topic Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER? in Credit Cards

WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 02:30:47 GMT

Ok since we all debating the credit criteria for approvals i was wondering

1 Should we get approved easy with a 720 fico for credit?

2 Are we far away from getting approved easy with 720 fico?

3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

drkaje — Fri, 18 Jan 2013 02:56:45 GMT

There are other factors like DTI, total credit, and utilization.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

jake619 — Fri, 18 Jan 2013 03:09:58 GMT

astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA

Very hard to follow this. Signature contradicts post in AAoA and util. Post refers to "we" so maybe another is involved? Hard to know.

Maybe your denials are from lenders seeing the 46K in existing credit and your stated income doesn't support any additional.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

creditnocash — Fri, 18 Jan 2013 03:28:06 GMT

720 is a good score but to be honest its average. 750+ is high achievers and below 700 is worse then no credit. (imo)

but during applications it is a number they follow but there are other factors including whats actually on your reports, including like mentioned above, util, dti, inquries etc...

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

trumpet-205 — Fri, 18 Jan 2013 03:35:09 GMT

astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA

Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

jamesdwi — Fri, 18 Jan 2013 03:39:27 GMT

creditnocash wrote:
720 is a good score but to be honest its average. 750+ is high achievers and below 700 is worse then no credit. (imo)

but during applications it is a number they follow but there are other factors including whats actually on your reports, including like mentioned above, util, dti, inquries etc...

Your " below 700 is worse then no credit." statement is a bit harsh, many here get AMEX charge cards NPSL above 650. Some may even get AMEX revolvers at 680+. Chase Freedom and Chase Amazon are not out of the question with 650-680 range. GE Money bank will approve most of there store cards at 650 or higher perhaps much lower depending on why your score is low.

I know my current 680 is the result of 20% UTL and a 10+ INQ's and 4 cards less than 6 months old, when the cards age up a bit and get my UTL back under 10% I will see above 700 in a month or two, you can't go from no credit to good prime cards in 2 months usually, and forget about AMEX revolvers in 2 months if you started with no FICO.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

wallyworld123 — Fri, 18 Jan 2013 03:38:43 GMT

trumpet-205 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

totally agree!

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

Revelate — Fri, 18 Jan 2013 03:41:02 GMT

wallyworld123 wrote:
trumpet-205 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

totally agree!

I also agree; not all 720's (or 650's for that matter) are created equally, it's simply Fair Issac's prediction of risk... and that's only one part of the underwriting process, a foot in the door if you will.

Everything beyond that takes other factors into consideration for both risk, and quite likely for profitability as well when it comes to underwriting.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

Creditaddict — Fri, 18 Jan 2013 03:41:33 GMT

astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA

who knows really.... I mean take my friends approval for what seems to be a semi secured card from Navy that I didn't even know they did or why... $3k approval and took $500 from his Savings... he literally had 3 inactive cards ($500 Express, $250 Speigal, and $100 Macy's) and 4 bad accounts - and by bad I mean 2 capital one and 1 bestbuy mc now capital one and a verizon.... so lets see $850 INACTIVE Credit Lines (update tried to use Express today and it was closed and would not let him charge or open without new app) 1 capital one from years ago for over $2k, 1 cap from last year for around $700, and the $180 on best buy (with collections)

I assume a credit score of less then 550.

My roommate maxed to the hilt on ALL CARDS and a 1 month old 30 day late on Nordstrom got an INSTANT $6k from Navy... enough to $0 out every card he had in full... so yeah not a whole lot of debt but none the less doesn't 100% util usually mean are you crazy you want more credit but you cant charge gum on your current lines?!!

I love me some Navy but even from them seems a little abnormal.

on and roomie got approved last week for Amex Green, after adress verification.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

navigatethis12 — Fri, 18 Jan 2013 03:49:00 GMT

In December I saw that I had a 776 FICO from Transunion,and Barclays denied me for too many new accounts. I have had their card since February last year, but they still said I had opened too many new accounts last year. A high score does not mean anything. What is actually on the report is what matters.

The only lender I know that goes by the score when approving is Macys. It is said that you have to have a 720 FICO on Experian to get the American Express version.

720 just does not seem that high to me.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

chnceit — Fri, 18 Jan 2013 03:52:45 GMT

Revelate wrote:
wallyworld123 wrote:
trumpet-205 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

totally agree!
I also agree; not all 720's (or 650's for that matter) are created equally, it's simply Fair Issac's prediction of risk... and that's only one part of the underwriting process, a foot in the door if you will.

Everything beyond that takes other factors into consideration for both risk, and quite likely for profitability as well when it comes to underwriting.

+1000

People with less than 700 scores will sometimes get approved for a CC while the A+ credit wont

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

creditnocash — Fri, 18 Jan 2013 03:56:49 GMT

jamesdwi wrote:
creditnocash wrote:
720 is a good score but to be honest its average. 750+ is high achievers and below 700 is worse then no credit. (imo)

but during applications it is a number they follow but there are other factors including whats actually on your reports, including like mentioned above, util, dti, inquries etc...
Your " below 700 is worse then no credit." statement is a bit harsh, many here get AMEX charge cards NPSL above 650. Some may even get AMEX revolvers at 680+. Chase Freedom and Chase Amazon are not out of the question with 650-680 range. GE Money bank will approve most of there store cards at 650 or higher perhaps much lower depending on why your score is low.

I know my current 680 is the result of 20% UTL and a 10+ INQ's and 4 cards less than 6 months old, when the cards age up a bit and get my UTL back under 10% I will see above 700 in a month or two, you can't go from no credit to good prime cards in 2 months usually, and forget about AMEX revolvers in 2 months if you started with no FICO.

I wasn't saying it was set in stone as I put (imo=in my opinion)

if you look at my sig you see a 642 but an amex pull on ex of 721.

its all util, high inq etc.. it's all variable. since the score is only a snapshot of your history at that moment in time.

as alot of people stated including myself, there are other factors that are considered. for example my mother got a first rate car loan even with a bk reporting and a collection because she had a relationship with the company and was never late on her car payments (in the 4 years she had the car from that dealer/company) (her score at the time of pull was a 675, and you needed a 700 to qualify for the top tier)

and im not saying you cant get amex revolvers or prime cards whatever they are labeled with 650's etc. I was just stating my opinion.

Usually too qualify for the best rates mortgage/ home equity wise you need at least a 720 depending on the bank. (my bank is 760/on the conservative side) which obviously includes other factors as well.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 04:05:53 GMT

jake619 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Very hard to follow this. Signature contradicts post in AAoA and util. Post refers to "we" so maybe another is involved? Hard to know.

Maybe your denials are from lenders seeing the 46K in existing credit and your stated income doesn't support any additional.

Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 04:07:42 GMT

creditnocash wrote:
720 is a good score but to be honest its average. 750+ is high achievers and below 700 is worse then no credit. (imo)

but during applications it is a number they follow but there are other factors including whats actually on your reports, including like mentioned above, util, dti, inquries etc...
i agree with you the score is only part of the solution

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 04:09:12 GMT

trumpet-205 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

it makes sense score is only good if the report is good.So how can the report be bad but score can be high?

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

jake619 — Fri, 18 Jan 2013 04:12:16 GMT

astritaho1979 wrote:

Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.

It could be argued that one doesn't need any credit cards. Why do you need 120K in CC?

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 04:12:23 GMT

Revelate wrote:
wallyworld123 wrote:
trumpet-205 wrote:
astritaho1979 wrote:
Ok since we all debating the credit criteria for approvals i was wondering
1 Should we get approved easy with a 720 fico for credit?
2 Are we far away from getting approved easy with 720 fico?
3 Why are we getting denied with the 720 fico since the fico says that 720 is a good credit risk

Now all the other criteria include for the applicant being at utl9% and minimum 3yrs of AAOA
Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

There are other factors that weigh more than a calculated score.

totally agree!
I also agree; not all 720's (or 650's for that matter) are created equally, it's simply Fair Issac's prediction of risk... and that's only one part of the underwriting process, a foot in the door if you will.

Everything beyond that takes other factors into consideration for both risk, and quite likely for profitability as well when it comes to underwriting.

i mean sure the score is not everything but i thing the score should be lower if the report its not good.So if the score is good the report also should be in my opinion good too.Dont you agree with that assessment

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

Open123 — Fri, 18 Jan 2013 04:12:54 GMT

In my view, a score is most important during an automated review, since computer parameters are set to assign a certain value to different scores. A 720 score with a few new accounts with 500 CLs used and paid off sparingly isn't the same as the 720 score with 100K in CLs with 50K annual usage.

During manual review, the score invariably almost doesn't matter. All things being equal, what's in the CR file is much more importants, such as length of history, utilization, and how much one charges and pays.

In come is also important, but it seems to me that most lenders look at how much you use the card and how much you pay. This gives them a pretty good indication of your disposable income, at least where it related to paying off CC debt.

In my view, having a long history of using disposable income (the more, the better) to pay off credit debt is probably the most important factor during the manual review process.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

jake619 — Fri, 18 Jan 2013 04:16:08 GMT

And then there's the whole scorecard/bucket conversation to consider.

Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

astritaho1979 — Fri, 18 Jan 2013 04:16:33 GMT

jake619 wrote:
astritaho1979 wrote:

Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.
It could be argued that one doesn't need any credit cards. Why do you need 120K in CC?

For a rainy day i guess or strengthen the credit profile