topic Is 700 the new 800? in Understanding FICO® Scoring

Is 700 the new 800?

Anonymous — Mon, 09 Nov 2009 20:35:43 GMT

With all the financial mess going on, people filing BK, getting foreclosed on, etc...am I right to think that the credit-granting agencies are going to have to slack their standards eventually? It seems that a "good" FICO score will be lower than it used to be just due to all those people who will have scores in the 500s and 600s, and those of us in the 700s might be bumped to "very good," or even "great" status. Does this make sense? Or will those people just not be in the mix of credit any longer? I know when I filed BK in 1991 I just didn't have anything until it was paid and discharged in 1995.

Re: Is 700 the new 800?

marty56 — Thu, 12 Nov 2009 15:07:18 GMT

More likely 760 is the new 720. My reason is that it seems they are being more restrictive not less.

Message Edited by marty56 on 11-12-2009 07:07 AM

Re: Is 700 the new 800?

Anonymous — Tue, 10 Nov 2009 13:26:46 GMT

I understand what you're saying Davey. I've thought about this a lot. It would seem that something is going to have to give.

Even when the banks start loosening up and loaning money, millions of people are going to have crappy credit (500s and low 600s). The Fed govt is going to have to either remove the foreclosures/short sales from people's credit, or the lending agencies will have to lower standards.

I, personally, will be hugely pissed if they wipe the credit (which I don't hink they will do anyway). How are people that are overextended and foreclose, any different from me who doesn't have a foreclosure, but I was overextended elsewhere and have some bad marks on my credit? It wouldn't be fair.

But something will have to give.

Re: Is 700 the new 800?

marty56 — Tue, 10 Nov 2009 14:05:23 GMT

@Anonymous wrote:
The Fed govt is going to have to either remove the foreclosures/short sales from people's credit, or the lending agencies will have to lower standards.

Option #1 would undermine the whole concept of credit and credit reports. Why should anyone with a 70k short sale be treated diffreently than someone with 70k of CC debt or 70k of medical debt. Option #2 is the main reason why we got where we are today.

Re: Is 700 the new 800?

BungalowMo — Wed, 11 Nov 2009 19:13:55 GMT

Hard to say which way that will work. I know a lot of folks who were ok with their payments & all have gone totally south due to job loss & the domino effect it had. CC's in collection & CO status...defaults all over the place & forclosures & BK's. You'd have to think that banks would look favorably upon those of us who have been able to weather this storm of the last couple years & keep our heads & FICO's above water.

Little side note...I heard a clip on the radio the other day about how Cap 1 has had something like 30M in cc default last quarter! All I could think was...Oh no, you folks will never get those baddies removed cuz Cap 1 doesn't forgive anyone!!!!

Re: Is 700 the new 800?

Anonymous — Thu, 12 Nov 2009 13:45:55 GMT

@marty56 wrote:
More liekly 760 is the new 720. My reason isthat it seems the are being more restrictive not less.

Right on... like it or not, this is where the path leads.

Re: Is 700 the new 800?

Anonymous — Tue, 17 Nov 2009 13:31:05 GMT

I had Cap One remove a paid CC CO for me about a year ago. I then tried to get some lates on another card removed, but no luck. I assume, based on 99.99% of people not having luck with Cap One, that I just got extremely lucky and it was somebody's last day or something.