Jump to content

Odd reason given for score not being higher


Recommended Posts

In a letter from a smaller national bank with a Texas footprint, I got their letter advising as to why the score wasn't higher (~800 on 840 scale).  A couple were ones we have all seen (inquiries, recently opened accounts) but one was a new one for me...

 

"Lack of recently reported balances on revolving/open accounts"

 

Never mind that each of the accounts has had activity that triggered reporting so that nothing is in the tired and snoring category...that I pay everything save for one prior to closing is now included in the reasons for a lower score. 

 

I miss the days of people with common sense actually being the ones to review applications and create the scoring algorithms.

Link to post
Share on other sites

4 hours ago, centex said:

In a letter from a smaller national bank with a Texas footprint, I got their letter advising as to why the score wasn't higher (~800 on 840 scale).  A couple were ones we have all seen (inquiries, recently opened accounts) but one was a new one for me...

 

"Lack of recently reported balances on revolving/open accounts"

 

Never mind that each of the accounts has had activity that triggered reporting so that nothing is in the tired and snoring category...that I pay everything save for one prior to closing is now included in the reasons for a lower score. 

 

I miss the days of people with common sense actually being the ones to review applications and create the scoring algorithms.

Y'all gotta go back many, many decades. And common sense wasn't all that common which is why it's all just math (crunching statistics) now.

 

As an aside, the days when many creditors reported payments made, not just balances, are long gone. Prepaying everything except letting a small balance report may help scores, but when a financial institution looks at a credit report, either manually, or automatically, to get an idea how profitable you might be as a consumer, they can't tell if you spend enough to make it worth extending credit. No matter how high your score.

 

These days I just let balances report and PIF within the grace period.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Member Statistics

    • Total Members
      180,181
    • Most Online
      2,046

    Newest Member
    Hr96
    Joined
×
×
  • Create New...

Important Information

Guidelines