09-14-2013 11:10 PM
When you buy a score, in the FICO Score Summary it shows the following:
Amount of debt
Length of credit history
Amount of new credit.
Next to it it states "How You Rate" with the following:
I have been debt free approaching a year and amount of debt still states "Good." How do I get it to Great if I already owe nothing? I had over $50,000 in loans and at that time it showed up as Not Good, yet after paying the loans off it is stuck at Good? My understanding is that a portion of your score is how much you owe, yet my score improved zero points. I am at the point now that I am considering waiting a year and a half to two years and saving up the cash to buy a new home (new construction). I think this FICO thing is rigged. I can't prove it, but it just feels that way.
09-15-2013 07:35 AM
Look in your "Credit At-A-Glance" page within your FICO report. Does it show all $0 balances? If not, than can be a culprit. Another thing that might come into play is your mix of credit. How many open CCs do you have?
09-15-2013 02:43 PM
Yes, all balances show $0. As far as mix of credit, I only have installment loans (all closed) and that is what I suspect is hurting my scores. I tried to remedy this by applying for a Sears Card and was turned down. I was told my score was too low 618 Equifax. I suspect they didn't use the same FICO Score as myFICO (my FICO Equifax 714), as the range they stated in the letter was 250-900. I believe that is different from this website. It just seems like I only have two choices now, pay cash for the rest of my life, or get a secured card to get the ball rolling. Even if I did qualify for a mortgage, at what rate would it be? I just find this credit scoring totally useless. Oh, after applying for the credit card my score on myFICO went down to 709. Unbelievable!
09-15-2013 04:06 PM
What accounts do you have open? Something has to be open otherwise a FICO wouldn't generate.
YMMV on the rate and the mortgage product. If you go FHA, for example, your rate is relatively the same whether your score is low or high. Conversely, a conventional loan would largely hedge on your FICO, income, DTI, amt borrowed vs. value, down payment, etc.
The 900-score range could be a CC-enhanced FICO which weighs your CC experience over your other TLs.
09-15-2013 06:13 PM
Great. I applied for that credit card two to three months ago. So if I looked up my scores now, I might find that I have no score at all. I Googled "No FICO Score" and it states that you might not have a score six months after the last account reported. This means that from the last time they reported a zero balance I had six months to open up something new (I was still within that window when I applied for the Sears Card). It looks like I am screwed now.