topic Re: Fico Score of 850 in General Credit Topics

Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 10:00:08 GMT

Does anyone on this fourm have a score of 850? who here has the highest score and what is there secret to getting such a high score.

Would a score of 850 mean you have never messed up anywhere on your report ever? and is there some minimal amount of time associated with a score of 850? perhaps 5-10 years of active credit? I have never herd of anyone reaching such a level?

I will post more information on how to get a score of 850 as I do more research.

What exactly is someones starting credit? I herd someone today at work tell me we all start at 850 but that can't be true since that would be at 850 right when you started you would have access to the lowest apr and since you did no work and no credit management theres no way. so do we start from 300 than? and work out way up?

Good research links:

http://consumerist.com/2010/04/09/is-a-perfect-credit-score-of-850-even-possible/

https://www.mint.com/blog/goals/increase-your-credit-score/

"Vary your types of credit and limit unnecessary credit accounts. A healthy credit report will have a good mix of revolving accounts (credit card accounts) and installment loans." <--- Something I should renember.

Re: Fico Score of 850

Anonymous — Thu, 13 Feb 2014 10:09:33 GMT

Looking forward to the results of your research... I have never heard, known or even read of anyone with a 850 score. Not even "The Rich & Famous". Thats a interesting topic "Credit Lives of the Rich & Famous". lol...

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 10:34:13 GMT

The fallowing makes up our credit scores, based on your score couldn't you calculate where you have gone wrong and what's damaging your score?

35% – Payment History: How you pay your bills significantly affects your credit score. Paying on time and paying the required amount is imperative! The difference between paying a bill 60 days late versus 90 days late can also have an effect. So does the number of past-due accounts in your credit report versus the number of on-time accounts.

30% – Types of Credit Used: PICO likes to see a mix of different types of credit — including credit cards, installment loans (student loans fall into this category), mortgages, and consumer finance accounts.

15% – Amounts Owed: The proportion of used credit vs the available credit you have for each revolving account, as well as the same ratios across all revolving accounts.

10% – Length of credit History: The longer you’ve been using credit, the better for your credit score.

10% – New credit: Your brand-new Hello Kitty credit card will fall into this category, which includes the average age of your various credit lines, as well as how soon you opened a new line of credit. The credit inquiries made on your credit files will also affect your credit score. (An inquiry hits your report whenever you give permission for a third party to check your credit history in order to obtain credit or service, but not when you check your own credit or a third party does a so-called soft inquiry to pre-qualify you for “preapproved” credit offers).

breakdown gathered from "https://www.mint.com/blog/credit/how-to-improve-your-credit-score/"

Go head try it, take a look at these categories and see where you can improve, below is a break down for me! you would be surprised I learned a few things!

1. my score of 669 in an 7 month period: I know for a fact my payment history has been on time which is good.

2. my typed of credit are only credit cards and ive read I need to have a mixture to show I can handle installment loans as well as CC's, which means im off by half not so good...

3. the amounts I owe have stayed under 30 percent utilization for the majority of the accounts age, but after closer inspection I see I have even reach 40% Util at one point which isn't terrible but probably dings the score a bit.

4. My credit history length is short so I probably score the fairly low here, although I have read that we get put in brackets for where we should be based on our age and "where we are in life" so I think im doing ok but not great. should of opened this account 2 years ago!

5. This month I got accepted for a bestbuy card and still waiting to hear back from target. thats two attempts so my score should lower a bit, how much at this point im not sure. Will update you guys when I know more.

So it appears I need improvement in just about all categories!

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 10:53:23 GMT

Based on your credit needing a mixture of CC and installment I Wonder if I should get my own cell phone, im currently on my family's plan. I'm not sure if a 2 year contract is considered an "installment loan" its based 24 monthly installment payments. is it the same thing?

More good reading material on installment vs revolving credit

http://www.bankrate.com/brm/news/debt/debtguide2004/installment-revolving1.asp

http://ficoforums.myfico.com/t5/Mortgage-Loans/What-sort-of-installment-loan-will-help-me-best-to-get-a/td-p/361629

Re: Fico Score of 850

Anonymous — Thu, 13 Feb 2014 10:52:46 GMT

I had a score in the 800 range once. I can't remember what it was, but it was in the high 800 range. It did not last very long. I think only for a month, then my score settled to the mid 700 range.

I had a car repossessed and missed payments on over half a dozen credit cards and loans all on the same month back in June 2006. I literally had like 10 baddies all fall off my credit report around the same time, December 2012.

I never missed a payment again since June 2006. It was just a crazy month for me. So my score was in the high 600 range I think, and I skipped 700, and went straight to 800 when all the baddies fell of all at once.

It was also the one year mark of my mortgage and I paid off a lot of installment loans and car loans the two years prior.

I had horrible credit card utilization but managed to get approved for $16,500 from Penfed around the same time.

I think losing almost a dozen baddies all on the same time, and having otherwise perfect payment history, and a very thick, mixed credit profile, screwed up the credit score algorhythm.

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 10:58:55 GMT

I see that a lot of people can have overall a good credit history but may end up having one month of a fluke. what exactly is the cause of this? would this have been deterred if you had automatic payments? what kind of life crysis could distract me from paying bills just so I can be prepaired?

I should already have automatic payments set up as well as back ups to prevent this from every happening. but who knows?

Re: Fico Score of 850

Anonymous — Thu, 13 Feb 2014 11:06:32 GMT

My bad, it was in the low 800 range. The highest my score has ever been was 805 and then 815. It was like that for 2-3 months early 2013.

I got a $16,500 Penfed card in Feb 2013 and I initiated a roughly $14,000 balance transfer. I was dumb and impatient, and I somehow duplicated my $14,000 worth of balance transfers. So Penfed did the same balance transfers twice!

So before I even held my brand new Penfed card in my hand, I was like $12,000 over limit and it reported on all 3 credit bureaus. To this day, it says on my Penfed credit profile that the highest balance was $27,000 something. Even though my limit is $16,500.

It was at this time, my score dropped from 800 range and has never been back ever since.

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 11:08:51 GMT

"$27,000 something" is there a way to prevent something like that from happening? did the webpage double send your request? how does that happen?

Re: Fico Score of 850

Anonymous — Thu, 13 Feb 2014 11:17:22 GMT

When I applied for the Penfed CC originally, during the application process, it ask if you want to do a balance transfer. I selected yes, and entered the card numbers and amounts I want transferred.

I did not get an instant approval from Penfed, I had to speak to someone. So when I was speaking to a customer rep, that person asked me if I wanted to do a balance transfer. I mistakenly thought, that since I was being manually approved, that my previous entry was nullified.

So I asked the customer rep to initiate the same balance transfer... So it turns out, both went through and both posted.

Because the other credit card companies already "cashed the check" per say and processed the payment. Pennfed could not cancel the transactions.

I had to literally contact the other banks, have them issue me a check for the over limit amount, cash the check, and then transfer the money over to Penfed, all before the statement posted.

It was a hectic and frustrating time...

My score was dropping a lot and finally settle to 723 I think by the time I corrected everything.

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 11:28:55 GMT

This is great example of how the UX at Penfed CC is a disaster. How on earth could something so stupid happen in such a way. You would of figured that the previous request either didn't go through or like you stated nullified. This company has failed at providing you an exceptional user experience. Did you report the incident to proper channels to see if a control system can be put in place to prevent future mishaps? this is an outrage.

Re: Fico Score of 850

Anonymous — Thu, 13 Feb 2014 11:35:59 GMT

I didn't raise a stink over it. I was just so happy to be approved for a CC with a decent limit. My highest Visa prior was only $2,500 and I think my highest Mastercard was $1,500.

Just the fact that they approved me I turned the other cheek.

Re: Fico Score of 850

RED_Knives — Thu, 13 Feb 2014 11:39:17 GMT

at this point thats my concern to raise my CC limit! im only at 1250 for my highest card. with a combined total of 2750 on 3 cards. Pretty annoyed, I'm sure after 12 months it should be a lot easier I should be getting paid a lot more as well, from 18000 to 32000 a year.

Re: Fico Score of 850

takeshi74 — Thu, 13 Feb 2014 13:37:23 GMT

FYI there are prior threads that discuss this. IIRC, anything over 750 is a negligible gain as the best terms are generally given to those with 750 or better. The primary benefit of a 750+ score is having the added buffer of the additional points (i.e. you can apply and not worry about your score dropping into a less favorable bracket). I didn't see where you indicated your AAoA but it sounds like you have a long haul before worrying about getting an 850 score. It's worth keeping in mind as you manage your credit though.

@RED_Knives wrote:
Would a score of 850 mean you have never messed up anywhere on your report ever?

Not at all. Consider that closed accounts and derogs fall off reports over time.

@RED_Knives wrote:

What exactly is someones starting credit? I herd someone today at work tell me we all start at 850 but that can't be true since that would be at 850 right when you started you would have access to the lowest apr and since you did no work and no credit management theres no way

No idea what one starts off with. Without any credit hitsory there's no way to generate a score. Prior threads (again, don't overlook them as a resource) indicate that at least 6 months history is needed for a score. No one starts off at 850.

@RED_Knives wrote:
breakdown gathered from "https://www.mint.com/blog/credit/how-to-improve-your-credit-score/"

You can also find the information here on myFICO.com:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Also, don't overlook the Understanding FICO Scoring subforum.

@RED_Knives wrote:
3. the amounts I owe have stayed under 30 percent utilization for the majority of the accounts age, but after closer inspection I see I have even reach 40% Util at one point which isn't terrible but probably dings the score a bit.

Keep in mind that 30% is the recommended maximum. Ideal will be much lower -- generally 10% or less but it can vary from person to person and you'd have to test to find your ideal utilization.

@RED_Knives wrote:
My credit history length is short so I probably score the fairly low here, although I have read that we get put in brackets for where we should be based on our age and "where we are in life" so I think im doing ok but not great. should of opened this account 2 years ago!

This is why AmEx backdating is another common topic here. Get your MSD locked in as early as possible. I added 2 new AmEx cards last year. Since my MSD is in 1998 they both report as 15 year old tradelines.

@RED_Knives wrote:
Based on your credit needing a mixture of CC and installment I Wonder if I should get my own cell phone, im currently on my family's plan. I'm not sure if a 2 year contract is considered an "installment loan" its based 24 monthly installment payments. is it the same thing?

While carriers pull credit at sign up, wireless service is not reported unless there's a derog.

@Anonymous wrote:
I have never heard, known or even read of anyone with a 850 score. Not even "The Rich & Famous". Thats a interesting topic "Credit Lives of the Rich & Famous". lol...

Rich & good credit aren't mutually inclusive. There are certainly those with money that have poor credit and those that aren't rich and have good credit. While income can help one's credit they're two entirely different things.

@RED_Knives wrote:
This is great example of how the UX at Penfed CC is a disaster.

The UX worked as designed. acleynes shouldn't have assume (never rely on assumption) and should have verified with the CSR. And/or the CSR should have been able to determine that a BT was already pending.

Re: Fico Score of 850

Revelate — Thu, 13 Feb 2014 17:48:02 GMT

Have to be careful with old posts on the Internet: wireless carriers used to report tradelines but they don't anymore as takeshi correctly points out. Things do change over time. If you want an installment loan for the mix of credit function (which I personally recommend) get a secured one either a Credit Builder style loan (DCU) or dump some cash into a CD and take out a loan secured against it (USAA et al).

Re: Fico Score of 850

thom02099 — Thu, 13 Feb 2014 20:25:26 GMT

Regarding where one starts out...

No, it's not a situation where everyone gets 850 points and it's theirs to lose! I'm sure LOTS of us would like that to be the case! I've never heard/read of anyone checking their credit report for the very first time after establishing their credit, and getting an 850 score.

Many of us have kids that we've assisted in establishing credit, by added them on our accounts as AU/ACM, or by encouraging them to apply on their own. From my own experience with my kids, added to 3 different prime accounts (AMEX, Discover, CITI), after about 9 months, they both had their own scores. My daughter, the younger of the 2, had an initial score in the 710s; my son, in the upper 680s. Both established at the same time, so no explanation as to the differences. My daughter has since established credit in her own name, taking on a student loan and getting a Discover card on her own, and still has a score that ranges 720s-730s. Not bad for a 20 year! Son, however, is content to remain status quo.

The point here is that neither of them started at 850. Their scores were calculated based on the information that was reported by the card issuers to the CRA. That's what happens to all of us at some point in our credit journey. I can remember those days way back when in the low 500s, in the early days of my own journey. I think if some of the other "oldsters" on here who've had credit history for a long time (20+) will reflect back, we started at really low numbers and worked our way UP!

Re: Fico Score of 850

-Wade- — Fri, 14 Feb 2014 01:36:11 GMT

I am @ 817 on EQ and i do not plan on any apping any time soon. My 817 is my hightest ever. I can't wait to see what my score is this time next year. Only time will tell

Re: Fico Score of 850

Anonymous — Fri, 14 Feb 2014 03:11:26 GMT

A few years ago, I was working in a marina. A guy came in to buy a boat and he was the first person that the sales manager had ever seen with an 850. The sales manager had been there over 20 years...

Re: Fico Score of 850

Revelate — Fri, 14 Feb 2014 03:22:23 GMT

@Anonymous wrote:
A few years ago, I was working in a marina. A guy came in to buy a boat and he was the first person that the sales manager had ever seen with an 850. The sales manager had been there over 20 years...

A lot of the older scoring models you couldn't even hit a 850 FICO on the base/classic score. Pretty much everything up to '08 that was the case, with the exception of various industry options which have had wonky score ranges.

Re: Fico Score of 850

Anonymous — Fri, 14 Feb 2014 08:50:12 GMT

My FICO Score is 811. My prior highest score was 804. Debt reporting for me more that 1.5% utilization just knocks my scores down. Also, my highest score comes with a mortgage, installment loan, department store/gas card and one bank card reporting.

Re: Fico Score of 850

darkfrosty — Fri, 14 Feb 2014 04:09:11 GMT

I have had a fico score of around 820s .. but currently it has dropped back down in the 790s .. it is a monthly thing of going over and under 800.