FICO vs Fako scores

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MemberSince99
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FICO vs Fako scores

Postby MemberSince99 » Mon Sep 17, 2012 11:11 am

Hi All,

I haven't been on in a while as I went and got a life. Anyway, I do have new items to share, and will periodically post as I learn things that may be of interest to you.

What I learned recently is one of the reasons that FAKO scores differ from FICO scores. In this case, my TU FAKO is well below my TU FICO (between 50 and 70 pts). Today on CK I got my TU FAKO, and it went up 5 points. The reason given is that 2 inquiries fell off, from 2 years ago. I knew they were about to as I had a couple of inquiries 2 years ago (got a car and apartment then).
Now as you know or may know FICO does not count inquiries into your score after 1 year. However from what I saw it would appear the TU FAKO used by CK DOES count them until they fall off after 2 years.

I just wanted to pass this on as I know many are wondering why the scores can be so different and this appears to be one of the reasons for this.


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t528491
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Postby t528491 » Mon Sep 17, 2012 12:36 pm

Interesting observation.
I noticed something else about FAKOs today - once my new Amex Zync was added, my score went down 51 points. :eek: My AAoA only dropped from 5 months to 4 months, so I don't think that's what made my score go down. I guess the FAKO scoring model doesn't favor new cards?
[size=80]
02/12 Authorized user on Chase Freedom ($5000)
08/12 Discover It ($1500)
08/12 American Express Zync (NPSL)
12/12 NFL Visa ($500)[/size]

[size=60]Future cards:
Citi Forward for Students 6/13
American Express Blue Cash Everyday 1/14
Sallie Mae World Mastercard 2014
Chase Freedom 2014
Penfed Platinum Rewards Card 2015[/size]

MemberSince99
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Postby MemberSince99 » Mon Sep 17, 2012 1:34 pm

Seems like it. 51 points for one new account is pretty extreme. Another possibility is that it just doesn't handle charge cards correctly - it doesn't see a limit and sees a balance, and that hurts you which I did see as well.

I just checked my TU FICO which is 764, while CK FAKO is 704. 60 points difference. Honestly the FAKO is worthless anyway no one uses it, but it is interesting to see the differences in scoring models.

One thing that's interesting too is the old addage that closing accounts will hurt your score. Not necessarily. I've closed (honestly) 11 accounts this year in the past 6 months - 3 Amex, 2 Discover, Paypal MC, Amazon store card, Chase Freedom, Cap One Cash Rewards, FNBO Amex, and Barclays Applie Financing. All were closed with full payment of course but that's 11 accounts. Yet my score is higher than it was 6 months ago, in spite of the inquiries, new accounts, and closings. I think the old adage is really another YMMV thing. The new accounts dropped my AAoA, so closing them helped it go back up, while the inquiries fade in a couple of months.

I've learned from the past 6 months I really don't need (or want) a lot of cards - I just want one primary card (US Bank Cash+) and the other Visa Signature is the back up. The Visa Platinum I was going to close for lack of use, but now that they gave me that auto CLI, I will just have to leave that open. But I'd be very happy with 2 CCs. It was just too much work for me personally to try to manage a bunch of them.

MemberSince99
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Postby MemberSince99 » Tue Sep 18, 2012 6:40 am

Just wanted to follow up - the inquiries that fell off were apparently related to the apartment. Today 5 more fell off (the dealership slammed my info and I had 5 inquiries for the car) and I gained 13 more points, which again would not happen on a FICO because none of those inquiries would affect my score at all. Also on a FICO because they were all related to my auto loan within 30 days I believe they would count as one inquiry rather than 5, so that would have been another difference.

For what it's worth my CK score is 717 now, but it's worthless so it doesn't really mean anything. But this is more evidence of what's going on with the differences between the FAKO and FICO scores. But in short, don't put a lot of stock in your CK score - it MAY be close if you do the right things, but if it isn't, it's nothing to worry about as long as your FICO is good.



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