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My TU drops 25 pts, putting a pause on my BMO app


Sidewinder
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My TU score (FICO 08) went from 760 to 735 when they reported my personal finance accounts (car loan) going from $212 to bubkes.

 

Prior to this revoltin' development, I'd been putting off apping the BMO Harris cash back mastercard until after my Discover statement closes (on the 18th) and reports the $1,700 dent (bringing bal down to $3K, against a $7K limit).  I'm also still waiting for the $5K increase from BOA to show up on TU and EQ (756); it added 8 points to EX (788).

 

HOWEVER - I suspect that the big Disco payment & 5K BOA increase, even taken together, won't be adding 20 let alone 25 points.  And the reporting & score impact of the closed car loan to the other two CRA's happens when?  (See Matthew 24:36.)

 

So... apping the BMO Harris cash back MC now — with EQ 756, TU 735, EX 788, roughly 12% util across roughly $155K in credit lines... worth a shot?

 

: /

 

 

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Equifax just fell to 724.

 

What the hell is the reasoning behind designing the algorithm so that you get a 20-30 point *penalty* for having paid off a 6-year loan exactly as agreed?  (I've seen similar-sized impacts from new collections for petesake.)  I know it's because the "credit mix" component has been hit, but really; what made them determine that credit mix is that humongously important?

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I think it's because the scores don't rate you based on some theoretical model of financial excellence,  instead,  they rate you against the financial behavior of those with similar financial characteristics. To some extent, you are being rated against the lowest common denominator, so anytime you do anything different - even when it's responsible - you get slammed.

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C'mon man...how does someone here for more than fourteen years not know about segmentation? 

 

Previously, you were compared, risk-wise, with others who had an open loan product.  Now you are in a different bucket. 

 

All of a sudden, those who asked why I wanted a short note on the Spider understand...my ego wants those eight to ten points I would otherwise have lost for paying off the F-Type.  I've been through the windows of losing an open note and, worse, having the closed loan fall off of the report, costing me age. 

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8 hours ago, centex said:

C'mon man...how does someone here for more than fourteen years not know about segmentation? 

 

Previously, you were compared, risk-wise, with others who had an open loan product.  Now you are in a different bucket. 

 

All of a sudden, those who asked why I wanted a short note on the Spider understand...my ego wants those eight to ten points I would otherwise have lost for paying off the F-Type.  I've been through the windows of losing an open note and, worse, having the closed loan fall off of the report, costing me age. 

 

Which, is what I said basically.

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