Outline · [ Standard ] · Linear+ 1/6/04 - TU FICO score with 72% B/L, charge-off -- 664, AFTER deletion of the chargeoff: score went DOWN 18 points!

[Christine]

BEFORE the deletion of the paid charge-off, the FICO score was 664

Top Positive Factors

The time since your most recent past due payment is old or unknown

There is evidence of a late payment on your file as recent as 76 months ago.

You demonstrate a relatively long credit history

Your most established credit obligation is 89 months old and your newest credit account was opened 4 months ago.

Top Negative Factors

Evidence of being seriously late or having derogatory indicators/remarks on your credit obligations is being reported on your credit file

You have evidence of seriously delinquent behavior (60 days past due or greater).

-- This charge-off was a credit card opened in 96, shows as paid in 2000. After the deletion, the score went down to 646 because the average age of revolving accounts went down.

The proportion of balances to credit limits on your revolving/charge accounts is too high

The proportion of balances to credit limits on your revolving/charge accounts is 72%.

[Christine]

After the deletion of the paid charge-off, the score went DOWN 18 points to 646


Top Positive Factors

You have no late payments reported on your credit accounts

You have 0 accounts that show evidence of missed payments in the past.

Top Negative Factors

The proportion of balances to credit limits on your revolving/charge accounts is too high

The proportion of balances to credit limits on your revolving/charge accounts is 72%.

-- The ratio has not changed.

The length of time your revolving/charge accounts have been established is too short

This factor is based on the age of the revolving/charge accounts on your credit bureau report (the age of your oldest revolving/charge account, the average age of your revolving/charge accounts, or both).

The length of time your accounts have been established is relatively short

Your most established credit obligation is 88 months old and your newest credit account was opened 4 months ago.

[Christine]

This is an excellent example of FICO absurd credit scores.

It takes a long time of reviewing many credit reports with the FICO scores and the score factors to be able to determine WHY scores change.

In this case, I'm certain that the deletion of the charge-off moved the report into a different scoring model.

I think there are ten models for different report profiles and since Fair Isaac does not disclose which model was utilized to score a report, I have very little info. And that's why I often can't predict what will happen if an old derogatory account is deleted.

I had NO idea that the deletion of this charge-off would lower the scores, we still have 88 months of account history. However, the FICO scores apparently give a lot of value to REVOLVING account history, see the new score factor 3.

Since I spent hours analyzing these reports, I have a better idea now what will happen for this particular type of report ONLY. There are hundreds of scenarios.

Live and learn ... and be careful what you ask for!

You may want to send this topic to your elected officials and request their comments.

I still have those reports and my client was a Credit Activist, so I can document everything.

[Christine]

Some more thoughts about scores. In the public credit forums you will find MANY false statements. And I've been contacted by attorneys who want to sue Fair Isaac for including zip codes in the scores, all kinds of wild stuff.

Assuming that the published score factors provided by Fair Isaac are in fact ALL score factors utilized:

There are NO score factors:

"high risk zip code"

"undesireable skin color"

"high risk nationality"

"too few accounts with balances" (many people still think it's GOOD to have balances reported on many credit cards)

Here are the score factors:

http://www.bayhouse.com/FairIsaac-FICO-risk-factors.shtml

http://www.bayhouse.com/FairIsaac-NextGen-risk-factors.shtml

While Fair Isaac and its "expert employees" have lied to me in the past, I don't think they'd have the guts to utilize secret score factors including personal data.

There are MANY things wrong with credit scoring, why not focus on what's real and documented?

Please read my submissions to the FTC and FRB for details.