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haulingthescoreup
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Registered: ‎04-01-2007
Re: Expanded "FICO High Achievers" (scores of 760 and above) characteristics list

marty56 wrote:
I wonder if that is because they are secured loans. It is also interesting to me that if you max a CC out, you get a score hit but FICO has no interest that a ARM mortgage that goes up



I'm sure that you're right. FICO rewards highly-disciplined management of risk, and there is a lot more risk represented by credit cards than car loans and mortgages. No one wants to look out the window at midnight and see their car on the hook, vanishing down the street. Of course, now you read about people walking away from their mortgages, because they're homes have lost so much value that they are seriously upside-down.

This is also why it's so upsetting for HELOC holders like MV, whose credit limit isn't high enough to get EX to treat it as a mortgage. Even if the limit is "only" $25K, it's still secured by his home, and presumably MV and Mrs. MV would do whatever it took to keep the dining room and new roof from being repo'd.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007