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Cap 1-Lack of CL lowering scores


Swede
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I can't find the thread where this was discussed, it was probably in the temp forum but, the discussion was whether Cap 1’s failure to report CL affects the score. KB9, you stated that your boss had spoken to someone @ Fair Isaac and that if the CL was missing, the account will not be included in the FICO score. This is misinformation, as Cookie posted and from the EQ position paper I posted, the score substitutes the CL for HCL skewing the score.

If, for example, Mr. Deadbeat has a Cap 1 account with a CL of $1000, HCL of $500, and current balance of $250 the scoring will substitute the missing CL of $1000 for the HCL of $500. That will show a utilization of 50% whereas the truth is that it's really 25%.

This is one of the reasons why Christine over @ Bayhouse recently filed suit against Fair Isaac. The complaint can be found here and twice it references the flaw of the missing TL's and utilization

http://forum.creditcourt.com/discus/messages/803/1093.html

55. On or about April 7, 2001, BARRY PAPERNO admitted to plaintiff that FAIR ISAAC was using the amount reported as “high credit” instead of a missing “credit limit” to calculate the balance/limit ratio.

74. Upon information and belief, FAIR ISAAC substituted the amount reported as “high credit” for the “credit limit” (willfully omitted by CAPITAL ONE and others) to calculate plaintiff’s balance/limit ratio, lowering her credit scores.

Here's the position paper I posted as well from EQ talking about the importance of reporting ALL date and it's devastating effect on consumer scores when information is missin EQ Position Paper

[Edit by Swede on Friday, May 9, 2003 @ 06:18 PM]

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Tell me about it. I cleaned up 9 of 11 neg. TL on my report. My fico was sitting at 606,626,610. Got a cap-one I'm went to 540,550,617.

The reason I got the CRAP-ONE was to raise my score because the simulator said I would be at 650.

I called crap-one and told them that it is against the law to report erronous information. They said they would mail me a letter with my limit on it if I wanted to apply for a loan.

I told them I would accept that but that I also wanted to have them post the limit or I was going to sue Cap-One, and the guy who took my call and his manager personally for not taking my request. They said they would get on it: 7-10 days. W'ell see.

My limit as of 30 minutes ago was $0.00 on PG, and if I close the card my FICO will go down 1 pt. You gotta luv that!!

I'm the on who started the POST "ADSOFT", it was in this area, go back with in the last 10 days: something like, "GOT CREDIT CARD,FICO WENT DONE, WHAT'S UP WITH THAT":

... how do you guys embedd the links into the posts, I'll find it mayself and link to it on this post.

... sorry about the spelling, I have the worst key board and I'm working off a laptop. I'm getting cable in 2 weeks.

[Edit by ADSOFT on Friday, May 9, 2003 @ 06:33 PM]

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Some of the guru's on Creditnet said getting a subprime card will be viewed by lenders as a negative as well as lowering your FICO. Don't know how FICO would score a "subprime" card though.

ADSOFT, those scores will probably rise over time and eclipse what you had before you got the card. Sometime, myself included, we look too much at the short term. Though, I suppose if you are setting yourself up for big purchase (house, car) the short term does matter.

Well, it looks like we are back where we started then.

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On my part it would of been based on if capital one was leaving out the credit limit all together; but if they are actually completing the credit limit field (with the high credit amount) then this will still keep it affecting the score formula.

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ADSOFT, I think you have given me an idea.

My credit limit to my Zales/Citibank card was 600 clams but with my downpayment, they gave me 2k. The problem is that my credit limit stayed at 600 clams while I am vastly over my credit limit with a balance of 2k.

I can call up Citibank and get a supervisor on the line and quote them the FCRA about reporting erroneous information that my credit limit should have originally been 2k because that is in reality what I got as credit. If not, then I am sending a CMRRR stating that they got 30 days to change that or all hell is going to break loose.

And I will specifically tell them not to pull a credit check on me because I am not giving anybody my damn permission or consent to check my credit.

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<blockquote>Originally posted by kb9tbq

On my part it would of been based on if capital one was leaving out the credit limit all together; but if they are actually completing the credit limit field (with the high credit amount) then this will still keep it affecting the score formula.

</blockquote>

That's what we've been saying, CAP 1 DOES leave on the CL field and the score uses the HCL as a substitute. I don't know how much clearer it can be really.

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<blockquote>Originally posted by ADSOFT

Not on mine, I just hooked up with PG and they are showing N/A,

What's up with that?????

</blockquote>

Well you just got your card so how you probably don't have a HCL yet. HCL is the most ever owed, if it's newly reporting that might not yet be showing.

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<blockquote>Originally posted by ADSOFT

So what do I do, go jack the card up to the top?

By the way, I thought your where going to go change?????

</blockquote>

I'll consider it, it's the weekend- I like having a nice buzz throughout it..... :boggle:

The short-time personal solution would be to max out the card, however, it does nothing for all the other people out there thinking they're rebuilding with their Crap 1 card. Or buy something expensive, keep it for the next billing cycle to make sure it's reporting and then return it......

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So once I max it out do I keep it there for 30,60 days? ... Then what, pay it off?

...let's not worry about the lawsuit at the moment.

...If you're going to wear that for the weekend that's cool, I like to see some skin, that way there are no surprises!!!!

[Edit by ADSOFT on Saturday, May 10, 2003 @ 11:59 AM]

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Well this just goes to show that you learn something new everyday!

After reading through this thread, I decided to take another look at my 3-in-1 from TrueCredit.com, sure enough, the Cap One DH and I got nearly a year ago only shows the high credit on all 3 bureaus, not the actual limit. But, we've nearly hit the top on it during the time we've had it. Thankfully we pay as agreed and more than the minimum, so it is going back down steadily. I'm going to have to write a letter to Cap One I see, as my real motivation is for accuracy. :)

This has to be one of the most useful sites I've EVER stumbled upon! :D

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Hey, can you do me a favor, can you check an see if the high credit would get updated each time you hit a new high and how long to post on your bill.

You know if you had used 800 max and this month you use $900, how long would it take to see $900 on the account.

That would be useful info.

I'm thinking a starting a class action complaint!!

I'm going to be bummed if I max the card out this month and it doesn't show until 90 days or something stupid like that

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I just looked on my PrivacyGuard and I found some other stuff the Capitol one isn't reporting

EQU, EXP, TRANS

TERMS: n/a, REVOLV, minimum

HighBal: $65 ,65, 65

Limit n/a, n/a ,n/a,

that is supposed to be table: Need to learn to embedd html.

This might explain why my Exp only went down 6 pts, that's the only place they posted REVOLV

I'm afraid to check TU

[Edit by ADSOFT on Saturday, May 10, 2003 @ 11:59 PM]

[Edit by ADSOFT on Sunday, May 11, 2003 @ 12:01 AM]

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<blockquote>Originally posted by ADSOFT

Hey, can you do me a favor, can you check an see if the high credit would get updated each time you hit a new high and how long to post on your bill.

You know if you had used 800 max and this month you use $900, how long would it take to see $900 on the account.

That would be useful info.

I'm thinking a starting a class action complaint!!

I'm going to be bummed if I max the card out this month and it doesn't show until 90 days or something stupid like that

</blockquote>

I went and did some digging about this, it was reported right away, I can see that by looking at the statements and comparing them to the dates reported to the CRA's.

[Edit by almost_there on Sunday, May 11, 2003 @ 02:01 AM]

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