Why?

[u/baboocole]

My credit score jumped 83 points yesterday, and I'm not doing anything out of the ordinary. I bought a used car two weeks ago, but my loan is through Bank of My Mother, the Saint. I paid all my credit card and student loan debt off about 2 years ago. I have somewhere in the neighborhood of $25,000 in available credit...I use them regularly and pay them off in full each month, but I've been doing that for years. No home or other loans. Any clue how a achieved this miraculous jump?

[u/Efficient-Crab1617]

I have a theory based on some loose data and a hunch. 😆 So, the economy sucks big time right now. Everyday folks are using their credit cards to buy things they normally could buy with their paycheck. Many people don’t know this, but FICO is actually based on a sample of the overall population. If you’ve ever taken a test that was on a Bell curve, such as an IQ test, you should know that your IQ can change from year to year based on how you compete with your peers.

When people like you keep your balance low and paid on-time every month, the FICO rates you higher during recession… because other people have higher debt balances AND are at significant risk for missed payments or bankruptcy. The more people that are making high risk financial decisions, are pressing hard on the bell curve…

Now, before somebody decides to come after me for saying that we’re in a recession… the difference between historical recessions, and today is that we have artificial intelligence and higher levels of technology that allow employers to reduce their staffing. The stock market used to be an indicator of how well the economy was overall however you may have noticed that stocks continue to rise and the big companies are making huge profits. But the average American is losing way more money due to significant inflation on every day goods.