FICO Magic Numbers

[Anonymous]

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?

[lkcrew426]

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

[Anonymous]

Thanks for your input!

[MarineVietVet]

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@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?

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[llecs]

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%.

[AndySoCal]

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.

[Anonymous]

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@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.

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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

[lkcrew426]

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@Anonymous wrote:

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@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.

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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

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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.

[Anonymous]

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.

[RobertEG]

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?