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DCU June FICO is Up


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Score: 816 (unchanged from previous month)

Factors affecting FICO score: (1) Time since most recent account opening is too short. (2) Too many accounts with balances.

 

Score states it was pulled: 06/25/2021. I'm going to utilize a Credit Karma Equifax report pulled 06/23/2021 for this discussion.

 

Point (1) I can accept/understand, since my most-recent account is a mortgage that is 1 year, 4 months old. However, point (2) is the one that I cannot accept/don't understand. l don't know if this particular FICO model has a "memory" and will ding you if you've had a few revolvers report a balance a couple times in a row (always paid-in-full before the due date, but balances after this fact sometimes get reported). But as of 06/23/2021 (with no changes between then and 06/25/2021), I had only one credit card (bank card) account (revolver) report a balance of $791 with a credit limit of $14,900 (5%). The only other account to have a balance was my mortgage account (installment), which does report a substantial balance (current balance is 97.5% of the original balance).

 

Will someone educate me about why this FICO model (or any other FICO models that do as well) thinks one credit card balance and perhaps a mortgage constitutes too many accounts with balances? Additionally, how old does your newest account need to be before it stops dining you for having a recent account opening being too short?

 

Thank you!

 

 

       
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18 hours ago, policebox said:

Score: 816 (unchanged from previous month)

Factors affecting FICO score: (1) Time since most recent account opening is too short. (2) Too many accounts with balances.

 

My observation over time is that the closer you get to the top of this score model, the less the score factors describe reality.  But on this model, the score factors don't do a good job no matter where your credit falls.

 

An algorithm (or human) that sees an 816 on this model (which only goes to what, 818?) isn't going to ask any questions about how many of your cards have balances or when you last opened an account.

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