My credit score dropped 20 points this week because...

[MikeThomas]

I just don’t get all the anxiety over fluctuations in credit scores.  The ones we can see aren’t even the ones the banks use to make lending decisions.

[Ali Gator]

On 6/12/2024 at 11:05 PM, BenjaminNicholas said:

It's all a part of the FICO game.  Just wait a bit (45-60 days), it'll rebound.

Ultimately, if you don't have a healthy mix of different kinds of credit, one or two closures will drastically affect you.

Also, know the difference between what a charge vs credit card does for your open credit statistics. 

Good luck!

You were right.

It's been 90 days, and sure enough - my credit score has rebounded almost to the point it was before on CreditKarma.  I say 'almost' because I did lease a new car in August (and returned the one I had because the lease expired), and that slightly hit my credit score (the lease amount is just under $30K). 

[PhileasFogg]

6 hours ago, BenjaminNicholas said:

If you have assets on paper that are somehow verifiable, you can easily get a car loan/lease.  Same with a home.

Yeah…but then, with interest rates where they are, why borrow?   I just need to earn 6% and spend 4% to double my estate to my grandkids in 30 yrs.  If rates are over 6, I wouldn’t borrow.   If they were close, I wouldn’t borrow.  If they were really low, I might.  Plus, borrowing gives the illusion of “affording” more…plus, I would never give some car dealer insight into my wealth.  

I just find it odd that my recurring income goes to zero and my score hits the max six months later. 

[+ BenjaminNicholas]

13 hours ago, PhileasFogg said:

Yeah…but then, with interest rates where they are, why borrow? 

But this has nothing to do with the point of why I replied.

The strawman strikes again!

 

[+ BenjaminNicholas]

18 hours ago, MikeThomas said:

I just don’t get all the anxiety over fluctuations in credit scores.  The ones we can see aren’t even the ones the banks use to make lending decisions.

If you can get access to your FICO 8 and 9, you will be able to keep up with what about 90% of lenders use.

That and Vantage, which is a little more difficult to access.

[+ Vegas_Millennial]

14 hours ago, PhileasFogg said:

I just find it odd that my recurring income goes to zero and my score hits the max six months later. 

Income is not a factor in credit history or credit scores.  A high credit score is not an indicator of good financial habits.  It is only an indication of managing debt well.  Someone with good financial habits who saved and invested consistently, and managed to save to pay cash for all expenses including transportation and even a house (it's not unheard of to save to buy a 2 bedroom house in rural or suburban areas with cash in your mid-20s), will be financially better off than 99% of other people yet possibly have a low or even no credit score.

 

Edited yesterday at 05:18 PM by Vegas_Millennial

[MikeThomas]

Some fun reading…

FICO Score 8 and Why There Are Multiple Versions of FICO Scores| myFICO

WWW.MYFICO.COM

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FICO Score versions include both model updates and industry-specific FICO Scores. At myFICO, we offer the FICO Score versions that most lenders use to...

 

[+ BenjaminNicholas]

3 hours ago, MikeThomas said:

Some fun reading…

FICO Score 8 and Why There Are Multiple Versions of FICO Scores| myFICO

WWW.MYFICO.COM

---

FICO Score versions include both model updates and industry-specific FICO Scores. At myFICO, we offer the FICO Score versions that most lenders use to...

 

I really find the credit bureau system to be fascinating. 

They've always been cloaked in a little bit of secrecy, but if you take the time to know their specific rules, you can use them to your advantage.  I've cleaned up many a friends credit reports using letters and time-specific punting.

That said, I'd prefer to see them more regulated, as they have nearly unchecked power within the system.