topic Re: my trans union credit report and score in Understanding FICO® Scoring

my trans union credit report and score

youtoo — Thu, 31 Jan 2013 02:47:26 GMT

I checked my free report at annualcredit.com and then decided to look at my score. For the $10 you pay trans union, I got a non-start score of 894 out of 990 which put me just below A and in the 84% of the country. All of my debts were list as ok. I don't understand the knocks against. its wierd.

So is this what this means?

1. open more credit cards. Just don't spend any money on them?

2. I refinanced my mortgage to a lower rate 3 years ago. So get this one. I guess my credit score goes up as my mortgage premium goes down? I don't pay points or any extra premium. Interest rates are so low I make more money investing.

3. oldest revolving credit is too recent? Where do I get this? I have 1 credit card that I opened over 20 years ago. I believe I had a few credit cards that have closed from amazon and such cause they gave me $25 off. I never activated them. Is that what this means? These have NEVER been used or even activated.

4. So I need to buy a bigger house with a bigger mortgage? Can someone explain the reasoning of this to me?

I do have a car payment. Surprised that wasn't listed here.

What would I need to do to get to the A range. Is there any value in doing? I'm lost. There is nothing I plan to buy right now.

1.The available credit on your open revolving credit accounts is too low.

Having credit available to you is a sign that you are able to manage your finances responsibly. Lenders usually like to see that consumers have a large amount of credit available to them.

2.The amount paid on your open real estate accounts is too low.

Having little paid down on some accounts may be considered by lenders to be a negative factor when determining creditworthiness.

3.Your oldest revolving credit account was opened too recently.

Time is an important factor for a healthy credit score. Giving the accounts time to mature may allow creditors to better understand how you pay your debts.

4.Your average credit amount on open real estate accounts is too low.

Having credit available to you is a sign that you are able to manage your finances responsibly. Lenders usually like to see that consumers have a large amount of credit available to them.

Re: my trans union credit report and score

youtoo — Thu, 31 Jan 2013 03:22:50 GMT

I just checked my credit score with myfico.com for the free check. It is 805. I am thinking of refinancing my mortgage. This would drop my rate by 1.5%. If I go to multiple mortgage companies for rates, will their inquiries hurt my credit score? Not sure what I should do?

When I checked zillow.com for rates, the highest range was 760 and above. Do you get lower rates for credit ratngs above 800?

Re: my trans union credit report and score

llecs — Thu, 31 Jan 2013 03:24:12 GMT

Put faith in none of it because it isn't related to FICO and some of the advice offered within VantageScores can be counter-productive to FICO and following the advice, in some cases, can actually hurt your FICO score.

1) VantageScore weighs your total available balance and scores on higher CLs. FICO isn't like that. It doesn't matter if your combined CLs are $1,000 or $100,000, FICO is indifferent. It's how you use it that counts.

2) VantageScore weighs util on installment accts. It's virtually non-existent with FICO. Paying down most all of your mortgage won't move your FICO.

3) 20 yrs is a long time. It's unlikely that would be a FICO drain.

4) Like with #2, it really doesn't matter per FICO.

Re: my trans union credit report and score

llecs — Thu, 31 Jan 2013 03:37:01 GMT

youtoo wrote:
I just checked my credit score with myfico.com for the free check. It is 805. I am thinking of refinancing my mortgage. This would drop my rate by 1.5%. If I go to multiple mortgage companies for rates, will their inquiries hurt my credit score? Not sure what I should do?

When I checked zillow.com for rates, the highest range was 760 and above. Do you get lower rates for credit ratngs above 800?
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Great score! I'd refi. There's no benefit of having a higher score other than aiming towards 850.

Re: my trans union credit report and score

youtoo — Thu, 31 Jan 2013 04:06:13 GMT

will my credit rating drop if i refinance my mortgage? how long will this dip?

I am thinking of getting a new credit card. The one I have does not give any cash back. So I wanted to get a new card to actually save some money.

if i refnance and get a credit card am I looking at about a 10 point dip in my credit rating? how long does this last? is there any real difference between a 795 and an 805 credit rating to lenders?

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Re: my trans union credit report and score

my-own-fico — Thu, 31 Jan 2013 04:10:05 GMT

llecs wrote:
VantageScore weighs util on installment accts.

llecs, I am shocked to hear that. My TU VantageScore just increased by one point to 987, and our car loan is paid down a mere one third by way of installment payments that run like a German train schedule. Am I OK?

Re: my trans union credit report and score

llecs — Thu, 31 Jan 2013 04:25:24 GMT

my-own-fico wrote:
llecs wrote:
VantageScore weighs util on installment accts.

llecs, I am shocked to hear that. My TU VantageScore just increased by one point to 987, and our car loan is paid down a mere one third by way of installment payments that run like a German train schedule. Am I OK?

It'll be OK....It's all OK. :smileyhappy:

Re: my trans union credit report and score

llecs — Thu, 31 Jan 2013 04:27:11 GMT

youtoo wrote:
will my credit rating drop if i refinance my mortgage? how long will this dip?
I am thinking of getting a new credit card. The one I have does not give any cash back. So I wanted to get a new card to actually save some money.

if i refnance and get a credit card am I looking at about a 10 point dip in my credit rating? how long does this last? is there any real difference between a 795 and an 805 credit rating to lenders?

You might see a dip with the new account, but you'll fully recover within a year I bet. Be sure to refi before adding any other credit, like a CC.

I think the 10 pts will be higher, but again, fully recoverable within a year. No difference between the two scores.