@Thomas_Thumb wrote:The Fico models look at posted balances on cards relative to card credit limits. They do not factor in name recognition. From a scoring perspective, regional bank cards will not be evaluated any differently than national bank cards.There may be some advantages to having a credit card issued from a regional bank where you maintain accounts.
Note: credit limits do play a roll in scoring. Higher limit cards help keep utilization % low both on a per card basis and in aggregate. If you local bank offer you a $2500 CL but the national bank offers a $7500 CL, go with the national (assuming interest terms are similar and both cards have no yearly fee)
As far as where cards are accepted, I think the primary factor is Visa/Mastercard and not the issuing bank - but that may be different when traveling internationally.
+1
I agree. I do not think who you have exactly matters. It's the numbers that count.
@Anonymous wrote:
Utilization counts, age counts, who counts. You can't get an 850 score with department store cards and no collections.
According to whom? =/
There's no material difference under FICO 8 between a store card and a national bank card, they are counted identically from every datapoint we have. Ergo, someone could get an 850 with just store cards.
Admittedly why someone would bother with that without taking any of the higher tier credit products available to them is beyond my ken, but it could be done.
There were breakouts in older versions, namely FICO NextGen 1 and 2, but these never really caught on and since the latter was released in 2003, there's very few lenders still using it (we know of 2).
@DIYcredit wrote:Hi,
I was searching through this great forum for a while now. I could never find the direct answer to this question.I read somewhere probability last year that you can get more Fico credit score points with a cc from a national bank like [Chase,and Bank of America] rather than a cc from a regional bank like [Capital One].It stated regional bank cards are easier to get and gives you less Fico credit points.Obviously with that being said the national bank cards are harder too get.When anyone starts rebuilding you usually can only get a cc for rebuilding.Not BOA or Chase.Currently I have Two capital One cc's and a gas card that I had '02 .I've been doing great. Does any experts know if you get more Fico credit score points for a national bank card ? P.S If anything here seems inaccurate please give me the correct answer,I'm here to learn.
Thanks,
DIYcredit
IMHO there's no difference for FICO purposes between a regional bank and a national bank.
IMHO Capital One is a national bank, not a regional bank.
@CreditDunce wrote:FICO 04 gave bonus points for national banks vs small banks and CUs. You can search the old threads to find some po'd people when they learned their NFCU 25k cards counted less than someone $300 First Premier card. For what it is worth, Cap1 would be a national bank, not regional bank.
The penalty is tiny. Back in 2009 when I applied for a mortgage, I didn't have an open bank credit card. One of my reason codes was recent history with a bank credit card. I had a closed bank card on at least one of my CR's. IIRC my EX and EQ scores were 820 and 809. TU was 78x. However, I think the reason TU was so low was because I had paid down the util of my CU CC right before the mortgage pull. I don't think TU had updated yet. The penalty isn't very big apparently.
I was curious at the time about the lack of bank credit card history. I found an article/interview talking about the release of FICO 04. In the interview, the FICO representative said it was best to have a mix of CU and bank credit cards. If you only had one or the other, bank credit cards were best from a FICO standpoint. However, I have never found confirmation there is a credit mix bonus with FICO 04. However, there are codes for lack of bank revolving history.
There aren't codes for retail or CU cards in FICO 04 that I could find, and there certainly were for retail cards in NextGen (2001 / 2003); my understanding at any rate was that all cards were equivalent as of FICO 04 and later. Almost undoubtedly that's the case for FICO 8, and certainly our data shows there's no difference in installment loans... CFA's notwithstanding. I could be mistaken on FICO 04, just because it's not in the reason codes admittedly doesn't mean it's not there... did you have open retail or CU lines at the time you got that reason code about bank cards in 2009?
Given the confluence in the time domain with those and the release of the FICO 04 algorithm might've muddied the waters when it came to FICO releases and similar discussions here.