@SecretAzure wrote:I'm sad they didn't choose to answer my question.
Why isn't there a guaranteed, positive path into the FICO scoring system for those with no credit?
- Why do we rely on third parties (Capital One, Discover, Credit Unions, etc.) to be the ultimate deciding factor on whether one will start off on the right foot or the wrong?
It really boggles the mind that there isn't an obvious, guaranteed path into credit.
I agree. Luckily there are currently 3rd parties who are willing to extend credit to those with no history, but what happens if theoretically they stop? The only path into credit, then, would be for a 3rd party to co-sign or add them as a AU, and not everyone has that option. I don't.
Total Loan Balance: $43k / $65k
Total SL: $78k
Good info @Anonymous ! I'm glad there are more and more ways to get into the system. I've seen some of your posts in the past. It's neat that you were so entrenched into MyFico so early into your credit journey. A lot of people have learned from your profile and findings.
Thank you!
Must garden until 2/1/2022 to hit my goal AAOA. 
Interesting thing... I never knew about the blog area for the actual FICO decision makers, marketers and data scientists. There's quite a bit of info over there to sort through but it's definitely worth a look-see for the curious! It's kind of like a parallel world to myFICO.
https://community.fico.com/s/
I did find somewhat of an answer to one of my unanswered questions that I posted regarding the lesser known CRA's being tied into FICO. (As far as Lexis-Nexus, it definitely is!)
https://community.fico.com/s/blog-post/a5Q2E000000wvBAUAY/fico2342
@SecretAzure wrote:I'm sad they didn't choose to answer my question.
Why isn't there a guaranteed, positive path into the FICO scoring system for those with no credit?
- Why do we rely on third parties (Capital One, Discover, Credit Unions, etc.) to be the ultimate deciding factor on whether one will start off on the right foot or the wrong?
It really boggles the mind that there isn't an obvious, guaranteed path into credit.
Well, the Credit world is by definition a transactional relationship. Methods such as Experian Boost look at other transactions that are not directly classified as Credit, so there's that.
Many banks and CU do offer secured CC and secured term loans, and as long as someone doesn't have major negatives on their credit file, those secured accounts are a guaranteed path to credit.
Caveat is that if someone has a lot of negatives so even secured cards aren't available, then they need to go into rebuilding mode as their earlier path into credit went negative.
@jdbkiang wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:
@Anonymous wrote:
@Brian_Earl_Spilner wrote:It was interesting to learn that percentage of on time payments is indeed factored in despite conventional wisdom on here.
@Brian_Earl_SpilnerI'm not sure that was resolved in that context. Anything less than 100% penalizes. (Exceptions are new files that dont' have any established payment history.) Anything can be converted to a percentage and the more lates, the more penalty and the percentage drops drops.
It pretty much was. While they weren't talking about the higher percentage of on time payments on an account, they mention number of accounts that are paid as agreed. That would mean adding more on time accounts would have a positive outcome for someone that has missed a payment.
Respectfully I think they were referring to when you add your second and third revolving accounts, which adds points by reducing the too few bankcard penalty. Jmho.
Yeah, I'm not seeing where you get that.
"FICO Scores reward consumers who have a higher percentage of accounts with no delinquencies, more accounts currently paid as agreed, and those who have a longer credit history."
OK taking it piece by piece, those who have a higher percentage of accounts with no delinquencies will of course have a higher score because they will have less delinquencies, and they will be rewarded because they won't be as penalized by the delinquencies.
A profile with 3 accounts paid on time will have a higher score than a profile with 1 account paid on time.that's just my reading of it.
Don't mean to butt in here, but based on "consumers who have a higher percentage of accounts with no delinquencies, more accounts currently paid as agreed," I think the correct interpretation is that, all other things being equal, someone with 25 accounts with 1 delinquency would have a higher score than someone with 22 accounts and 1 delinquency.
This one I take as a vote for rebuilders to add accounts, make on time payments, and attempt to flood the algorithm with positive data. To prove this out, one rebuilder would have to stick with two or three accounts, while another similar profile rebuilder adds 10 accounts. I suspect the rebuilder who more aggressively adds accounts ( to a point ) and then allows them to age would see higher scores, not only just prior to the last late dropping off, but continued after the account goes to the clean scorecard.