Why would a FICO score dramatically change?
by Author on Monday, September 6th, 2010 | 8 Comments
My FICO score has changed 20+ points month to month a few times this year. It just dropped 60 points from last month. I have no late payments and balances are paid in full every month. I also have not opened any new accounts. What would cause this volatility?
Thanks for all the possible answers. I should add that have not taken out any new loans nor have I applied for new credit. I looked at my credit report and there does not seem to be anything weird. This is very baffling. It's also frustrating as it seems impossible to contact the credit bureaus to get an answer.
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Cacee- FICO is so fickle. It’s difficult to give you a direct answer with out knowing more specifics regarding what is and isn’t reporting. Do you have any past credit issues? Any negative tradelines reporting at all? Any recent disputes to the credit bureaus? You need to really look over your report with a fine tooth comb. Look for changes in dates, amounts, limits, high balance, etc.
One possibilty that comes to mind:
A) You reached a different scoring tier. It’s possible when you reach a different "tier" that your score drops but will recover with age. This can happen from things like aging or the reaging of an account, limits, usage, status, etc.
You say you pay accounts in full in each but if the creditor actully list a balance (can happen depending on creditors timing in reporting) and doesn’t report a credit limit; FICO perceives that account maxed out thus can have an impact on scoring.
I do want to clarify two misconceptions given……checking your own scores and credit reports does NOT have an effect on your reports or FICO. One cannot be penalized for viewing their own information. Also, the ideal debt to credit limit on credit card ratios should be no more than 30% not 50%.
Feel free to contact me for questions or for further explantation. Good Luck!
have you applied for any loans? You should check to make sure no one else is using your SS# to apply for credit. Every time someone checks your credit then FICO can lower your score.
You indicate you pay your balances in full each month? If this is the case I am baffled because this would mean your credit report always shows a 0 balance and scores should not be as volitile as you describe with that case.
However, if you pay them in full even every other month the result could cause that fluctuation in scores. Credit scores are directly affected by the % of debt – credit limit.
Inquiries can affect the score but not to the level you describe.
Did you closed a credit card account or any other account?
Closed account is not counted by the credit bureau and because it was the oldest, you might unintentionally shortened your credit history. Insufficient credit history decreases your credit score.
Or you might purchased a car – that will decrease your credit score.
Numerous requests from credit companies will also decrease your credit score.
Or somebody might used your identity without your knowledge. For more information about ID Theft go to:
http://www.prepaidlegal.com/idt/landom
Good luck,
Marina Lando
President
Business Loan Quest
http://www.blquest.biz
If you are not holding a balance on your cards of 50% it can actually make your credit go down. If you want to build it up, keep a balance. I know it sounds crazy but that is a way to do it. It shows that you are trusted to have the credit, and that you can keep making the payments. Paying it off every month is like not having a card at all. If you insist on paying it off every month then let it stay with a balance for more than 30 days. This way the reporting is done showing a balance. On the other hand, congratulations for being able to do what most people don’t do. You should be proud to not have balances. Also if you are checking your score every month, just by looking at it you are getting dinged. You should do a tri merge once per year and check to make sure everything on it is yours. Then you will have 3 scores. Most mortgage lenders use the middle score. If you are above 620 you are doing good. Find a mortgage lender to help you read the report and go through with you to make sure your accounts are yours. They can pull your tri merge for you and they may charge you upwards of $40 dollars. If you find a good one who will educate you also, they typically don’t charge.
There are a lot of factors that can raise and lower your credit scores. PULLING your credit is the biggest factor. Don’t pull it and don’t let others pull it without your knowing. Click here for more details: http://www.web-mtg.com/credit/improving_your_scores.htm/?src=FICOChanges
One factor that is common is pulling by companies/businesses that want to offer you something to buy and/or finance based on your current credit. You can stop this with ‘Opting Out’. You can find out more about how to do this, FOR FREE, at my web site: http://www.web-mtg.com/credit/improving_your_scores.htm/?src=FICOChanges
You can pull your Consumer Credit Report (without scores) for FREE each year. This way you can monitor your accounts and see if there are any errors. You can only get this for FREE from one source – the only one the government allows: AnnualCreditReport.Com
To learn more about this go to my site: http://www.web-mtg.com/credit/credit_news.htm/?src=FICOChanges
If you have to or want to follow your credit on a monthly basis try ScoreWizard. This was the best service I found when doing my research.
Learn more here: http://www.web-mtg.com/credit/pulling_your_credit_reports.htm/?src=FICOChanges
Or, go directly here: https://www.econsumer.equifax.com/consumer/landing.ehtml?^start=&companyName=BFR_cpo&siteid=0039166835&clickid=qIrKRTkSnHknAlWjc-u-&orderSource=BFR
Hope this helps,
Elise Altergott, Principal Broker
Associate Mortgage: http://www.web-mtg.com/?src=answers
Associate Consulting: http://www.ac-fl.com/?src=answers
It sucks but mine did the same thing once– two bureaus dropped it over 60 points overnight for no apparent reason– i had printed the report before and it was completely identical. The only thing i can come up with is they periodically ‘check’ the scores for accuracy and adjust if neccessary.
My score went to hell after I bought my home!!!!!. I went from a 712 to 640 overnight.