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New Member
tb_purchasesonline
Posts: 6
Registered: ‎12-11-2012

FICO Score Breakdown (i.e., "Credit Mix")

Overall, I'm very satisfied w/ my FICO score (817 as of today).  

 

Based on existing literature, I know how the FICO score breaks down (i.e., 35% Payment History, 30% Amounts Owed, 15% Length of Credit History, 10% New Credit, 10% Types of Credit or "Other").

 

My question is pertaining the 10% of "Credit Mix".   Based on my most recent credit report, I score "Excellent" on all categories but only "Fair" on the credit mix.  

 

From my perspective (and I think it's somewhat reflected in my high score), I have a good credit mix.   That is, I have the following type of credit account:

- 2 mortgage accounts (mortgage and home equity) -- approximately 90% of my debt

- 2 installment accounts (car loans) -- approximately 9% of my debt

- 10 credit cards (only 1 card with a balance) -- approximately 1% of my debt

 

Based on the information above, is there anything obvious that "sticks out" as to why the "credit mix" is considered only "fair" (again, in contrast to all else being excellent)?

 

Thank you,

Tom

 

 

Regular Contributor
nois
Posts: 120
Registered: ‎07-14-2009

Re: FICO Score Breakdown (i.e., "Credit Mix")


tb_purchasesonline wrote:

Overall, I'm very satisfied w/ my FICO score (817 as of today).  

 

Based on existing literature, I know how the FICO score breaks down (i.e., 35% Payment History, 30% Amounts Owed, 15% Length of Credit History, 10% New Credit, 10% Types of Credit or "Other").

 

My question is pertaining the 10% of "Credit Mix".   Based on my most recent credit report, I score "Excellent" on all categories but only "Fair" on the credit mix.  

 

From my perspective (and I think it's somewhat reflected in my high score), I have a good credit mix.   That is, I have the following type of credit account:

- 2 mortgage accounts (mortgage and home equity) -- approximately 90% of my debt

- 2 installment accounts (car loans) -- approximately 9% of my debt

- 10 credit cards (only 1 card with a balance) -- approximately 1% of my debt

 

Based on the information above, is there anything obvious that "sticks out" as to why the "credit mix" is considered only "fair" (again, in contrast to all else being excellent)?

 

Thank you,

Tom

 

 


FICO does score each of the categories in the percentages you mentioned above.

 

However, from your description of the report you're referring to, it sounds like you may have a non-FICO score because reports you get from myFICO.com do not grade your "Credit Mix" on a "Excellent, Fair, etc" basis.  Those grades are used in other scoring model reports such as Vantage scores - but their score category wieghts (e.g. 10% for Types of Credit) may be different from the FICO model.

 

To get an accurate idea of what your FICO really is, you might consider getting your EQ or TU report from this site.


FEB 2014 EQ: 798 EX: 780 TU: 798
New Member
tb_purchasesonline
Posts: 6
Registered: ‎12-11-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")

nois:

 

Thanks for the feedback... I appreciate it.

 

All information is based on Equifax's online report.

 

Thanks,

Tom

Valued Contributor
my-own-fico
Posts: 1,118
Registered: ‎01-05-2010

Re: FICO Score Breakdown (i.e., "Credit Mix")

Your score and your credit report are part of the same score report? I ask because I don't remember a myFICO report commenting on the credit mix. Did you get it from the Equifax web site? If so, is the score explicitly listed as a FICO score rather than a credit score?

Your credit mix certainly looks excellent to me. As you noted, its impact is small. And if the score is EQ FICO, it's unlikely to increase no matter what, as you have joined a handful of EQ 817 people who have hit the ceiling. Congratulations!

Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")

Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.

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Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")


Cdnewmanpac wrote:

Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.


Seriously?  This may answer my question for what to do with my unsecured personal loan when I'm looking to apply for an auto loan in the spring.  I planned to pay it off with taxes, but maybe I'll pay off all but a portion and milk it for a bit longer.  That's really interesting

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Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007

Re: FICO Score Breakdown (i.e., "Credit Mix")

Based upon the info in the original post, the score is NOT a FICO score. It is likely an Equifax score although it is possible to buy a real FICO score on the Equifax web site. Look at the report again and let us know.

 

FAKO advice is irrelvant to any score actually used by lenders.

 

Established Contributor
ccnewcc
Posts: 560
Registered: ‎09-29-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")


Jutz wrote:

Cdnewmanpac wrote:

Leaving aside the fako vs fico thing, there is one element missing from your mix: uncollateralized installment debt. Mortgages and auto loans are considered collateralized (or "secured", though that term freaks out people on this board) because if you default, there is a physical asset the lender can recover. Personal loans are considered uncollateralized or unsecured, because there is nothing to recover if you default. FICO does consider this a separate category. This past July, I took out a personal loan for some home renovation (not a home equity loan). Despite it being a new account, which would usually drop your score, my score went up by 15 points. Nothing else changed. I have no idea if the impact would be that big for someone already over 800, as I was in the 690s when I did it.


Seriously?  This may answer my question for what to do with my unsecured personal loan when I'm looking to apply for an auto loan in the spring.  I planned to pay it off with taxes, but maybe I'll pay off all but a portion and milk it for a bit longer.  That's really interesting


I'd bet that a more satisfying feeling would be to pay off your loan :smileywink:

New Member
tb_purchasesonline
Posts: 6
Registered: ‎12-11-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")

Jutz -- good point.  I had not considered that.   I'll look into this credit option.   Thanks!

New Member
tb_purchasesonline
Posts: 6
Registered: ‎12-11-2012

Re: FICO Score Breakdown (i.e., "Credit Mix")

GregB -- I think you're right.   Mine is called an Equifax Credit Score.    However, it is somewhat consistent (+/- 2 points) with TransUnions and Experian's credit scores.  

 

It's my understanding that lenders "look" at the 3 major credit bureaus.   While MyFICO.com is a great site, I'm not sure if lenders would consider it a superceding site (in respect to the 3 credit bureaus).    Am I right or wrong w/ this viewpoint?  (latter is a serious questions... I'm not being facetious).

 

In the end, whether it's called "FICO score", "Beacon score", "Equifax Score" or else -- I'd like to make sure that I watch/monitor the score that's most authoritative.    Besides, even if my Equifax score is not a true FICO score, I couldn't image there would be a huge difference as far as points is concerned.

 

Thoughts?


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