I paid back my last 25k of arbitrage a while ago but it took nearly two months for my score to pop. It went from 757 to 825 after (I’m assuming) paying off that last 25k. Of course, I’ve now taken a 40k auto loan and plan on swapping that back over to credit card at 0% (thank you Helicopter Ben) so I wonder what my score will be in October or November.


But I want to reiterate as I did in this post, as to why I think FICO has some very serious flaws. My score has bounced from a low of 725 to 825 simply because I was playing credit card arbitrage. My ability to repay that credit card debt was never in doubt so why did my score fluctuate so wildly? I’m not even sure how raising my credit limits impacted my score.

In a month or two, my 40k auto loan and 30k in new credit card arbitrage will show up on my credit reports and I plan on buying another new car so that might end up being an additional 40k on top of all that. I suspect that my score will drop down to 725 again which is ironic because I could easily pay all of that debt off from reserves.

Is the whole purpose of FICO to give banks a legitimate reason to jack up interest rates on none-to-wise consumers? Over the past years I’ve held and paid off upwards of 60k to 70k in debt and paid it off, does this count for anything?

Quite simply, my FICO score shouldn’t get trashed because I chose to take advantage of 0% APR offers from credit cards or car manufacturers. I’m still waiting on that class action lawsuit against the credit bureaus….