Score went down/Not sure Why?

[Anonymous]

Hey Everyone,

I pulled my EQ report on 5/28 Fico score of 642, Just pulled today 6/4 and went to 632. The only things that have changed was my Name was correctly spelled , Also I had 2 accounts that were showing charge-off on the 5/28. After faxing them court documents showing the 2 charge-off were actually included within Bankruptcy they changed them. I went through bankruptcy little over 2 years ago. One of the charge off's showed a balance of $640 now it's $0. The date of last activity on these accounts were 12/00 . The only thing that had changed is the reporting date which shows 6/03 . I really don't think that would bring my score down but it's the only thing I can think of. Everything else on my reports are exactly the same. Just can't figure out where the 10 points went. Im in the process of getting an Auto loan and need at the min. 640 FICO. Any Input guys/ladies, Unless the took 10 points off for the poor person that had to update my Name.

[kb9tbq]

It would not be because of the name update, it was linked to the bankruptcy being updated. Unfortunately sometimes - paid or zero update is not the best for the score. The reporting date should not have changed it, but I would not leave the possiblity out all together.

What you should of done, was disputed that the accounts where not yours instead of having them update the bankruptcy status.

Might wait a few months - and try just that. In the mean time you are going to want to find some other means to boost the scores, like bumping inquiries off the report. Or if you have other accounts like paid collections / charge offs to dispute.

[Anonymous]

Thanks for responding, Actually I just got off the phone with EQ and they stated at any given time the FICO score fluctuates 5-10 points. She stated that because the accounts updated to Included within BK that had no bearing on my score changing. I still have a few things disputed and scheduled to conclude around the 19th. Im in the process of getting an Auto loan and my score was a 586 a little over a month ago and my bank needed me at 640 and they would approve. So I have been sucessful at getting things updated and disputed and score has been getting better. It just suprised me that the score could fluctuate that much, I guess 5/28 was my good day and 6/4 was my bad day. The reason I faxed over just the documents releasing the 2 accounts of Charge-off is because I don't have the luxury of time, I need a vehicle soon. Otherwise I would have just disputed as Not Mine and wait out the process. Also my score came up because of the help of this board. Alot of nights are spent reading on this board and it's nice to have such a wide range of circumstance's and senerios to help people in different ranges of Credit.

[kb9tbq]

Ok, got you on the rush - yes, when items are still within dispute it does obscure the scores for a bit. And also regular updates from other creditors will change the scores up & down.

The best way to raise the scores fast would be to pay down on accounts that are over 50% maxed the lower the better. The idea is to spread the debt out evenly over serveral accounts, instead of holding one or two maxed.

But even this will possibly take up to 30 days to show up on credit report, just varies depending on how close your changes are to when the individual creditor reports data.

[Anonymous]

Actually the first thing I did was Paid off everything I owed on CC's , Also last month I finished a 4 year lease. The only problem im having is Kay Jewelers not updating my account to $0 balance as of yet. At least right now I owe -0- , Usually I tach up my credit cards each month and just pay them off when my statment came, I didn't realize that the OC reported at a time my Balance was close to my limit and that was killing my score because It looked like I was maxing out the cards, And the fact they Update usually once every three months. Thanks kb9tbq for the help, Hopefully in the next year or so I'll have some score's close to yours.

[kb9tbq]

May just be in the same position I was in last year, dealing with personal finance company at a higher rate, I actually got stuck with 15% interest on car loan, but since then I recently refinanced car loan over to bank and cut my interest rate in half. This may be the way you will have to go in the mean time - till you can get the increase in score you need.

[Edit by kb9tbq on Wednesday, June 4, 2003 @ 08:14 PM]

[Anonymous]

I did get approved through a finance company for around 15% but that was with my score around the 585-590 range. My bank can lock me in at 8.5% since it's a used Auto if I can get 640 or higher, Im just about there so I might as well wait it out. Also I would need them to just pull EQ since that's my best score, My bank only pulls EQ for auto's. (Suntrust bank). My EX, TU are 608, 560 right now so they still need quite a bit of work.

[kb9tbq]

<blockquote>Originally posted by brit2k

The only problem im having is Kay Jewelers not updating my account to $0 balance as of yet. </blockquote>

What you do about this is contact Kay Jewelers directly to get confirmation letter showing your accurate balance - they have to outline your account history just like they would forwarding information to the CRAs.

Included:

Name of Creditor

Account Number (make sure it matches the credit report)

Open Date

High Credit / Limit

Balance

Status - Current / As Agreeed

Then you could forward directly to the CRA, but would still. Just be sure to request rush on the update.

They could even forward a UDF Form to Equifax directly for a time time update to show zero balance. UDF (Universal Data Form) pretty usefull. I have the fax number should they need it & the forms - but would have to put them in contact with me directly. I can't give that information out in general.

If they send UDF - they have to update their tapes so it don't revert back, but this can update the file within a few days.

[Anonymous]

Actually about 2 weeks ago I called Kay for a full Transaction Activity, A CRS Inquiry Report. Unfortunatly It has a balance of $250 showing because I just paid off account a few days ago. I'll try calling again and talk to someone who can actually make something happen about updating. Hopefully that will put me where I need to be. Also had a quick question. I have a family member that's willing to put me as a AU, They have a Platinum card with 30K Limit with -0- Balance, But they have had the card for about 5 years. My question is would it show as a new account on my reports or whould it show that I have been an AU for the 5 years?

[kb9tbq]

When calling creditors to do with reporting, ask specifically for the credit reporting department. Might even try www.planetfeedback.com to see if you can't contact someone higher up faster to help with the problem.

On the Authorized User accounts, 5 years not to old for age, but the credit limit verses balance ratio will be sure to boost your score. And yes, your credit report will look duplicate to your friends credit report - it pulls in all the history with the account.

[Anonymous]

I'll try calling kay jewelers tomorow and see if they can update. Thanks for the info. It is easy to have my family member to just call their Card company and add an AU , Or does the card company send paperwork that has to be filled out.

[kb9tbq]

Nope all they do is call the creditor, tell customer service they want to add an authorized user and if they could please update your credit report to show this account.

Think they only require name and address to get it started on the tape system. You are no way responsible for the account, just simply ride the reporting.

Now understand that sometimes when you go to apply for major loans, these AU accounts can hinder you if the underwriting department for the bank or such includes this into your debt to income ratio. So at some point when you get your scores up good enough to apply for your own credit, you can shake this loose, by having the individual call back the company to have you removed.

These are really nice to get started, but I see this happen all the time, that the loan officer overlooks the A to the side of the tradeline meaning authorized user, most of them will figure it in to be your own individual account. Some know the difference but not all.

[Anonymous]

Definently something to think about, Maybe I should postpone the AU for now. I already have three revolving accounts with decent limits, I think anymore then that it might look like I really have potential to tack up some debt. Actually once I get the Auto loan I think I will focus on getting a Savings account and like some people do, Get a loan against that and go to the next bank and do the same. Ultimately I think Installment accounts add more value to a report, What do you think kb9tbq . I think your the only one that has answered any of my posts. Since you seem to know quite alot about Credit. I have one other question. When I filed BK a few years ago, I messed up on the paperwork the first time and it was dismissed. Two days later I refiled with everything and it went through and was discharged. Now I have 2 public records of BK in my EQ and EX and just one in TU. Am I just stuck with my reports like this, I disputed a few times but of course they come back verified. I thought that you can only have one instance of BK within your CR in a 6 year period.

[kb9tbq]

Well see, I happen to work for a credit bureau and get to see the ins and outs of the CRAs / Creditors / Consumer side of things. Very rewarding job - having learned so much in the last few years.

Now, with having 3 credit card accounts, that is the average you want to hold. But if you look at the scoring factors this only contributes about 10% to the over all score. Where as the Utilization contributes 30% to the score, so sometimes it is ok to break away from what one factor says to improve your odds even more.

Definatley installment loans are the way to go (least with banks and credit unions) leave off with personal finance if you can help it.

I learned of another good way to establish credit today. This will be a bit more out of pocket (in the long run you should make more back) but, if you get a loan from the bank you can turn around and put it right into a CD Account - this means you can borrow more than what you would of planned with a regular savings account backed loan, since the money won't be leaving the bank at all! Usually the interest rate will be more on the loan then the CD, but the loan is being paid down, and the CD is growing so in the end you will make out better. Definately worth checking out with a bank to see if it agrees with you.

On the bankruptcy - these are different. Rules say that you can't file bankruptcy twice within 6 year period, but if for some reason it gets dismissed, then filed again - there are counted again - reporting will allow more than two within 6 years. On this matter you are going to have to push along on your disputes until you find the right means to bump the information. Now if you have moved since the filing of the BK - then you might try to call the CRAs to remove the address, then go back and dispute "not mine". If this still does not work, then focuse on finding errors in the reporting, like assets / liabilities, status date. Not an easy task, but I have seen others accomplish just this.

Now remember you are still liable to disclose on applications if ask that you had filed bankruptcy - otherwise if they don't ask then you are ok with them not seeing it on the credit report any longer.

[Anonymous]

Cool, Thanks so much for the information. It's great to have someone to bounce things off of that actually know's the in's and out's of CRA's.

[kb9tbq]

I am still learning, so be easy on me. lol

My scores were not this high until the last year, had a bad student loan for a while, which I happened to let age off on its own - actually worked on improving everything else in the mean time so that all would fall into place at just the right time. Later then what I would of wanted, but I am still happy with the results.

Remember that a lender gets a totally different score than what you see, the best you can do is use one set available to you from each CRA, and improve on them using the reason codes. Usually over shoot by 20 - 50 points so you know your report will look the best on the creditors side of things.

Each lender uses different scores from each other depending on the industry. Auto Model / Installment Model / Personal Finance Model, they all are different.

Each CRA will sell FICO scores for each industy as well as their own developed scores for each industry. So it breaks down so many different ways that there is no one true score, but the most popular one out there developed is the FICO models sold.

When you look at your credit report / try to picture how it relates to the factors for scoring.

35% is affected by payment history (lates, collections...)

30% is affected by utilization (CL verses balance) should keep multiple accounts will low balances instead of a few accounts maxed.

15% is affected by how long you have had open accounts with creditors. So it is best to develop long term relationships with the creditors you have now, instead of jumping around and opening new accounts.

10% is affected by inquiries - more than 3 in 1 month is considered a risk - no matter if you were approved or not.

10% is affected by mix of credit. Good to have multiple types of accounts established over the years like revolving, installment, mortgage, auto...

Also balance transfer - this helped my scores the best, you don't want the lenders to see that you are willing to jump when there is a better rate. When you do balance transfers this is a dead give away. BUT if you transfer all but maybe $50 to the new account, then pay the remaining $50 off over the next few months by minimum payments (the credit report will not reflect that you did a balance transfer, instead it will show zero balance as agreed).

Ok - think that covers all the tricks that I can think of at this time, may just post some more later if I can remember what else.

[Anonymous]

I applied for the Auto loan with the bank a few weeks ago and that's when I knew my score. It was a 586 or something on EQ. I then got a report from Equifax and the FICO was only off maybe 2-4 points from what the bank told me. Im trying to shoot for 670 or around there before I apply again to give me a little room for error. It's just a waiting game now.

[kb9tbq]

Just though of one more to possibly help the score increase. On existing credit cards you may have - request a credit limit increase. Maybe charge back like $50 to the account for the best benefit.

[Anonymous]

I would ask for a limit increase but wouldn't that be another hard inquiry. Im working on getting around 5 or 6 off right now, Don't really need another. I did call Kay Jewelers and they were really nice, They faxed me over a COnfirmation Letter of my Account, Also they put me in touch with the person that takes care of Reporting and they put in an update. I faxed over the Letter I received to EQ. Also it was nice because on my Account I had one 30 day late on my report and the Lady at Kay Jewelers updated to have no derogatory's. Being nice and polite gets you so much further sometimes.

[kb9tbq]

Definately: That is great, yes alway being polite gets you more in the end.

I know one member here recently called for review to see if she could get credit limit increase. She was sly and told the person she was concerned about having any additional inquiries added to her credit report. And got lucky that they said ok, and was able to do the increase without pulling. So you might still be able to accomplish this with no further worry.