A long climb?

[Anonymous]

Reserves = how much money you have in savings accounts, 401k's, etc. that you could tap in an emergency.

[Lucid08]

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@Anonymous wrote:

Reserves = how much money you have in savings accounts, 401k's, etc. that you could tap in an emergency.

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So yo're saying that a score of 760 is possible for someone in the 'new' bucket within 2 years? It confused me when you mentioned 'reserves' because I associate reserves with what most lending institutions take into consideration when applying for a home loan, which I'm not planning on doing anytime soon.

[RobertEG]

Chris, FICO is a risk analysis of debt repayment, and not a financial analysis.  Income is not even a factor, nor are savings or any debt not reported to the CRAs.    FICO historical stats show that the first type of credit that one is at risk in not timely paying is revolving credit, and thus they score the holding and use of revolving credit much higher than installment credit.  Substantial FICO scores almost always require a showing of proper use of revolving credit.

[Anonymous]

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@ChrisGA43 wrote:

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@Anonymous wrote:

Reserves = how much money you have in savings accounts, 401k's, etc. that you could tap in an emergency.

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So yo're saying that a score of 760 is possible for someone in the 'new' bucket within 2 years? It confused me when you mentioned 'reserves' because I associate reserves with what most lending institutions take into consideration when applying for a home loan, which I'm not planning on doing anytime soon.

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No I do not believe you can hit 760 in 2 years. I believe 4-5 years is about the earliest. Robert is right. I was referring to reserves needed for loans. There is no such thing as reserves or income considerations with FICO scores. I was merely saying that FICO scores aren't the only factor involved in major loans. They play a much larger role in obtaining credit cards in my opinion.

[Lucid08]

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@Anonymous wrote:

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@ChrisGA43 wrote:

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@Anonymous wrote:

Reserves = how much money you have in savings accounts, 401k's, etc. that you could tap in an emergency.

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So yo're saying that a score of 760 is possible for someone in the 'new' bucket within 2 years? It confused me when you mentioned 'reserves' because I associate reserves with what most lending institutions take into consideration when applying for a home loan, which I'm not planning on doing anytime soon.

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No I do not believe you can hit 760 in 2 years. I believe 4-5 years is about the earliest. Robert is right. I was referring to reserves needed for loans. There is no such thing as reserves or income considerations with FICO scores. I was merely saying that FICO scores aren't the only factor involved in major loans. They play a much larger role in obtaining credit cards in my opinion.

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Got ya.

It just threw me for a loop when you mentioned reserves and whatnot in comparison to my OP in this thread.

And I agree about the scores playing a larger part when obtaining CC's. Starting with a mix of installment lines seems to be the key in that regard. And the addition of the auto loan seems to have bumped my score moreso than the other 3 installment combined, especially considering that they are all 3 CFL's. It will be interesting to see what happens to my score once the new Orchard card starts reporting.