BK is a Killer

[smallfry]

Just for giggles I added a friend to a couple of my credit cards last month. There is no revolving credit other than those cards on Experian or Transunion. I wasn't able to pull EQ. No public records just a dozen medical collections ranging from 2-6 years old. AU is a real help I see but the cards only show a bit over a year history.

Experian 670


TU 659


No BK or other public records. Amazing scores I thought.

[Anonymous]

It is the tendency towards the mean and being in the 0-2 scoring bucket. Someone with a year of clean revolving history in that bucket is average and will obtain an average score.

It seems the following scores are possible with clean revolving history, low utility, and no baddies:

680+ - 1 year

720+ - 2 years

After that, credit mix and other factors seem to be needed to boost a newer credit profile up to 760 quickly

[smallfry]

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@Anonymous wrote:

It is the tendency towards the mean and being in the 0-2 scoring bucket. Someone with a year of clean revolving history in that bucket is average and will obtain an average score.

It seems the following scores are possible with clean revolving history, low utility, and no baddies:

680+ - 1 year

720+ - 2 years

After that, credit mix and other factors seem to be needed to boost a newer credit profile up to 760 quickly

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12 medical collections is a tad better than a BK isn't it? I wonder if she could get a credit card with all those collections? I see a lot of people with lower scores than that it seems. Any reco's?

[Anonymous]

Its probably the fact that they are somewhat aged. The scores I listed above weren't for accounts with baddies, but it is interesting your friend is within 40 points or so of what a maxed out score would be with collections on her report.

[smallfry]

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@Anonymous wrote:

Its probably the fact that they are somewhat aged. The scores I listed above weren't for accounts with baddies, but it is interesting your friend is within 40 points or so of what a maxed out score would be with collections on her report.

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Tell me about it. I about fell out of my chair. 670 EX? I am busting my gut making sure I let the right number of accounts report pay on time early matter of fact and I pull mine today and 717 EX. Too funny. FICO has no predictive value for lenders IMHO.

[Anonymous]

It has predictive value if you are not going to do an in depth review of someone's financial situation, but if you are I think it is not that valuable. That is why FICO scores are somewhat disregarded in manual reviews by mortgage lenders.

I think they are more valuable to credit card companies than to auto or mortgage brokers (where income, job history, debt to income ratios, rental history are all looked into).