Reply
Established Member
Posts: 24
Registered: ‎03-26-2013
0

FICO scores

I have a question about FICO scores.  About eight years ago I filed for bankruptcy; two years later (over six years ago) I had a late payment (60 days) for $401 for a tuition loan, primarily because I didn’t know they would report it (my fault).  Both of these items are still on my credit report.  When I filed for bankruptcy most of my debt was student loan debt in the tune of over $50,000.  I also had medical bills and some credit card debt, which got wiped out and has long been off my credit reports.  When I graduated college (three years ago), I started paying back those student loans and quickly pulled my two FICO scores (TU 707 and EQ 714); the only adverse items at this time were the Bankruptcy and the late payment.  On the report it said that I had the bankruptcy, I had too much debt (poor utilization ratio), and I didn’t have any mortgages or revolving accounts.  I figured “no problem, I will just pay off my student loans and that will improve my scores.”  I have checked my FICO scores intermittently since then and my scores are as follows: (TU 711 and EQ 714).  I don’t get it, is there a maximum FICO limit for people with public records?  Every few months I check my scores and nothing, my EQ score is stuck at 714 and my TU score has increased a mere four points.  During this time I have paid all my student loan debt, my account ages and credit history have increased, and the time my bankruptcy and late payment have increased.  Nothing else on the credit reports has changed:  no new accounts, no inquiries, no late payments, no accounts have dropped out, nothing….  Does this mean that I represent the same credit risk today than I did three years ago?  I find that hard to believe.  If I was a lender I would trust the guy with no debt over the guy with over $50,000 of student load debt.  Right?  According to my credit scores, that is not the case. 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: FICO scores

BKs can really do a number on your FICO, even through the very end (7 or 10 yrs depending on the BK). I can only recall a small few posters in here who hit 750 and beyond with a BK reporting. I think the highest I've ever seen was 775, but that poster had decades of history despite the BK.

 

Installment utilization is a tiny part of FICO scoring. You really don't gain points by paying off loans, just like you don't get heavily dinged when adding a 6-figure mortgage.

 

 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.