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Established Contributor
Susyquk
Posts: 504
Registered: ‎03-27-2009
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Re: Credit Card Usage for high FICO score


creditwherecreditisdue wrote:
Does anyone know which FICO model the score provided by transunioncs is based on? If it is FICO 08 I like it.

98.  The same as the one you buy here (and not the 04 one that more and more lenders finally seem to be getting round to using)

Frequent Contributor
hobojon
Posts: 261
Registered: ‎01-20-2009
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Re: Credit Card Usage for high FICO score


creditwherecreditisdue wrote:
Does anyone know which FICO model the score provided by transunioncs is based on? If it is FICO 08 I like it.

Equifax-       Beacon 5.0

Experian -    Fair Isaac Risk Model V2

Transunion-  FICO Risk Score Classic 98

 

 

 

Regular Contributor
ExcellCR
Posts: 153
Registered: ‎07-10-2009
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Re: Credit Card Usage for high FICO score

 

hobojon wrote:

I raised my spouses AAoA effectively by adding her as AU to four of my 20 year old amex cards. I actually only have one 20 year old amex card. I opened five more in a 9 month period of time and they backdated the opening dates for me. The beauty is I can close them all now and apply for 5 more and they will all still count towards average age. My spouses scores went from the 720's to the 790's. We both PIF before the due date and always have 0% utilization reported. I think I could play around with balances some more and get into the 800's but what's the point?


 

I knew closed accts remain for history for 10 yrs.  So they count in the average age too? 

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Credit Card Usage for high FICO score


ExcellCR wrote:

 

hobojon wrote:

I raised my spouses AAoA effectively by adding her as AU to four of my 20 year old amex cards. I actually only have one 20 year old amex card. I opened five more in a 9 month period of time and they backdated the opening dates for me. The beauty is I can close them all now and apply for 5 more and they will all still count towards average age. My spouses scores went from the 720's to the 790's. We both PIF before the due date and always have 0% utilization reported. I think I could play around with balances some more and get into the 800's but what's the point?


 

I knew closed accts remain for history for 10 yrs.  So they count in the average age too? 


 

 

YEP.  They continue to factor into AAoA as long as they remain on your CR.  Once they drop....obviously you lose that benefit.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
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Goal800
Posts: 21
Registered: ‎07-14-2009
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Re: Credit Card Usage for high FICO score

What in the world? I post a few questions, come back, and find a 5 page discussion! Very interesting comments everyone, thank you.

 

I appreciate the offers to help based on my particular situation, but what I am trying to figure out is how these scores are determined, and therefore specifics of my credit report are not relevant. Since there is no element of chance in the calculations, even if the scoring varies depending on the bucket, there are still principles and rules that guide the scores. I posted a number of questions in my OP, is it possible someone could answer these? For example I heard that a while ago (~15 yrs?) Amex and Diner's club cards were worth more to a score, is this still true? Also had questions on dates of score reporting, hard pulls, credit card accounts not being used, credit limits, etc. 

 

I do realize that time is a big factor, but I am going to change everything that is modifiable and which will help my score.

 

On this AU discussion, so the consensus is that I can increase my account age by becoming an AU on other accounts? How does this work exactly? I already have a credit card that I use but doesn't show up on my credit report. Is it possible for a card to show up on 2 different people's account?

 

Does address play a factor in credit score? I moved to a new place but do not know if the credit agencies have it, do I report it or keep my old address?

 

For the utilization question, it seems this could be easily answered by using Scorewatch right? I don't have it, but if scores can be checked daily, someone could just keep everything in their history the same except changing the utiltization a few times in different directions and check the subsequent scores? I may get this service to see what happens when I make various changes relating to credit.

Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008
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Re: Credit Card Usage for high FICO score

[ Edited ]

---------------------------------------------

 

Goal800 wrote: "I posted a number of questions in my OP, is it possible someone could answer these?"

 

--------------------------------------------

 

Welcome back, Goal800!  Glad you're here!

 

(We're a lively bunch, aren't we?)

 

Back in a sec with some answers/opinions for you!

 

 

 

(Edit to insert quote)

Message Edited by Uborrow-Upay on 07-17-2009 07:36 AM
Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008
0

Re: Credit Card Usage for high FICO score

[ Edited ]

Do credit card companies report to all 3 credit agencies on the same date each month?

No.  Differs from one to the other, but many report your account with them on the statement closing date for that account.

 

Is it better to have an American Express or Diner's Club card compared to regular credit cards?

Opinions vary, but new lenders tend to like seeing prime cards in your history rather than subprime cards.  Discover, for example, is a conservative lender.  An account with them on your history would look better to a new lender than, say, Orchard.

Does anyone know how CLs are increased on cards?

All over the board on this one...some are automatic, some are non-existent, each varies with the issuer.  I don't think there is one set standard, except for having an outstanding payment history with that creditor according to their own internal guidelines.

 

Is it paying off balances regularly without late payments, maintaining a large balance for many months, or using a high percentage of the current limit for 1 month or a certain number of months?

In my experience only, I believe high utilization (very short-term) with a prompt payment-in-full of the account one or more times over the six months prior to requesting an increase does the trick.  Of course, all other accounts should be at zero balance, or thereabouts.

 

 

Will a higher credit limit even increase my FICO score?

Yes.  Lowers the utilization if you carry a balance, and even if you don't, it demonstrates that this particular  lender trusts you, leading other lenders to trust you at that higher level.

 

How long do hard pulls last on a credit report and is there any way to get around it if one is applying for credit for say a mortgage or a car?

Subject to being corrected here... They stay on your report for two years, factor into your score for only one.  Multiple credit pulls for a mortgage or car loan within a short period of time only count as one inquiry for scoring purposes, so shop for rates without getting hit on your score.

 

Will credit card companies close an account not being used or will they contact me first? How often do I need to use a card? Once/year, once every 2 years?
They can, and do, close without notice.  Especially now.  Use each card for something every two-three months, opinions vary on this.
 
It states that FICO High Achievers have an average of 3 credit accounts with balances (for the best score)

Cards with balances should be less than half of the total number of accounts.  Most folks on these boards with the higher scores don't let more than one card report any given time.  Zero balance on ALL accounts, however, lowers your score for non-use.

 

Brief answers to a lot of questions.  I'm sure others will jump in here....

 

Good Luck!!

 

(Edit to add the following:smileyhappy:

 

Some of the above answers may not address what you were looking for, for instance, the Amex/Diner's Club question.  Are you asking if a charge card is better than a revolving credit account?  Please feel free to clarify further if needed.  

 

Carry on...

Message Edited by Uborrow-Upay on 07-17-2009 07:43 AM
Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009
0

Re: Credit Card Usage for high FICO score

[ Edited ]

What I have enjoyed about this thread is that it seems to show there is no "EXACT METHOD or MODEL" used in regards to Credit Cards.

 

As I have said before, I may be the worst person to ask about "scores" as I have never seen or checked my "credit scores" as I have never had a need to. One time I did ask the Branch Manager at my bank (US BANK) if my credit score was ok and he told me "it was good enough to get any financial product they offered and on thei best terms, so I was satisfied.

 

My wife and I maintain 4 Credit Cards. Our total Credit Limit is 95K, (3 at 25K, 1 at 20K) The cards are from US BANK, BOA, WELLS FARGO and IBERIA.

 

We still get solicited for new CC's every week and offered CLI's, which I decline. We have not had a APR raise, so as i say, there must be different things people look for.

 

Granted, I am retired, we live debt free (including our income properties) so maybe this makes a difference. I do not know.

 

I do know I use each credit card a few times each month. We charge gas, groceries, and have auto payments on cable, utilities, cell phones, etc, etc. I even pay our Insurances with them and have paid TAXES with them.Our monthly usage is normally in the $2500-$3000 range, which we pay in full when I get the bill.

 

Could I manage it better? Perhaps, then again, I have things in life I would rather be doing then sitting and worrying about the best way to 'work the system". I do not say that as finding fault with what anyone does, just stating that we have to do what seems to work best for us.

 

I do see many changes on the credit horizon. I worked for 25+ years in the gaming business and found it interesting to recently read that several top bank officials met with credit experts from the gaming industry to find out what model they use to mitigate credit losses, as casino losses are FAR LESS percentage wise then any CC issuer.

 

As for everyone on here, I do wish you all achieve your financial goals in life .

 

 

 

 

 

 

Message Edited by DickC on 07-17-2009 03:19 PM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Credit Card Usage for high FICO score

DickC -

 

You do know that these are the ficoforums, hosted by myFICO.com, and is, therefore, frequented by persons who have a great interest in their FICO scores, right?

 

Nice to know that the banking industry is seeking information from the gaming industry. If they got more guidance from those in industries that are profitable and less from the government we might all be better off.

Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009
0

Re: Credit Card Usage for high FICO score


creditwherecreditisdue wrote:

DickC -

 

You do know that these are the ficoforums, hosted by myFICO.com, and is, therefore, frequented by persons who have a great interest in their FICO scores, right?

 

Nice to know that the banking industry is seeking information from the gaming industry. If they got more guidance from those in industries that are profitable and less from the government we might all be better off.


 

Absolutely I am aware of who sponsors this forum and may I say, I COMMEND THEM FOR IT. One of the biggest problems the Credit Industry has always had is that so many people do not understand it. It is just a shame there are not more informative sites like this for people.

 

I personally enjoy reading it, to see trends that are going in the credit industry and I must confess I enjoy clicking on and reading comments in ALL SECTIONS of these forums, not just the "Credit Card" section.

 

Yes, I certainly think you are 100% correct  that the industry will be far better served seeking advice from anyone other then the Government.


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