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


astritaho1979 wrote:

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


Thanks!  :smileyhappy:.  It's what I do.  


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astritaho1979
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


dodgeball wrote:

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.


i believe the score average also vary from zip code as well.So i guess u need to focus on the zip code average.My zip code average score is 744 in northern illinois


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astritaho1979
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


improvingmycredit wrote:

astritaho1979 wrote:

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


Thanks!  :smileyhappy:.  It's what I do.  


I hear you.lol:smileysurprised:


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

Either way the numbers do not support Fico's claims. When I was a loan officer High 600's was normal than 700's in affluent scottsdale AZ

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

[ Edited ]

dodgeball wrote:

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.


As someone pointed out in the other thread, there is a difference between median and average, and statistically average has to be lower given the FICO score ranges involved. That's the disparity between the two numbers, admittedly we've been a little sloppy in terminology here.

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astritaho1979
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Revelate wrote:

dodgeball wrote:

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.


As someone pointed out in the other thread, there is a difference between median and average, and statistically average has to be lower given the FICO score ranges involved. That's the disparity between the two numbers, admittedly we've been a little sloppy in terminology here.


+1


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

Certain things can make somebody with a 720 score ineligible for cards. A lender may be against a high number of INQs or too many new accounts. Even if a high score is maintained the lender still might decline on that basis alone.

 

As for the talk about high spending. I think it also has to do with age and customer relationships. When I was young and very new to credit, my spending wasn't high but it was high for my age. My bank noticed me as an opportunity and did all they could to keep me as a customer. I was charging maybe $2,500 per month and PIF, which isn't real high but for somebody under 21 it was. They felt it would be in their best interest to offer me a lot in hopes of building a relationship with me. They likely hoped that as a kid with high spending I may become middle age with very high spending. So, in a situation like this I may have been able to qualify for more with no credit than somebody would have been able to get with a score of 720.

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astritaho1979
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Dustink wrote:

Certain things can make somebody with a 720 score ineligible for cards. A lender may be against a high number of INQs or too many new accounts. Even if a high score is maintained the lender still might decline on that basis alone.

 

As for the talk about high spending. I think it also has to do with age and customer relationships. When I was young and very new to credit, my spending wasn't high but it was high for my age. My bank noticed me as an opportunity and did all they could to keep me as a customer. I was charging maybe $2,500 per month and PIF, which isn't real high but for somebody under 21 it was. They felt it would be in their best interest to offer me a lot in hopes of building a relationship with me. They likely hoped that as a kid with high spending I may become middle age with very high spending. So, in a situation like this I may have been able to qualify for more with no credit than somebody would have been able to get with a score of 720.


it makes sense.


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WMART DISC.4K*CMN BANK 3.75K*BANK OF AMERICA $3K* MACYS $2.2K*
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astritaho1979
Posts: 451
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?


Dustink wrote:

Certain things can make somebody with a 720 score ineligible for cards. A lender may be against a high number of INQs or too many new accounts. Even if a high score is maintained the lender still might decline on that basis alone.

 

As for the talk about high spending. I think it also has to do with age and customer relationships. When I was young and very new to credit, my spending wasn't high but it was high for my age. My bank noticed me as an opportunity and did all they could to keep me as a customer. I was charging maybe $2,500 per month and PIF, which isn't real high but for somebody under 21 it was. They felt it would be in their best interest to offer me a lot in hopes of building a relationship with me. They likely hoped that as a kid with high spending I may become middle age with very high spending. So, in a situation like this I may have been able to qualify for more with no credit than somebody would have been able to get with a score of 720.


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


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WMART DISC.4K*CMN BANK 3.75K*BANK OF AMERICA $3K* MACYS $2.2K*
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CreditCrusader
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Registered: ‎09-27-2011
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Re: WHAT IS THE FICO SCORE OF 720 REALLY MEANS TO THE LENDER?

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.

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