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Member
Posts: 10
Registered: ‎03-08-2007
0

Why is score so low when everything is so perfect?

Hi, I'm just trying to better guage how scoring works even when I do things right.
 
TU and Ex are in the mid 700's, but Equifax is at 619.. more than 120 or so points lower.
 
Information in all three agencies' reports collected here at myfico.com appear identical.
 
The good facts:
 
1) I've never been late even 1 day on any card or account in my entire life, nor ever missed any payment in my entire life.
2) I have credit cards with limits of 40,000 and 25,000 and 15,000 and 7,500 and 1,000.
3) I have balances on those cards of 900, 0, 1,200, 150,, and 0. Each month balances get up to about this, and then are paid off in full.
4) I have mortgages paid in full, car loans (1 open and 1 paid), a couple store credit cards with zero balances never used, and some regular credit cards used---making a healthy mix of credit use.
 
The bad facts:
 
1) I rate shop fairly often. Meaning that when a credit card company says we won't know what the interest rate is until you're approved, I may apply but then decline to open the account after they've processed my app. The result: I have over a dozen hard inquiries listed in each agency report. I've applied for credit as recently as two to three times this month alone.
2) While I paid off one car loan, the more recent one is only two months old and so very little of it has been paid back.
3) I paid off my mortgages in full after only a year's worth of history... so not much history.
4) My total credit history is barely 2 or so years old... basically nothing exists before that because I used to pay cash for everything.
 
 
So I guess I'm at a loss as to why I'm rated so very badly by Equifax at 619 and not particularly great by the others. I have over 90k in credit card limits I barely use any at all. While I've sometimes charged almost 20,000 to a card in the past (about 5 months ago; some really big purchases), I then paid it all off in two months.. and today I even keep a low <10% balance since then and it hasn't helped all that much.. although did bring Equifax out from the mid/low 500s into low 600's.
 
What more can I do?
 
Thanks for any insight as to what's going on here... thanks!
New Visitor
Posts: 2
Registered: ‎03-08-2007
0

This has everything to do with the fact that you have only two years of credit

History combined with new accounts and hard inquiries. The fastest way to solve your main problem(length of accounts) is to ask someone in your family with excellent credit and a credit card from a major bank (BofA, Chase, Citi) to add you as an authorized user. Please verify their history on this card first! You will pick up their entire credit history extending your profile to 10 years and bumping your score by as much as 65 Pts. When they add you make sure they provide your SS# to the creditor so they will report the history. Amex does this as well>
Member
Posts: 10
Registered: ‎03-08-2007
0

Thanks

Albeit a bit risky advice, that does make sense. And, I suppose only that person's credit history with that particular card they've added me to will be evaluated. Not sure why I didn't think of this route myself given I helped my spouse this very way by adding high credit limits/available credit to their report with a couple cards. Thanks again. Any other advice is also welcome.
New Visitor
Posts: 2
Registered: ‎03-08-2007
0

It is risky in the short Term

However in the long term you have the ability to have the account removed from your credit if you choose. Should the primary card holder have a late payment in the future you can call the credit and request that it be removed as you are not a responsible party. The creditor will usually remove the account with ni hassle. Also since you are using the card to extend you overall credit time profile you can have yourself removed from the card just after it reports to the bureus and the history will stay but show account closed. This will result in the end in a higher score than you have now but not as high as it would be if you left the account open since this will be your longest account. If you want to remove the risk entirly ask the person to sell or give you the account. This is accomplished by adding you as a "joint" card holder. You will be jointly responsible for the account at this point. After 90 days you can then request to have the primary card holder relieved of responsibility. With you good credit history you will no dought be approved and the entire account will become yours including all the history and none of the risk after the 90 days. there is alot of good tips at the scoredriver website.
Member
Posts: 10
Registered: ‎03-08-2007
0

Very good points

You make a convincing argument Smiley Happy Only trouble now is finding a friend or family member with a perfect or good credit card history with several years history on it.
 
Also, didn't know about the ability to transfer an account by adding another join cardholder and then later removing the first cardholder---so thank you for that.
 
One thing that's not been that logical in my opinion is a friend who's got a better Equifax rating than I do despite having credit card limits only in the hundreds of dollars, and while he's not missed any payments in the last one-and-a-half to two years or so, before that he had many missed payments, collections, and chargeoffs... but his overal credit profile isn't as "thin" as mine since it goes back at least 6 or 7 years with history---even tho most of the early was bad. Crazy.
 
 
New Visitor
Posts: 1
Registered: ‎03-14-2007
0

PUBLIC RECORDS

I HAVE 122K JUDGEMENT LISTED ONLY ON MY EQUIFAX CREDIT REPORT.  tHIS JUDGEMENT WAS ENTERED ON A MORTGAGE IN FLORIDA.  THE JUDGEMENT WAS ENTERED AFTER THE DEBT WAS DISCHARGED CHAPTER 7.  THE JUDGEMENT IS A "IN REM SUMMARY JUDGEMENT" VICE A " IN PERSONAM" JUDGEMENT. I HAVE SPOKEN TO MY BANKRUPTCY ATTORNEY AND ALSO TO THE MORTGAGE COMPANY ATTORNEY AND THEY BOTH INFORM ME I AM NOT LIABLE FOR THE DEBT.  I HAVE LETTERS FROM BOTH ATTORNEYS STAING AS MUCH.  I HAVE PREVIOUSLY PROVIDED THIS INFORMATION TO EQUIFAX THRU THERE DISPUTE PROCESS WITH NO LUCK.  HELP !!!!!!!!!!!! I AM TRYING TO BUY A HOME BUT THIS JUDGEMENT IS KILLING ME AS FAR AS OBTAING A MORTGAGE!!!!!!!!
Visitor
Posts: 1
Registered: ‎03-15-2007
0

Public Record dispute

I HAVE LETTERS FROM BOTH ATTORNEYS STATING AS MUCH.
I HAVE PREVIOUSLY PROVIDED THIS INFORMATION TO EQUIFAX THROUGH THERE DISPUTE PROCESS WITH NO LUCK.  HELP !!!!!!!!!!!!
 
Dispute again registered mail this time.
They have to prove you owe the debt.
 
Collect the letters from the lawyers that state you are clear of liability.
File the dispute in writing every two weeks.
Dispute forms and stamps are cheap.
Regular Contributor
Posts: 252
Registered: ‎03-16-2007
0

That's a lot of rate shopping

The rate shopping is what's killing your score, especially when combined with such a new file. I have a paid chargeoff and a few lates here and there (all more than 2 years old, and only on two accounts other than the chargeoff), my highest reporting credit limit is less than 10% of yours. My oldest tradeline is 15 years old, and I have two inquiries on Equifax. I do have a fairly thick file (about 40 tradelines). ...and my Equifax score is higher (less than 10 points, though). History and keeping tradelines open account for a lot. Churning hurts you.
Member
Posts: 10
Registered: ‎03-08-2007
0

thanks

Thanks, Skiffy.
 
It does appear that inquiries add up quickly and coupled with a 'thin file' you can really see low scores. Patience and time are what I need to focus on now, I suppose. Smiley Happy
 
 
New Member
Posts: 8
Registered: ‎03-16-2007
0

Wow!

My EQ Fico is better than yours and I have a bankruptcy, 3 charge-offs and 3 collections.  But I think what helps my score is the fact that my student loans are always paid on time and my 2 newest accounts have been paid on time.  The average age of my accounts is 9 years.
 
You said that you haven't had credit for very long and that too will lower your score.  So I would say with that many inquiries and age of credit history is what is hurting your score.  You also have alot of credit cards.  If you have never charged anything over $20,000 at a time then why keep the lower 3 cards.  With your high credit limits I would only keep the top 2 or 3.  I would refrain from rate shopping because that seems to be doing the most damage and now you will have to wait 2 years for them to fall off.
 
And come to think of it, if you didn't have credit until 2 years ago really your scores are not that bad.  Most people who start to build credit have a 300 rating, so in 2 years you have really built up your credit.  It really isn't that bad considering you just started. 
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