08-18-2013 07:23 PM
Hey everyone, looks like a great forum --glad to have this as a resource.
My question is, "How can I see my Experian Fair Isaac v2 score, and how can I anticipate what it will look like with specific changes?"
I'm getting ready to commit to a large investment in my education, taking on debt to get going in the first year, and continuing to take loans for the following years. I'm an older student and have secured a private line of credit without a cosigner. I'm currently approved and everything is in place to start next month. However, while the line of credit has been approved for far more than I will need throughout my education, I recently learned that there is a credit pull each year, and in essence, I have to requalify in order to make a draw request for the following year. This year was not a problem as I have decent credit and my score was above their requirement, however next year I will have quite a lot more debt on my credit report, in the form of student loans that will be taken out this year (which will be in the "full deferral" option for repayment). I also have some consumer debt (credit cards maxed to the tune of $12k, with an excellent payment history) and cash on hand of about half that. I have talked to the credit servicer (Student Choice) and they have told me that if my score, which is pulled from Experian and uses the Fair Isaac Version 2 metric, comes back below 660, I will be denied further funding.
Given that I don't have the option of a cosigner, and that I will be heavily invested after the first year, I need to be able to anticipate where I'll be next year.
08-18-2013 08:28 PM
I honestly don't know which score version this website provides, but if you check in the other forums here, you can probably find many discussions that can help you out.
In general, the AMOUNT of installment debt you hold does not impact your credit score. A new installment account can impact your Average Age of Accounts, add an inquiry and result in a new account ding. The last two will fade over the course of the first year you have the account, so they should be gone by the time you apply for your next disbursement of funds. The impact on your AAoA will also lessen over time, and depends heavily on the rest of your report.
I think the best thing you can do is reduce the util on your credit cards over the next year. Maxed cards have a serious negative impact, and even getting that to 50%, or the ideal mark of >10% will bring your score up more than a new loan will bring it down.