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Why did my Fico decrease?


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I was hoping someone would be able to explain to me why my Fico score dropped.  I had a Fico score of 737 on April 29th.  Today my score dropped 14 points to 723.  I had a BoA credit card that was a closed account but had a balance of $22.  I paid it off.  When I looked at what changed on my report, Experian says I went from 8 accounts showing a balance to 7 accounts showing a balance.  Shouldn't have less accounts reporting a balance result in an increase and not a decrease?

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1) Which model of Fair Isaac modeling?

2) with seven accounts that have a balance, you aren't going to see much increase from where you sit at the moment...it is six accounts too many for optimal scoring.

3) NEVER rely upon a website to tell you what changed.  You need to actually evaluate each and every tradeline. 

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4 hours ago, creditcaper1 said:

It is FICO Score 8.  

 

I was honestly just expecting for my fico to stay the same but I didn't expect it to drop.

Remember that utilization looks at every single card on a report...there are overall ratios of both balance to total credit limit as well as the number of cards with a balance compared to the number of open accounts.  And if any account is closed with a balance, that to is a score killer.  But utilization also looks at the util% on each of those accounts, which is why someone who had balances on three or four cards and shifts them to another account via BT but maxes the one card out, it could hurt the overall score because of being maxed out...

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19 hours ago, creditcaper1 said:

I had a Fico score of 737 on April 29th.  Today my score dropped 14 points to 723. 

 

If you have a myFICO subscription, you cannot necessarily draw a cause/effect relationship between a score change notification and an alert about something changing on your report -- even if they're in the same message from myFICO.

 

Also, there are numerous updates to your reports that you don't notice.  Normally when I post that, people will swear "nothing else changed."  But you cannot ignore the passage of time, older accounts that fall off without you noticing, revolving and installment accounts (mortgages, car loans, etc) that update throughout the month, etc.

 

And most importantly, 14 points isn't a significant change (in either direction).  Whatever the three-digit number is just puts you into a risk bucket within a fairly wide score range.  Go lease a new car, for example, and it won't matter if you have a 725 or an 825, the cost of financing will probably be the same.  

 

BTW, human nature doesn't cause us to question why we have marginal score increases, yet those happen all the time too.  Somehow you'd reached 737 with no drama.  ;)

 

 

  

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