topic Re: FICO Magic Numbers in Understanding FICO® Scoring

FICO Magic Numbers

Anonymous — Wed, 14 Apr 2010 18:16:30 GMT

So I'm (literally) trying to read every thread in this forum, and I'm learning tons and tons, but I just wanted to clarify a few things that I've read to confirm them, maybe having this info all in one place will help someone else. And please enlighten me on what I'm wrong on, or if you have more info. (Underlined are the ones I'm most interested, trying to rebuild my own credit, hence the name )

Inquiries

2 years = Fall of Report

1 year = Not a part of FICO calculation

6 months = Best time to wait in between inquiries

Baddies (varies by state, following is California)

2 years = Collections date stop mattering as heavily in scoring??

4 years = SOL

7 years = CR Time

The older the date, the less it counts in scoring?

Credit Cards

10 years = Closed Good accounts fall off

1 year = Anniversary of new card gives credit score boost??

2-3 years = Most companies want to see good payments for 2-3 years

6 months = Time to wait before asking for CLI on new accounts

Utilization

30% + = Not good

10% - 29% = Good

1% - 9% = Best

0% = Ok

What did I miss? What am I totally off on?

Re: FICO Magic Numbers

lkcrew426 — Wed, 14 Apr 2010 18:38:39 GMT

Inquiries
2 years = Fall of Report
1 year = Not a part of FICO calculation - The inquiries are not included in your score after this point but can affect the approval of other credit products.
6 months = Best time to wait in between inquiries -

Baddies (varies by state, following is California) - can't help here

Credit Cards
10 years = Closed Good accounts fall off - Correct!
1 year = Anniversary of new card gives credit score boost?? - Sometimes!! If you're lucky and depending on your other factors
2-3 years = Most companies want to see good payments for 2-3 years
6 months = Time to wait before asking for CLI on new accounts - GEMB is usually 4 months, and some others 12 months

Utilization
30% + = Not good
10% - 29% = Good
1% - 9% = Best
0% = Ok

I would rate 0% good, and 10-29% okay - but just because I see good as better than okay. Best is probably more like 1-5% and 5-9 is back to the good IMO

Re: FICO Magic Numbers

Anonymous — Wed, 14 Apr 2010 19:02:45 GMT

Thanks for your input!

Re: FICO Magic Numbers

MarineVietVet — Wed, 14 Apr 2010 19:28:28 GMT

@Anonymous wrote:
So I'm (literally) trying to read every thread in this forum, and I'm learning tons and tons, but I just wanted to clarify a few things that I've read to confirm them, maybe having this info all in one place will help someone else. And please enlighten me on what I'm wrong on, or if you have more info. (Underlined are the ones I'm most interested, trying to rebuild my own credit, hence the name )

Inquiries
2 years = Fall of Report
1 year = Not a part of FICO calculation Not included in scoring but a lender would stiil get nervous about multiple inquiries.
6 months = Best time to wait in between inquiries

Baddies (varies by state, following is California)
2 years = Collections date stop mattering as heavily in scoring?? I'm not sure about this. A collection is a major negative and I don't think it loses much impact after just 2 years. But I'm no expert on this.
4 years = SOL
7 years = CR Time
The older the date, the less it counts in scoring?

Credit Cards
10 years = Closed Good accounts fall off
1 year = Anniversary of new card gives credit score boost?? This seems to work in most cases depending on what remains in your credit file.
2-3 years = Most companies want to see good payments for 2-3 years
6 months = Time to wait before asking for CLI on new accounts

Utilization
30% + = Not good
10% - 29% = Good
1% - 9% = Best That seems to be the consensus of most folks here.
0% = Ok

What did I miss? What am I totally off on?

Re: FICO Magic Numbers

llecs — Wed, 14 Apr 2010 20:59:24 GMT

YMMV. FICO scoring and what a lender considers good or bad per what's reporting differ.

Inquiries - You are right about FICO scoring and reporting, but lenders' standards vary.

Baddies - vary by SOL. CRTP is 7 yrs on most baddies (e.g. COs, CAs, lates, etc.) but the FICO score impact of a collection can easily extend to the full 7 years. I've seen some posters remark that their scores shot up 50+ points when their last was removed due to CRTP. Even while other baddies reported, I had once CA come off at the end of 7 yrs and my FICOs increased around 20 points. Plus YMMV based on the lender. Some don't care if new or old and yet others care if any collections report, even if 7 yrs old. Now damage can fade over time depending on the CR.

CCs - 1-yr boost. Again, YMMV based on your CR. I've seen increases at 1 yr for some accounts and no increases on others. Depends on your scoring bucket, new accounts since, etc.

Util - yep. Per lending, YMMV. I've been denied for having too high of util at 18%.

Re: FICO Magic Numbers

AndySoCal — Thu, 15 Apr 2010 02:02:27 GMT

Just a reminder a CLI request to creditor will generate another inquiry on your credit report. If the credit card company does not increase it for you and you do not need it do not ask for a CLI.

Re: FICO Magic Numbers

Anonymous — Thu, 15 Apr 2010 05:42:31 GMT

@AndySoCal wrote:
Just a reminder a CLI request to creditor will generate another inquiry on your credit report. If the credit card company does not increase it for you and you do not need it do not ask for a CLI.

Really? I thought that was only some cards/companies. Like I thought Cap One was soft pull for CLIs. Not that they've done them lately

Re: FICO Magic Numbers

lkcrew426 — Thu, 15 Apr 2010 13:51:51 GMT

@Anonymous wrote:

@AndySoCal wrote:
Just a reminder a CLI request to creditor will generate another inquiry on your credit report. If the credit card company does not increase it for you and you do not need it do not ask for a CLI.
Really? I thought that was only some cards/companies. Like I thought Cap One was soft pull for CLIs. Not that they've done them lately

US Bank hard pulled for my CLI. GEMB - Walmart did not. I think it is still a little unclear with the new law. It seems some that did not use to hard, are now doing it.

Re: FICO Magic Numbers

Anonymous — Thu, 15 Apr 2010 14:00:06 GMT

So true. BofA said they now have to hard pull because of the new law. I thought that was an excuse they were using to get me to not ask for a CLI, but I guess not. Boooooooo, so far that's the only thing I've heard about the new law not working for me.

Re: FICO Magic Numbers

RobertEG — Fri, 16 Apr 2010 04:21:19 GMT

There is absoluttely no regulated drop off date of " OC accounts" from your CR. Some may drop them at ten years after closing, but in my opinion, they should not. Why? Because FCRA 605(b) says, that for higher transaction inquirie3s, the creditor is entitled to your history back 'til the days of Moses.

FCRA 605(a) only regulates restriction of what a CRA can include in any credit reprort that they issue. Any OC can report forever. It is up to the CRA to then determine, under the provisions of FCRA 605(a), what they can and cannot post in your credit report.

Posting of a CA is a major derog, and until it drops at 7 1/2 years from the DOFD on the OC account. Why would you expect continued delinquency on unpaid debt to give a favorable view of your credit risk? Might it not be just the opposite?

Re: FICO Magic Numbers

Anonymous — Fri, 16 Apr 2010 04:35:32 GMT

I'm not talking about unpaid debt, at least in my cases. All my debt is paid off.

Re: FICO Magic Numbers

Jazzzy — Fri, 16 Apr 2010 12:13:46 GMT

The piece I would add to your list under credit cards involves how many you let report. You should have less than half of your credit cards showing a balance. That said...my husband and I lose between 5-7 points each time we let 3 cards out of 7 report vs. if we have just 2 cards reporting. So, while it's "good" to have less than half report, I believe it's "best" to have as few as possible report.

I guess I don't see utilization exactly as you do. There is no way that I would see 29% reporting as "good." That's way too high for FICO scoring purposes.

Re: FICO Magic Numbers

Anonymous — Mon, 19 Apr 2010 23:01:08 GMT

@RobertEG wrote:
There is absoluttely no regulated drop off date of " OC accounts" from your CR. Some may drop them at ten years after closing, but in my opinion, they should not. Why? Because FCRA 605(b) says, that for higher transaction inquirie3s, the creditor is entitled to your history back 'til the days of Moses.

FCRA 605(a) only regulates restriction of what a CRA can include in any credit reprort that they issue. Any OC can report forever. It is up to the CRA to then determine, under the provisions of FCRA 605(a), what they can and cannot post in your credit report.

Posting of a CA is a major derog, and until it drops at 7 1/2 years from the DOFD on the OC account. Why would you expect continued delinquency on unpaid debt to give a favorable view of your credit risk? Might it not be just the opposite?

I wuold agree, as long as your score isn't affected by them at all after ten years...

I'm still getting dinged for all of my student loan TLs, even tho they've been paid off for 10 years now, because they have boosted my total # of TLs above 30. I have no idea when/if they'll drop off my report. The ding is small, but it's annoying.

Re: FICO Magic Numbers

blacklotus — Mon, 19 Apr 2010 23:10:06 GMT

AA of A!

Don't remove those old credit cards from your report. When my credit was very bad I was able to get a credit card with a $500 CL. I have long since paid this card off and threw it in my sock drawer and thought nothing else of it. Amazingly I believe this card has helped me get my score above 700+ because it increased my Average Age of Accounts but at the time I didn't realize it. I understand that there are ways to delete those but don't do it in the long run they will eventually boost your score.