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Senior Contributor
Open123
Posts: 4,194
Registered: ‎02-23-2011
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


CreditScholar wrote:

 

Open, I wanted to get your opinion on this since you brought it up. At what point do you think most lenders flag someone as a high spender, seperate from their other customers? 30k? 50k? 100k? Maybe it's done in tiers/levels? I'm just curious at what point are you seen/identified as different from the rest based on spending?

 

 


From my sense of things and dealing with different lenders, I sense that in general, $50K - $100K spend (legitimate spend) is a "sweet spot" where any issuer will start to not only covet, but offer all sorts of rewards to maintain, especially if they're in low risk spending categories, such as dining, travel, and entertainment.

 

At $20 - $50K level, I think issuers see these as "very good" customers -- I'd imagine--all things being equal--these are ones whom the huge signing bonuses are meant to attract en masse.  

 

At $100K + is where one starts to see the really "elite" cardmembers.  It seems to me Amex and Chase seem to be coveting this segment as much for bragging rights as they are for purely profit from spending.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Revelate wrote:

astritaho1979 wrote:

i agree with you on most of the things ur saying the only thing that i would sugest fico to do would be to have the fico in to 3 categories
Fico 720 A 720 B 720 C so  if some one is new to credit but is correct for the first yr with the payments give them 720 C if someone with long payment history and strong report but mid utl give them 720 A so this way the underwriter can  base his decision base on fico score alone.Now this is my opinion.What do u think?


Why are you so hung up on making the FICO score the end-all and be-all of credit approvals?

 

It's already a complicated enough animal to begin with, and some things such as income, DTI, assets, aren't and would be incredibly difficult to factor into the score but they're absolutely used when it comes to underwriting.

 

In your model, would we do the same thing for mortgages?  If so, if you think the last mortgage crisis was bad, get ready for the big one... and if not, where would you draw the line on it?


Rev, don't bother with him. Some people only hear what they want to hear. I haven't commented to him directly because I know I'd simply be wasting my time.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
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astritaho1979
Posts: 451
Registered: ‎10-02-2011
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Open123 wrote:

CreditScholar wrote:

 

Open, I wanted to get your opinion on this since you brought it up. At what point do you think most lenders flag someone as a high spender, seperate from their other customers? 30k? 50k? 100k? Maybe it's done in tiers/levels? I'm just curious at what point are you seen/identified as different from the rest based on spending?

 

 


From my sense of things and dealing with different lenders, I sense that in general, $50K - $100K spend (legitimate spend) is a "sweet spot" where any issuer will start to not only covet, but offer all sorts of rewards to maintain, especially if they're in low risk spending categories, such as dining, travel, and entertainment.

 

At $20 - $50K level, I think issuers see these as "very good" customers -- I'd imagine--all things being equal--these are ones whom the huge signing bonuses are meant to attract en masse.  

 

At $100K + is where one starts to see the really "elite" cardmembers.  It seems to me Amex and Chase seem to be coveting this segment as much for bragging rights as they are for purely profit from spending.


are you suggesting we spend 100k in credit card and is that with in a monthly bases or annually/Thanks


COMMERCE BANK PLATINIUM VISA 20K*PAYPAL MC $9.5K*CITI FORWARD $8.5K*PENFED $6,5K*
*LOWES $6K *CMN BANK $5.2K-*PNC $5K*SCLUB DISC. $5K*
WMART DISC.4K*CMN BANK 3.75K*BANK OF AMERICA $3K* MACYS $2.2K*
JCP $1.8*TARGET $0.7K* UTL1%- AAOA 5.5- TOTAL 12 yrs History/
Transunion 718 Equifax 733- Experian 736
Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Open123 wrote:

CreditScholar wrote:

 

Open, I wanted to get your opinion on this since you brought it up. At what point do you think most lenders flag someone as a high spender, seperate from their other customers? 30k? 50k? 100k? Maybe it's done in tiers/levels? I'm just curious at what point are you seen/identified as different from the rest based on spending?

 

 


From my sense of things and dealing with different lenders, I sense that in general, $50K - $100K spend (legitimate spend) is a "sweet spot" where any issuer will start to not only covet, but offer all sorts of rewards to maintain, especially if they're in low risk spending categories, such as dining, travel, and entertainment.

 

At $20 - $50K level, I think issuers see these as "very good" customers -- I'd imagine--all things being equal--these are ones whom the huge signing bonuses are meant to attract en masse.  

 

At $100K + is where one starts to see the really "elite" cardmembers.  It seems to me Amex and Chase seem to be coveting this segment as much for bragging rights as they are for purely profit from spending.


Thanks for that, and it's along the lines of what I was thinking too.

 

I have a feeling you're a more private person than I, but would I be able to ask what your approximate annual spend is on average? Or at least which category above you might fit into? I've always been curious.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Senior Contributor
Open123
Posts: 4,194
Registered: ‎02-23-2011
0

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


astritaho1979 wrote:

Open123 wrote:

CreditScholar wrote:

 

Open, I wanted to get your opinion on this since you brought it up. At what point do you think most lenders flag someone as a high spender, seperate from their other customers? 30k? 50k? 100k? Maybe it's done in tiers/levels? I'm just curious at what point are you seen/identified as different from the rest based on spending?

 

 


From my sense of things and dealing with different lenders, I sense that in general, $50K - $100K spend (legitimate spend) is a "sweet spot" where any issuer will start to not only covet, but offer all sorts of rewards to maintain, especially if they're in low risk spending categories, such as dining, travel, and entertainment.

 

At $20 - $50K level, I think issuers see these as "very good" customers -- I'd imagine--all things being equal--these are ones whom the huge signing bonuses are meant to attract en masse.  

 

At $100K + is where one starts to see the really "elite" cardmembers.  It seems to me Amex and Chase seem to be coveting this segment as much for bragging rights as they are for purely profit from spending.


are you suggesting we spend 100k in credit card and is that with in a monthly bases or annually/Thanks


Annual spending, and I only suggest spending $100K on a card of your choice if it's money you were going to spend regardless.  

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Valued Contributor
improvingmycredit
Posts: 1,402
Registered: ‎07-12-2011
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

Hello All!

I think a good rule of thumb is:  focus on what's on your credit report not your score.  Your FICO score is a good prediction of future risk with most lenders and can get you approved instantly if it's good enough but I know many with great FICO scores on here that still have concerns when apping a lender because even with the great score- it's still comes down to what's on the report.  For example:    How many recent inqs you have.  A lot here put to the wayside the value of focusing on what's on your report.  Do this and your FICO falls in line.  JMO. 


Starting Score: 642
Current Score: EQ 773, EX 780, TU 777 (All FICO)
Goal Score: 800+

Cards: NFCU Flagship 50K, DC 30K, BCP 28.6K, Arrival+ 25K, Citi DP 22.8K, CSP 20.5K, TotalRewards 20.5K, QuickSilver 20K

Frequent Contributor
astritaho1979
Posts: 451
Registered: ‎10-02-2011
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Open123 wrote:

astritaho1979 wrote:

Open123 wrote:

CreditScholar wrote:

 

Open, I wanted to get your opinion on this since you brought it up. At what point do you think most lenders flag someone as a high spender, seperate from their other customers? 30k? 50k? 100k? Maybe it's done in tiers/levels? I'm just curious at what point are you seen/identified as different from the rest based on spending?

 

 


From my sense of things and dealing with different lenders, I sense that in general, $50K - $100K spend (legitimate spend) is a "sweet spot" where any issuer will start to not only covet, but offer all sorts of rewards to maintain, especially if they're in low risk spending categories, such as dining, travel, and entertainment.

 

At $20 - $50K level, I think issuers see these as "very good" customers -- I'd imagine--all things being equal--these are ones whom the huge signing bonuses are meant to attract en masse.  

 

At $100K + is where one starts to see the really "elite" cardmembers.  It seems to me Amex and Chase seem to be coveting this segment as much for bragging rights as they are for purely profit from spending.


are you suggesting we spend 100k in credit card and is that with in a monthly bases or annually/Thanks


Annual spending, and I only suggest spending $100K on a card of your choice if it's money you were going to spend regardless.  


I do spend on my business side about 200k a year but pay it back within 6 months or so and the banks have been very good with my business.I start usualy at 15k when i opened the account and made my way up to 35k within 3 months and yea the rewards are great specially with chase ink


COMMERCE BANK PLATINIUM VISA 20K*PAYPAL MC $9.5K*CITI FORWARD $8.5K*PENFED $6,5K*
*LOWES $6K *CMN BANK $5.2K-*PNC $5K*SCLUB DISC. $5K*
WMART DISC.4K*CMN BANK 3.75K*BANK OF AMERICA $3K* MACYS $2.2K*
JCP $1.8*TARGET $0.7K* UTL1%- AAOA 5.5- TOTAL 12 yrs History/
Transunion 718 Equifax 733- Experian 736
Senior Contributor
Open123
Posts: 4,194
Registered: ‎02-23-2011
0

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


CreditScholar wrote:

Thanks for that, and it's along the lines of what I was thinking too.

 

I have a feeling you're a more private person than I, but would I be able to ask what your approximate annual spend is on average? Or at least which category above you might fit into? I've always been curious.


My personal spending varies from year to year, but I'd say it's in the $50 - $100K range of "legitimate" spending.  

 

If I were to factor in all the spending I put on cards for the rewards (such as bills, taxes, etc...), it'd be north of $100K, but it's somewhat inflated.

Frequent Contributor
astritaho1979
Posts: 451
Registered: ‎10-02-2011
0

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


improvingmycredit wrote:

Hello All!

I think a good rule of thumb is:  focus on what's on your credit report not your score.  Your FICO score is a good prediction of future risk with most lenders and can get you approved instantly if it's good enough but I know many with great FICO scores on here that still have concerns when apping a lender because even with the great score- it's still comes down to what's on the report.  For example:    How many recent inqs you have.  A lot here put to the wayside the value of focusing on what's on your report.  Do this and your FICO falls in line.  JMO. 


thats true especially when you have new accounts they dont care about the fico score.Thats a good advice right there.Thanks


COMMERCE BANK PLATINIUM VISA 20K*PAYPAL MC $9.5K*CITI FORWARD $8.5K*PENFED $6,5K*
*LOWES $6K *CMN BANK $5.2K-*PNC $5K*SCLUB DISC. $5K*
WMART DISC.4K*CMN BANK 3.75K*BANK OF AMERICA $3K* MACYS $2.2K*
JCP $1.8*TARGET $0.7K* UTL1%- AAOA 5.5- TOTAL 12 yrs History/
Transunion 718 Equifax 733- Experian 736
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dodgeball
Posts: 761
Registered: ‎10-16-2007
0

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

this tread is awesome! As I have eluded to the average score is really in the 680's not in the 700's like fico claims. there is only one state where credit scores average over 710. The law of averages do not support Fico's claims.

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