ADSOFT

GOT Cap1 Card, FICO WENT DOWN,CONFUSED!!!, Cap1 .. doesn't R

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I just got a new credit card from CAPITOL-ONE.

They just posted it on my credit report and my FICO went down

6 points, whats up with that!

I thought that if you had no credit cards and you got one

your score should go up.

I did notice that they forgot to post my CREDIT LIMIT and the TERMS on my report

!!!

... any suggestions.

[Edit by ADSOFT on Friday, May 2, 2003 @ 03:14 PM]

[Edit by ADSOFT on Sunday, May 4, 2003 @ 01:47 PM]

[Edit by ADSOFT on Sunday, May 4, 2003 @ 02:00 PM]

[Edit by ADSOFT on Tuesday, May 6, 2003 @ 09:39 AM]

[Edit by ADSOFT on Tuesday, May 6, 2003 @ 10:50 AM]

[Edit by ADSOFT on Saturday, May 10, 2003 @ 10:01 AM]

[Edit by ADSOFT on Saturday, May 10, 2003 @ 10:08 AM]

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FICO is a very strange creature. Your score went down because you have a new revolving tradeline with a very short payment history. This will lower your score. After 6 months of perfect payments, you'll see an increase in your score, providing you stay away from the credit limit, watch your applications for credit, etc... With FICO, you could have a charge off removed and your score will drop because now it's a deleted tradeline.

As a word of advice, don't worry about every single little dip and raise in your credit score. Your score could change daily. There's no need to torture yourself over something that doesn't mean anything. You'll be fine.

[Edit by DocDon on Thursday, May 1, 2003 @ 04:23 PM]

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Could it be because I havn't made my first payment?

Hey, I got 2 cards from these guys. I'm on the edge of going to

the higher FICO credit bracket. I'm applying for a loan, I don't want to wait 6 months.

My score was moving up well. Now I'm pissed.

12/31/02: EXP: 562

4/26/03 EXP: 623

5/01/03 EXP: 617: Bummer

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Don't get so mad. I had the same thing happen. New secured installment loan reported in March. It made my score drop 20 points. It has reported one payment for April. I paid all but 100.00 off after the 1st payment was due. The only other activity is for two cc's, but they are now over 6 months old, and not maxed out. So, I think it really was opening the new loan. I am waiting to see if that might bring it back up. My score went from 575 to 555. This is with exp it is now back to 560. Though the bank did a mistake and pulled my cr yesterday. It dropped again today to 558. But they are gonna take it back off, so they say!!! Anyway, the score is slowly making its way back up. In three weeks I would say it went up I guess about 5 points. EQU didnt drop when it was added, and since then that score has gone from 544 today it is 551. They seem to move the scores a bit faster.

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Your account information will update next month. And your score will more than likely go up because you have no late payment and a low balance to credit limit. I'm saying 6 months for a more solid history.

You have to keep in mind that this is not something that is done overnight. It takes a long time to build solid credit history. FICO considers a well seasoned account to be 15 years!

I bought 2 cars in September and my score went from 710 to 560 in one day. Do you think I care? No because I have an established history and I know with a few payment the scores will reflect accordingly.

Do you see? There is no magic number to reach. You keep moving from one tier to the next, but you have to pay the piper when you're starting new.

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Someone needs to sue the person that came up with FICO. They could say emotional distress as the reason!!!!!!!!!! People really do get so distressed over it. There is not much we can do to control FICO. All we can do is pay on time and hope for the best. I spoke to my cu today, and based on all the loans I have had with them, they said they would be willing to do a manufactured loan for me and bf. I said but I have a judgment still, and 3 charge offs, and my score is still not in the 600 mark, and won't be for a few more months. She said it don't matter. I paid them, and thats all they pretty much care about. Said even the charge offs wouldnt be a problem!!! We don't have the downpayment together yet, so we will wait, maybe in 6 months. If you stick with one bank or cu and keep them paid, it might be the best way to go and not have to worry about your FICO!!!!!!!!!!!

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<blockquote>Originally posted by utman17

Capital one does not post a credit limit, this does not help any.. I had 3 capital ones, and none of them showed a limit, just a balance.

</blockquote>

Can't you dispute that with the CRA's?????? It should show on your statment what your balance and cl are. I never used cap1, so I don't know why they would do that.

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<blockquote>Originally posted by utman17

Capital one does not post a credit limit, this does not help any.. I had 3 capital ones, and none of them showed a limit, just a balance.

</blockquote>

That's not a bad thing either. You can't be docked for having a balance too high to the credit limit when there isn't one.

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Hey, what does FRCA (you know, THE LAW) have to say about reporting limits to the CRA.

I'm sure the credit card companies have to report that stuff!

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Mine have only showed a high balance, I had one that had a 7500.00 credit limit, but on the reports it doesnt show it anywhere, just the balance and the highest balance.. I have now closed all 3, just to get rid of some CC's and for that reason too.

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Let me give you an example of how not reporting your credit limit can actaully help you.

In the instance of revolving tradelines, you want your balances to stay under 30% of the available credit or you will be docked for having high balances to credit limits. If the credit limit isn't reported, you can't be docked since they don't know what that credit limit is. This is what was explained to me by Cap 1.

Has anyone received any info to the contrary? It would be nice to clarify this.

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That is correct.

.... And that gives me an IDEA. I'm going to run my card up to 30% from top and just pay a little over the min.

I've heard of people refinancing. Paying off some credit cards and closing them. Leaving 1 card open with a moderatly high limit and it thrashes their score.

Why??

You are now up to %80 from your credit limit. If you would have kept the card paid off and locked in the safe your score would have gone up because because you didn't use it.

Hey, that give me another Idea. I'm going to get another card and not use it. ... that should increase my credit???

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That would work. I've got a Home Depot charge I haven't even used. It's reporting $0 balance / paid as agreed, and it's going on its 10th month.

The other thing I discovered is that some card issuers will label your account "closed at consumer request" even with a balance (you're obviously still repsonsible for making the payments). You can request Cap 1 to close your account,which they will as soon as your account reaches a $0 balance. Depends on the issuer.

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I just called CAP-ONE and asked that they post my upper limit.

They FIRST said, well we don't do that, maybe we will in 30 days.

I then said, hey its THE LAW that you report all and proper information....

They said. OK sir, let me write a correction letter and it should post to your report in 7-10 days. I then asked them if it would take 30 day or 10 days. They said, 10 days because its and error.

Should I believe these guys. I know legally I'm correct.

[Edit by ADSOFT on Thursday, May 1, 2003 @ 07:23 PM]

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<blockquote>Originally posted by ADSOFT

...Hey, that give me another Idea. I'm going to get another card and not use it. ... that should increase my credit???...

</blockquote>

Your score can also take a hit for having TOO MANY revolving accounts open. I've read such numbers as 5 or 6 being the point where that starts. How much ? I don't know.

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Credit limit is the amount you are allowed to charge on the card. Highest credit limit is the highest monthly reported amount for that card.

Example: Citibank gives you a card with a $1,000 credit limit. The most you've charged is $800, never more. Your account will read "credit limit 1000", "high credit 800". If you max it out or go over the limit by $300, it will read "credit limit $1000", "high credit $1300".

It's just a history that creditors use to see how you handle your credit limits. It's always best to stay around 30% of your credit limit for any length of time as higher balances to credit limits will lessen your score. Of course you can charge up to the limit, but be sure to pay it down as quickly as possible.

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<blockquote>Originally posted by crofttk

Your score can also take a hit for having TOO MANY revolving accounts open. I've read such numbers as 5 or 6 being the point where that starts. How much ? I don't know.

</blockquote>

That's where your debt to income ratio comes into play. If you make $50,000 per year and have $48,000 in credit debt, or even $48,000 available in open credit, creditors will look at potential for default. That's why it's a good idea not to apply for credit you don't need.

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Ya, my upper limit the limit on my credit card.

Anyhow, I called them and told them that the Fedral law says they have to report correct information.

He said that he was going to fill a dispute form, and it should be solved in 7 - 10 days.

Now, does anybody know if there are some situations in which they have to fix things in 7-10 days not the 30 day norm.

These guys got very very cooperative when I said the words "FEDRAL LAW".

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Yours was a different situation that didn't involve the dispute of negative account information, it was a customer service issue.

There is also the instance of having previously deleted information placed back on your credit report, in which case could take up to 90 days (ie: having a positive deleted tradeline replaced).

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Hey Doc I love you but,what are you talking about. My score went down, how much more negitive can it be than that!!!

I figure that the FICO calculation program has to know what the

credit limit has to be to compute whether you are below the %30.

?????

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<blockquote>Originally posted by ADSOFT

... does anybody know if there are some situations in which they have to fix things in 7-10 days not the 30 day norm....</blockquote>

Nothing I'm aware of but I think the guy was simply giving you an estimate of how long it would take to go through. I don't think he was referring to the law.

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<blockquote>Originally posted by ADSOFT

Hey Doc I love you but,what are you talking about. My score went down, how much more negitive can it be than that!!!

I figure that the FICO calculation program has to know what the

credit limit has to be to compute whether you are below the %30.

?????

</blockquote>

It does - Crap One cards can bring your FICO down with this.

Say that you have a $1000 limit. You charge $250 on it. In the "CREDIT LIMIT" column on your reports, it will now read $250 and high credit will ALSO read $250. Guess what FICO sees? A card at 100% utilization. Your score takes a hit.

OR they can do like they once did to me: I have an $800 limit. I've never charged over $700 on it. They had my credit limit listed as $500 and most charged as $700.

Gotta love cap one.

AD - your score went down because you have a NEW account, which lowers your "average age of accounts". It'll recover at 6 months.

[Edit by cookiemnster on Thursday, May 1, 2003 @ 08:53 PM]

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