Understanding FICO® Scoring

[angelnyc]

For example, if you have a student loan, and pay it entirely off, since that is 10 percent of your score (diversified credit), how high can you credit score be w/credit cards alone? (assuming you follow the under 10%debt to untilization ratio, always pay on time, and have a descent AAoA  10 yr+ and )

Is it possible to still achieve high credit scores without active loans?

[Gunnar419]

Absolutely. I know from experience that you can at least get scores in the high 700s with only credit cards. I've got two scores over 760 and one getting close to that with only credit cards.

Don't know if you can get into the 800s on ccs alone, but you can definitely do okay.

[92235]

When I applied for an AMEX BCE I got a letter saying that my EX FICO was 790. I have five credit cards and no other accounts reporting. My little brother got his first credit card and his EQ on here was something like 745 with only once credit card.

[llecs]

I know of at least two former mods on here who hit into the 800s with no opened or closed loans reporting, only CCs. While a loan is a part of a healthy mix, it's only a tiny part of the score.

[bettercreditguy1]

You can also reach the 800 club W/O credit cards. My son had an 835 with only auto loans.

[angelnyc]

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llecs wrote:

I know of at least two former mods on here who hit into the 800s with no opened or closed loans reporting, only CCs. While a loan is a part of a healthy mix, it's only a tiny part of the score.

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Just CC's? So no mortgage or other types of credit?

[llecs]

No, no mortgages, loans, car, etc. Just CCs. Fused was one of the two. I think I know the other but I'd have to confirm.

[angelnyc]

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llecs wrote:

No, no mortgages, loans, car, etc. Just CCs. Fused was one of the two. I think I know the other but I'd have to confirm.

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Wow quite insightful, thanks for sharing that!

[llecs]

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angelnyc wrote:

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llecs wrote:

No, no mortgages, loans, car, etc. Just CCs. Fused was one of the two. I think I know the other but I'd have to confirm.

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Wow quite insightful, thanks for sharing that!

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I'll often see posters in here asking about adding a loan to help their mix of credit, or worse, posters adamant that adding a loan will help their score. It's easy to hit 800 without one and never made sense to me to spend hundreds or even thousands on a loan just to potentially help a FICO score. Now if someone needed a loan, like a mortgage, then by all means. But nobody should get a loan just for a FICO score.

[angelnyc]

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llecs wrote:

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angelnyc wrote:

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llecs wrote:

No, no mortgages, loans, car, etc. Just CCs. Fused was one of the two. I think I know the other but I'd have to confirm.

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Wow quite insightful, thanks for sharing that!

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I'll often see posters in here asking about adding a loan to help their mix of credit, or worse, posters adamant that adding a loan will help their score. It's easy to hit 800 without one and never made sense to me to spend hundreds or even thousands on a loan just to potentially help a FICO score. Now if someone needed a loan, like a mortgage, then by all means. But nobody should get a loan just for a FICO score.

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I think that is very helpful llecs, maybe you should make a static post informing users about making such an error, this def. has helped me clear my  mind on such consideration for the future.  Hopefully others who have ever had this same curiosity come across this thread.