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It might help, but I suspect what will really happen is lenders will simply require higher credit scores to get the better loan rates.
I was thinking the same thing.
 

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A few years ago, I was floating my house on credit cards. Then as the free money was drying up, I decided to get a real mortgage. My CC FICO was in the 740s, but the model my mortgage lender used was in the 730s and I needed a 740 for the best rate. So I bought over $20k of Visa gift cards on my AMEX, bought money orders at Walmart with the gift cards, paid down a couple of credit cards that were closing their statement periods that week, had the lender rerun my credit score, and paid off the AMEX bill with the check from the mortgage.

Then AMEX, pissed at me for running up (and paying off) a $22k balance on a $30k card, canceled all my accounts.
Now my utilization is high because over $90k in unused (and apparently unusable, but I didn't know that until I used them) credit lines are gone for good, and my average age of open accounts took a hit too.

EDIT: Full disclosure, AMEX didn't exactly fire me for paying off a balance. They put me in Financial Review for running up a balance, and fired me for not giving an outside agency (one of the Credit Reporting Bureaus, for crying out loud) my tax returns in the Financial Review process. But they did fire me after I paid off the balance.

I was shocked when they sent me a 4506-T and instead of having AMEX's name on it, by signing it I was authorizing the IRS to send my transcripts to either Equifax or Experian, I forget which. Yeah, I'll get right on that, handing my tax returns to a company that specializes in selling peoples' personal financial information for profit.

I told the woman handling my Financial Review exactly why I'd never consider signing the 4506-T. Since then, I've learned that AMEX started sending out blank 4506-Ts (instructions from the IRS, right on the form, say not to sign it if any line is blank) so they can put Equifax's name on it after you sign it.
totally agree with you!
 

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I have only one question — what will change, if the bank accounts will be tied in to FICO score? Do you really think, that there is only one way of getting money nowadays? You are wrong, man. Like an example, we find a site, where we can take online loan. After logging in to this site, applying for a loan is very simple, I only will have to answer some questions and wait for the system to approve my loan in no time. That's all. Of course, if you want to find the most profitable for your loan, you will need to compare suggestion, which such sites offer. When I needed to make a present on brother's marriage, I had some finance problem, but online loan fixed them, likely for me. If you are interested in site, which saved me, it's ᐈ Kueski Préstamos ® Es confiable y seguro • Opiniones | Credit-10 . Let it better remain, like it is, because, like practice shows, innovations bring more harm, than profit.
 

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Just a few weeks ago FICO changed l once again. Personal savings is now to be figured into Scoring models.

110 million consumers could see their credit scores change under new FICO scoring
Published Thu, Jan 23 20209:45 AM ESTUpdated Fri, Jan 24 20202:45 PM EST

Megan Leonhardt@MEGAN_LEONHARDT





“There’s no big secret to having a good credit score, it’s just consistency and thoughtfulness and commonsense.”
Twenty/20
Americans who are struggling to pay off their debt could see lower FICO credit scores in their future, especially if they miss payments.
Fair Isaac Corp., the company behind the popular FICO credit score, announced the launch of its latest FICO 10 model today, Jan. 23, that will start incorporating consumers’ debt levels into their scoring model.

This comes as total household debt in the U.S. has steadily increased for about two years, and currently sits at about $13.95 trillion as of last September 2019, according to the Federal Reserve Bank of New York. That’s higher than the previous high of $12.68 trillion seen right before the 2008 financial crisis.
“This was bound to happen,” John Ulzheimer, an expert on credit scores and credit scoring, tells CNBC Make It. “The job of scoring models is to properly assess risk, not simply give people better scores as a default position.”
FICO estimates that about 110 million consumers will see a change of less than 20 points to their score under the new credit score model. Overall, roughly 80 million consumers will see a change in score of 20 or more points in either direction, upward or downward, FICO says.
 

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This is actually good news - the new FICO algorithms are going to use trend data to see if you're falling behind and penalize you for this. Hopefully they also use previous balance and payment to detect those of us who pay off our cards each month, regardless of balance.
 

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This is actually good news - the new FICO algorithms are going to use trend data to see if you're falling behind and penalize you for this. Hopefully they also use previous balance and payment to detect those of us who pay off our cards each month, regardless of balance.
In the past year I have obtained a Discover Card, an Amex Card, and a Bank of the West card. I have heard this new scoring model will benefit those like myself with low 700 scores, clearly in the good range. What gets me is how your Credit score is based on the current month when you haven't even had the opportunity to pay back current charges. I view that as a flaw in determining your credit worth as I am paying off my balances in full, the only exception being the Zero interest promotions on the AMEX & BW card
 

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I have a card that I use exclusively and it is automatically paid off at the end of the month. My card issuer even posts that I have an exceptional payment history, month after month. Experian has been consistently dropping my credit score while at the same time hawking credit cards to me with high interest rates due to my dropping credit score. I see a possible conflict of interest (no pun intended).
 

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I have a card that I use exclusively and it is automatically paid off at the end of the month. My card issuer even posts that I have an exceptional payment history, month after month. Experian has been consistently dropping my credit score while at the same time hawking credit cards to me with high interest rates due to my dropping credit score. I see a possible conflict of interest (no pun intended).
The scores like to see lots of history. One credit card is not much history even if you have had it for the full 7 years.
 

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The scores like to see lots of history. One credit card is not much history even if you have had it for the full 7 years.
The thing is, most of my stuff is paid off and I really don't need the credit. I only use the card for security reasons and secondly to garner points.
 

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It is obviously a system that perpetuates borrowing more money, needed or not.
It's unfortunately not possible to give this statement enough likes.
 
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