@Dalmus wrote:
@Anonymous wrote:I had an 802 in 2009 with no property. 6 credit cards and one chase auto loan. Then 2009 happened and all it entailed . Balance chasing, landlord default, so on.
My Fiance had an 810 (FICO 9) two months ago according to our credit union. She has 3 credit cards and a car loan, nothing else.
Which CU is using FICO 9? My apologies if this has been answered previously.
Anyway in general you can have lots more accounts than 3 revolving and 1 installment to hit an 850 on FICO 8 and presumably FICO 9, really the minimum you want is 5 revolvers with how revolving utiliztion is calculated from my data but maybe it's different on clean files.
Also as has been noted by another you can get a FICO 8 of 800+ in 2 years if you build your file smartly from scratch (assuming no negatives that you're waiting for to come off like I am).
If it were me building a new credit report I'd go get a share secured loan, pay it 95% back, then go open 5 cards, unsecured, secured, store doesn't matter what type preferably from recognized lenders (less chance of something popping up as a consumer finance account) and then sit on my hands and let everything age for 2 years.... unfortunately most of us aren't blessed with that sort of credit opportunity.
@BronzeTrader wrote:I think in general, banks like folks who have different lines of credit, multiple CCs, auto loan and house loan. Some decent charges (spending) and good payment history. Or they want to see that you have $$ to spend and you always pay on time. They want big spenders, but not payment problems.
The FICO scores are really mis-leading. There are various types of scores and some do not make sense at all. The consumer side scores are always higher than the bank side scores. So do not believe the 8xx score you see now. When you apply for CCs, banks normally send your real FICO scores they look at. They are always lower than the free ones.
There's no correlation and this comment is honestly baseless.
Yes the only score that matters is the one the lender pulls hence worry about file optimization rather than what the resultant score is; however, lenders generally use one or two particular scores, and then the compare that with the rest of their customer data using the same scores. They're not picking random scores out of the wind to your detriment... fortunately we live in a free market society, if you get an absurd rate or fees you just go elsewhere. Banks are cognizant of that.
@BronzeTrader wrote:
@Revelate wrote:
@BronzeTrader wrote:I think in general, banks like folks who have different lines of credit, multiple CCs, auto loan and house loan. Some decent charges (spending) and good payment history. Or they want to see that you have $$ to spend and you always pay on time. They want big spenders, but not payment problems.
The FICO scores are really mis-leading. There are various types of scores and some do not make sense at all. The consumer side scores are always higher than the bank side scores. So do not believe the 8xx score you see now. When you apply for CCs, banks normally send your real FICO scores they look at. They are always lower than the free ones.
There's no correlation and this comment is honestly baseless.
Yes the only score that matters is the one the lender pulls hence worry about file optimization rather than what the resultant score is; however, lenders generally use one or two particular scores, and then the compare that with the rest of their customer data using the same scores. They're not picking random scores out of the wind to your detriment... fortunately we live in a free market society, if you get an absurd rate or fees you just go elsewhere. Banks are cognizant of that.
What you said is really baseless.
Banks look at different types of FICO scores, which are often different from the ones provided by the banks to customers. In essence, there are internal FICOs and customer FICO scores. Most of time, they are different.
This has been discussed so many times here at MyFICO. Go read it.
I apologize as I came off more heavy handed than I intended but that doesn't invalidate my point.
The scores that are given for free are not necessarily the ones the use to UW an application. True enough.
That has no bearing on my statement though: they will use some given credit score (FICO or otherwise), and they use that in part to determine your credit worthiness based on their entire customer data set. You may pull an 800 on your FICO 8, but a 600 on your internal score, but you're likely going to darned close to the same rate regardless. It is a comparitive analysis, not an absolute one.
The financial market is not a monopoly, it's not even a mature one with how many players are in it certainly on the credit card side (mortgages not withstanding) and if one bank is charging usurious APR's the customers are going to go elsewhere. Ergo they can't, and your rate is not determined by your score alone.
There's nothing to the detriment of customers (well could argue the entire practice isn't in our best interests but what I mean is it's not purposefully done to harm us), it's just how the market works.
Worrying about absolute value of any given score isn't worth much: hence the common recommendation to simply create a pretty report, as that will create a pretty score regardless of algorithm selected.