topic Re: Score low and risk high apparently.... in Understanding FICO® Scoring

Score low and risk high apparently....

KeithW — Sat, 29 Feb 2020 20:06:45 GMT

As you can see below, there is quite a bit of green, but my score is 640. They say my risk of getting into "serious trouble is 25%. I recently applied for Affirm 0% financing to buy a $1,000 product and was denied.

Obviously I am a high risk borrower, but it seems like from all the Above Average ratings and calculating the percentage impact, that I should be at least average.

Re: Score low and risk high apparently....

TattnallTrio — Sat, 29 Feb 2020 20:12:41 GMT

I think Affirm is a weird one. They approved me for $2,900 for a Peloton workout machine but only $700 on a virtual card. Walmart is $1,300.
my scores and reports aren't as good as yours

Re: Score low and risk high apparently....

Anonymous — Sat, 29 Feb 2020 20:19:50 GMT

It's because your debt is relatively high considering you have a "fair" rating which counts for 30% of your scores.

Re: Score low and risk high apparently....

AllZero — Sat, 29 Feb 2020 20:50:57 GMT

As noted above, your utilization at 75% had a significant factor in your denial. When seeking credit, it's recommended to optimize your report.

https://www.myfico.com/credit-education/whats-in-your-credit-score

Re: Score low and risk high apparently....

Remedios — Sat, 29 Feb 2020 22:10:52 GMT

Your utilization is very high and that makes you a risky borrower.

If you cannot pay it without getting a personal loan, that right there explains why you're considered a "higher risk" at this time.

With such high utilization, getting a personal loan under anything resembling decent terms is going to be very hard.

You will probably need to make a plan on how to get utilization down a bit to a more manageable levels, then see what you can do personal loan wise.

Re: Score low and risk high apparently....

donkort — Sat, 29 Feb 2020 22:19:28 GMT

How recent is the 30-day late?

Re: Score low and risk high apparently....

KeithW — Sun, 01 Mar 2020 00:11:37 GMT

The 30 day late was from 2018.

The high ratio makes up 30%, but having 70% great seems like it would mean more.

Re: Score low and risk high apparently....

donkort — Sun, 01 Mar 2020 00:59:27 GMT

The 30-day late might have a significant effect on your score, though it's possible it does not.

Do you have any other derogatories?

I had a 30-day late which lowered my score about 70 points in 2013....but the effect of it waned considerably in a few months.

75% utilization stifles the score. 60% utilization stifled mine. My score went up over 100 points when I reduced my utilization from 60% to 4%.

Re: Score low and risk high apparently....

KeithW — Sun, 01 Mar 2020 01:16:40 GMT

No other derogatory items. If my score was 840, or whatever perfect is, even if the util. Makes up 30% and was as bad as possible, that shouldn't be able to drop it this much. I am no math whiz, but I know this doesn't add up.

Re: Score low and risk high apparently....

donkort — Sun, 01 Mar 2020 01:17:52 GMT

Take heart.....credit cards aren't rushing to have me as a client, either......

Re: Score low and risk high apparently....

donkort — Sun, 01 Mar 2020 01:24:42 GMT

I had one 30-day late in 13 years.....and no other derogatories.....and my score stayed in the 660-680 range throughout that time. Because of my high utilization. My score was probably higher because of the length of time I've been using credit. My auto scores were in the 630s/640s, even though I went through two three-year leases with all on-time payments.

My 30-day late (reported only to TransUnion) caused my TransUnion score to go down to about 615 briefly.

Re: Score low and risk high apparently....

thornback — Sun, 01 Mar 2020 01:33:05 GMT

@KeithW wrote:
No other derogatory items. If my score was 840, or whatever perfect is, even if the util. Makes up 30% and was as bad as possible, that shouldn't be able to drop it this much. I am no math whiz, but I know this doesn't add up.

That single 30-day late could be costing you 30-60 points (depends on profile). It's true once it ages past the 2 year mark you start regaining some of those points but it will continue to hold your scores down til it drops completely.

Your aggregate utilization being 75% is a real score killer (but fixable). If we generally see an average of ~10 points lost per utilization threshold crossed (9%, 29%, 49%, 69%, 89%) then you're looking at least 40 points lost from high aggregate utilization alone; I wouldn't hesitate to suggest it's more -- and that's not including additional scoring penalties from high individual card utilization.

Re: Score low and risk high apparently....

KeithW — Sun, 01 Mar 2020 03:16:48 GMT

Thorn,

I am going to get my utilization down in the 60s soon and see if that makes a difference. I wish I could get the 30-day off, but Ford Credit has told me no, even though I have bought my last two vehicles through them at $55K a pop.

Re: Score low and risk high apparently....

AllZero — Sun, 01 Mar 2020 03:43:11 GMT

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

Re: Score low and risk high apparently....

Anonymous — Sun, 01 Mar 2020 23:46:53 GMT

I just checked mine and apparently I’m 13% risk.

Not sure where that percentage comes from and its accuracy

Re: Score low and risk high apparently....

donkort — Mon, 02 Mar 2020 00:36:26 GMT

It means your score is between 650 and 699.

Once you get to 700, it becomes a 6% risk.

You have "good" FICO 8 scores.

Re: Score low and risk high apparently....

Anonymous — Mon, 02 Mar 2020 01:34:20 GMT

Ok thanks. I just checked and my Equifax is saying 6%. Where as TU and Ex 13

Re: Score low and risk high apparently....

KeithW — Mon, 02 Mar 2020 02:47:55 GMT

I suppose there would be good and bad, but I have always been kind of irked that the mere fact that I have never filed bankruptcy or not paid a justified debt doesn't do anything positive for me. All is based on some FICO numbers. The only possible exception was years ago when I got my BOA card. I had a score a little lower than now, low 600s I think and when I applied for the card I had a guy call me and he asked a bunch of questions and asked about bankruptcy and if I had been sued over a debt. After talking with me he approved me for a $7K credit limit card.

Re: Score low and risk high apparently....

AllZero — Mon, 02 Mar 2020 04:12:40 GMT

@KeithW wrote:
I suppose there would be good and bad, but I have always been kind of irked that the mere fact that I have never filed bankruptcy or not paid a justified debt doesn't do anything positive for me. All is based on some FICO numbers. The only possible exception was years ago when I got my BOA card. I had a score a little lower than now, low 600s I think and when I applied for the card I had a guy call me and he asked a bunch of questions and asked about bankruptcy and if I had been sued over a debt. After talking with me he approved me for a $7K credit limit card.

Once you understand FICO scoring a little bit more, you can use it in your favor. When seeking credit, it's best to pretty up your FICO scores. e.g. Do AZEO All Zero Except One card reporting a small balance $5-$10. If not credit seeking, then go on with your standard payment methods that work well for you.

Re: Score low and risk high apparently....

Anonymous — Mon, 02 Mar 2020 14:53:50 GMT

@donkort wrote:
Take heart.....credit cards aren't rushing to have me as a client, either......

I'm in the 800 club and I don't get any credit card pre-approvals or solicitations either. My wife is also in the 800 club and she gets tons of them. There is no rhyme or reason to it, and NO, I have not opted out of anything nor do I have any blocks or holds on my credit files.