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

Valued Contributor

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


Revelate wrote:

wallyworld123 wrote:

trumpet-205 wrote:

astritaho1979 wrote:

Ok since we all debating the credit criteria for approvals i was wondering

1 Should we get approved easy with a 720 fico for credit?

2 Are we far away from getting approved easy with 720 fico?

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

 

Now all the other criteria include for the applicant being at  utl9% and minimum 3yrs of AAOA


Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

 

There are other factors that weigh more than a calculated score.

 


totally agree!


I also agree; not all 720's (or 650's for that matter) are created equally, it's simply Fair Issac's prediction of risk... and that's only one part of the underwriting process, a foot in the door if you will.

 

Everything beyond that takes other factors into consideration for both risk, and quite likely for profitability as well when it comes to underwriting.


+1000

 

People with less than 700 scores will sometimes get approved for a CC while the A+ credit wont


Last Pulled EQ: 809
Last Credit Card App: 02/05/2016
Last CLI: 02/06/2016
Find Me: Gardening
Message 11 of 64
Valued Contributor

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.

 


I wasn't saying it was set in stone as I put (imo=in my opinion) 

if you look at my sig you see a 642 but an amex pull on ex of 721. 

its all util, high inq etc.. it's all variable. since the score is only a snapshot of your history at that moment in time. 

 

as alot of people stated including myself, there are other factors that are considered. for example my mother got a first rate car loan even with a bk reporting and a collection because she had a relationship with the company and was never late on her car payments (in the 4 years she had the car from that dealer/company) (her score at the time of pull was a 675, and you needed a 700 to qualify for the top tier) 

 

and im not saying you cant get amex revolvers or prime cards whatever they are labeled with 650's etc. I was just stating my opinion. 

Usually too qualify for the best rates mortgage/ home equity wise you need at least a 720 depending on the bank. (my bank is 760/on the conservative side) which obviously includes other factors as well. 

 

 

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
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Earn Cash Back

Amex Zync(Unicorn)
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Citi DC $10,000
Citizens Mastercard$7,000
Message 12 of 64
Frequent Contributor

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


jake619 wrote:

astritaho1979 wrote:

Ok since we all debating the credit criteria for approvals i was wondering

1 Should we get approved easy with a 720 fico for credit?

2 Are we far away from getting approved easy with 720 fico?

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

 

Now all the other criteria include for the applicant being at  utl9% and minimum 3yrs of AAOA


Very hard to follow this.  Signature contradicts post in AAoA and util.  Post refers to "we" so maybe another is involved?  Hard to know. 

 

Maybe your denials are from lenders seeing the 46K in existing credit and your stated income doesn't support any additional.  



Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.


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
Message 13 of 64
Frequent Contributor

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


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...


i agree with you the score is only part of the solution

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
Message 14 of 64
Frequent Contributor

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


trumpet-205 wrote:

astritaho1979 wrote:

Ok since we all debating the credit criteria for approvals i was wondering

1 Should we get approved easy with a 720 fico for credit?

2 Are we far away from getting approved easy with 720 fico?

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

 

Now all the other criteria include for the applicant being at  utl9% and minimum 3yrs of AAOA


Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

 

There are other factors that weigh more than a calculated score.

 


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


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
Message 15 of 64
Frequent Contributor

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


astritaho1979 wrote:


Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.


 It could be argued that one doesn't need any credit cards.  Why do you need 120K in CC?


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Message 16 of 64
Frequent Contributor

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


Revelate wrote:

wallyworld123 wrote:

trumpet-205 wrote:

astritaho1979 wrote:

Ok since we all debating the credit criteria for approvals i was wondering

1 Should we get approved easy with a 720 fico for credit?

2 Are we far away from getting approved easy with 720 fico?

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

 

Now all the other criteria include for the applicant being at  utl9% and minimum 3yrs of AAOA


Because FICO score is NOT everything. Don't get too in love with FICO score, or any credit score for that matter.

 

There are other factors that weigh more than a calculated score.

 


totally agree!


I also agree; not all 720's (or 650's for that matter) are created equally, it's simply Fair Issac's prediction of risk... and that's only one part of the underwriting process, a foot in the door if you will.

 

Everything beyond that takes other factors into consideration for both risk, and quite likely for profitability as well when it comes to underwriting.


i mean sure the score is not everything but i thing the score should be lower if the report its not good.So if the score is good the report also should be in my opinion good too.Dont you agree with that assessment


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
Message 17 of 64
Super Contributor

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

In my view, a score is most important during an automated review, since computer parameters are set to assign a certain value to different scores.  A 720 score with a few new accounts with 500 CLs used and paid off sparingly isn't the same as the 720 score with 100K in CLs with 50K annual usage.

 

During manual review, the score invariably almost doesn't matter.  All things being equal, what's in the CR file is much more importants, such as length of history, utilization, and how much one charges and pays.

 

In come is also important, but it seems to me that most lenders look at how much you use the card and how much you pay.  This gives them a pretty good indication of your disposable income, at least where it related to paying off CC debt.  

 

In my view, having a long history of using disposable income (the more, the better) to pay off credit debt is probably the most important factor during the manual review process.

Message 18 of 64
Frequent Contributor

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

And then there's the whole scorecard/bucket conversation to consider.  


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Message 19 of 64
Frequent Contributor

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


jake619 wrote:

astritaho1979 wrote:


Well stated income is at 150k with 1utl.I can fully support more credit.I just need high limit credit cards maybe 4 of them with 30k limit.I dont really need all this cards with small limits you know.


 It could be argued that one doesn't need any credit cards.  Why do you need 120K in CC?


For a rainy day i guess or strengthen the credit profile


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
Message 20 of 64