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

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


CreditCrusader wrote:

The low-down regarding FICO score being the end-all-be-all really boils down to this:

 

Not all 720 FICO scores are created equal. Someone who builds a solid history of using credit responsibly and making payments on-time is more appealing to a potential creditor than someone who benefits from piggy-backing their parents' credit by AU-ing their way to a 720.

 

Then there is the income issue. A college student making $9/hour in the mailroom does not have the capacity to pay that someone with an established pay history can offer.

 

Sorry, but this is the truth. It is also why some prime lenders will deny people with 760 FICO scores but approve some applicants with 660 FICO scores. FICO score is not the end-all-be-all. The totality of your credit risk is determined by a slew of factors...and this is smart business in my estimation.


one exeption though.The computer automated credit approval will look at the score first before it approves a cli


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
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

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



Quick question.How long will u garden untill u apply for the cards your planing on


I had an app spree planned for April, but I may postpone that. It seems like I have enough cards, miles, and points to last me awhile. So, I may just keep gardening for awhile. A full year would be ideal.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Frequent Contributor
astritaho1979
Posts: 451
Registered: ‎10-02-2011
0

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

 


Dustink wrote:


Quick question.How long will u garden untill u apply for the cards your planing on


I had an app spree planned for April, but I may postpone that. It seems like I have enough cards, miles, and points to last me awhile. So, I may just keep gardening for awhile. A full year would be ideal.


Thats probably a good idea.I am thinking of doing the same thing.I got to many new accounts from the october spre.I doubt i will get any prime cards working with me with the current new accouts-8 from october


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
trumpet-205
Posts: 2,494
Registered: ‎11-11-2010
0

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

[ Edited ]

astritaho1979 wrote:

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


Incorrect. FICO score is a calculated number. As with any calculated number, they are subjected to bias.

 

I'll use myself as an example. My AAoA is 11 months with 14 INQs. As you can see I have thin files, multiple accounts, too many INQs.

 

Guess what, my EX FICO score (courtesy from AMEX) is 767. Does that mean my credit profile is better than yours? Barclay who turned me down instantly in the past certainly disagree with that assessment.

 

Furthermore, there are 49 types of FICO score out there. Yes 49 of them that calculate your score differently from one and another.

http://www.creditsesame.com/blog/scores-scores-and-more-scores-how-many-fico-credit-scores-do-you-ha...

 

We call them FICO because they are all developed by Fair Issac, that's all. They don't share universal meaning.

In My Wallet:
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
Frequent Contributor
astritaho1979
Posts: 451
Registered: ‎10-02-2011
0

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


trumpet-205 wrote:

astritaho1979 wrote:

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


Incorrect. FICO score is a calculated number. As with any calculated number, they are subjected to bias.

 

I'll use myself as an example. My AAoA is 11 months with 14 INQs. As you can see I have thin files, multiple accounts, too many INQs.

 

Guess what, my EX FICO score (courtesy from AMEX) is 767. Does that mean my credit profile is better than yours? Barclay who turned me down instantly in the past certainly disagree with that assessment.

 

Furthermore, there are 49 types of FICO score out there. Yes 49 of them that calculate your score differently from one and another.

http://www.creditsesame.com/blog/scores-scores-and-more-scores-how-many-fico-credit-scores-do-you-ha...


I guess your right there is nothing out there to say this is the credit score and this credit score is what it is.I am guessing someone out there wants us to be confused
I think there should be a little better order as far as score goes together with other factors like utl -income- inq -aaoa.I understand some posters think that i dont take in to consideration this factors but i do and yes your correct and i have to agree with you on this one


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
Established Contributor
emptypockets
Posts: 989
Registered: ‎02-03-2009
0

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

I agree that the score alone means very little. Banks/CC issuers do not like "credit seeking behavior" which is a red flag for when people may be starting to have cash flow problems. That may be a reason why it is sometimes easier to go an an app spree and get 5-6 cards (or even more) in a short period of time with INQ's spread across the 3 bureaus. You can get approved this way, but a month or so later (when all the new accounts report) your denials will start.

 

I have decent scores, 5 yr AAOA, decent Util (7-8%), age of history is 19 yrs, no baddies on report.That being said, I have been denied CLI's from AMEX and Citi twice each, due to "too many new accounts" (8 CC's and a new car in the past yr), and "revolving limits too close to original loan amount" (apparently the balance on my car is not going down fast enough for them, LOL - borrowed 24k in 2/12, owe 19k now- go figure). I strategically did my apps so I have 3 EX INQ's, 2 on EQ, 2 on TU (Got approved by Chase 2 cards using the same pull). I don't sweat it because they are soft pull CLI's. I have no intention of getting HP's for just a CLI (unless I really needed it).

 

My limits are decent (highest only 15.7k, Most limits are in the 12k-5k range. Total avail credit is about 2.5x my income. I am not a high roller, but have more than sufficient income to pay my bills, and if I just continue to manage my credit responsibly, I don't sweat the small stuff. It is nice to get new cards, etc. But if you use the current ones responsibly, you will eventally get higher limits.

 

ABSOLUTELY NOTHING is guaranteed to be approved just because your score is 720 (or any other score for that matter). Ok, I'm headed back to the garden....


CC's: AMEX (4), Alliant Visa, PenFed AMEX, Nordstrom Visa,US Bank Cash+, Chase (5), Huntington Voice, UMB Visa, Nasa FCU Plat Cash Visa, Barclay's Visa, Citi (4), Discover IT, Walmart Discover, Sam's MC, Cabela's Visa, Cap One QS, BOA (2), BMW Visa, Comenity Visa/MC (3), Ebates Visa Siggy, 5/3 RLR MC, Macy's AMEX; Several store cards.

Current Scores: EQ (6/14): 800; TU MyFico (6/14): 814; Walmart TU Fico 08 (10/2014): 813; EX (6/14): 775
Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

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

Score doesn't really matter too much if you can obtain credit... But clearly, we all want 800 FICOs ;-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Established Member
LostTime
Posts: 46
Registered: ‎01-08-2013
0

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


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.

 


This isn't necessarily true (granted I underdstand you said usually). I had no credit whatsover until aplying for and getting a $300 cap 1 card in late OCtober 2012. In late december I applied for and was approved for 3 prime cards (Amex Delta, Citi Forward and Discover IT). You are probably right that it isnt that usual, but it DOES happen. 

Amex Delta Gold $8,000 - Discover IT $1,250 - Citi Foward $2,000 - Capital One $300 - Banana Republic $300 - Walmart $300
Moderator
Revelate
Posts: 9,486
Registered: ‎12-30-2011
0

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


astritaho1979 wrote:

CreditCrusader wrote:

The low-down regarding FICO score being the end-all-be-all really boils down to this:

 

Not all 720 FICO scores are created equal. Someone who builds a solid history of using credit responsibly and making payments on-time is more appealing to a potential creditor than someone who benefits from piggy-backing their parents' credit by AU-ing their way to a 720.

 

Then there is the income issue. A college student making $9/hour in the mailroom does not have the capacity to pay that someone with an established pay history can offer.

 

Sorry, but this is the truth. It is also why some prime lenders will deny people with 760 FICO scores but approve some applicants with 660 FICO scores. FICO score is not the end-all-be-all. The totality of your credit risk is determined by a slew of factors...and this is smart business in my estimation.


one exeption though.The computer automated credit approval will look at the score first before it approves a cli


That's not the entire story: yes FICO is likely looked at first (easy yes/no decision in the underwriting tree) but even on automated CLI's, every lender in the known universe has the capacity and infrastructure to judge on quite a bit more than that... both the information you input (namely, income and housing payment) but also from individual factors on the base report.

 

All of these go into the business logic, and honestly this is pretty simple to do technically in the grand scheme of things.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Regular Contributor
SpiceIslander
Posts: 331
Registered: ‎02-01-2010
0

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


astritaho1979 wrote:

 

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

 

 


I think that was before the financial meltdown. As others have mentioned, though, there are several other factors at play in financial decisions.

Meg.

FICO: 04/2014 - TU 765 | EQ ??? | EX 768

Amex BCP 12900 | Lowes 10,000 | LOC 9300 | Sallie Mae/Barclays World MC 9000 | FNBO 8900 | BOA Platinum+ 6000 | Citi Simplicity 5200 | Chase CSP 5000 | Achieva CU 4000 | Discover 4000 | Sam's Club 3000 | Sears 900

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}