through, his only response was “Brilliant”
:boom: :boom:

[Pedrocarrasco01@yahoo.com]

That makes perfect sense if it were true, but at least in my case...it's not.

Here's the alerts I mentioned in my original post.

As I said...goofy and weird. :oops:
It is, but anything over 750 score is wonderful, you will get the best rates, don’t forget that you are looking at an average over the 3 credit sites some of their algorithms are different so the numbers will vary.
:welcome: :welcome: :coolsmiley: :coolsmiley: :clap2: :clap2:

[JoelJohnson]

Just freeze your credit on all three credit agencies, its free and easy to do online

Nobody can open up credit in your name if this is done. If you need to do an auto loan or new credit card, you can unfreeze them for a day or two

Also go online to social security and set up a PIN to keep someone from getting your SS money.

[toeser]

I purchased a car last year and yes I paid it with my credit card, you should have seen the face of the manager when I said here put in the card!!<he started to say there is no way that it will go through, I told him just try it, his face dropped when it was approved, he said he could not understand why I was willing to pay a much higher interest through the card, I explained to him that I was going to get an additional 1.5% by doing it and it would be paid when the bill came through, his only response was “Brilliant”
:boom: :boom:

I think it's a miracle you found a car dealer that would accept a credit card on a car purchase. I try to use a card for everything, and a lot of companies won't take them on larger purchases. My primary card pays 2%. I average about $700 per year in cash back.

P.S. Congrats.

[Rodneysblue]

:popcorn:

[theruizs]

I purchased a car last year and yes I paid it with my credit card, you should have seen the face of the manager when I said here put in the card!!<he started to say there is no way that it will go through, I told him just try it, his face dropped when it was approved, he said he could not understand why I was willing to pay a much higher interest through the card, I explained to him that I was going to get an additional 1.5% by doing it and it would be paid when the bill came through, his only response was “Brilliant”
:boom: :boom:
Then he was fired the next month when the owner was hit with a 2-3% fee for taking the card.:a040:

[17362]

I think it's a miracle you found a car dealer that would accept a credit card on a car purchase. I try to use a card for everything, and a lot of companies won't take them on larger purchases. My primary card pays 2%. I average about $700 per year in cash back.

P.S. Congrats.
Yes congrats for sure. I try to use mine and I have found it the companies will only allow things under 3k (as an average.)
I also heard that in February 2020 the credit scores where under going another alga rhythm change and ya I have seen the fluctuations you spoke of personally as well.
It’s not the simple calculation it used to be when it came about to life.
Humans... go figure... they create something for good then in the name of innovation they make it complicated, they can’t just leave it be and enforce it as is.

[charlieo1126@gmail.com]

I think some people on here need a new hobby, maybe get out and walk some . The only time I’ve ever had any interest in my credit score is when I’m m buying a new house or car ,

[ColdNoMore]

I think some people on here need a new hobby, maybe get out and walk some . The only time I’ve ever had any interest in my credit score is when I’m m buying a new house or car ,

It's a piddly $20 a month ($19.95 to be precise), or 1/5 of a single hand of blackjack...one of my other "hobbies." :D

[manaboutown]

I think it's a miracle you found a car dealer that would accept a credit card on a car purchase. I try to use a card for everything, and a lot of companies won't take them on larger purchases. My primary card pays 2%. I average about $700 per year in cash back.

P.S. Congrats.

In my experience even MB and BMW dealers would only accept $5K on a credit card toward the price of a new vehicle - and I always try! lol.

[Curtisbwp]

Dont sweat the small stuff. Since my mie 20s my credit snore has been over 800. I do not worry. I can walk into a new car dealer and leave 30mins later with 2 new cars. I do not worry ablut day ti day tracking.

[DeafDeaf]

Even I have zero credit card balances, they keep sending me if I am interested in new credit card offers! Sigh!