Getting to 800 quickly...the truth!

[sarge12]

I see those that are new often posting questions about how to get to 800 fast...this is the reason for this post. First, you need to understand that the credit scores are a numeric representation of how responsibly you have handled various types of credit throughout history. There are three key phrases here...responsibly, various types, and history. Responsibly means always paying on time and never taking on more credit than is reasonable. Various types means you need some revolving credit and some installment loans. History by definition requires the elapse of time, and to get 800's...a good bit of it. Now as you are on your credit journey, many may try to convince you they know a magic trick to get you there in a hurry...these often involve correcting mistakes on your credit report for a fee, or maybe payment for deletion. You can get mistakes removed by just reading your report, and disputing inacuracies, and PFD can possibly be negotiated with the creditor, but this is dependant on the mercy of the issuer to remove this from your history. It is better that you avoid ever having anything bad on the report in the first place. History, there is no magic trick for, and that requires time. So, if you are new to credit, there are many who will try to sell you a magic trick to help your score, but in the end there are some tricks...but no real magic. You are totally in control of your future credit score. Handle your credit well, monitor it, have a good credit mix, use it, but do so resposibly, and your score will someday reach the 800's...no magic required.

[Anonymous]

In reviewing the meaning of this thread, I was reminded of the way financial institutions used to refer to the contents of the poster's thread:

The Three C's of Credit

Character:
refers to how a person has handled past debt obligations: From the credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined.
Capacity:
refers to how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could interfere in repayment.
Capital:
refers to current available assets of the borrower, such as real estate, savings or investment that could be used to repay debt if income should be unavailable.

[mkhan1093]

Thank you for giving it to us straight. I know I'm a fairly impatient person when it comes to things so just "waiting around" for stuff to age seems way too passive for me 

[Thomas_Thumb]

Speaking of C's - Diamonds are forever but you need to consider the four C's: Cut, clarity, color and carat. Cut and clarity take top billing - IMO but, I digress.

The main point here is get credit, use it responsibly and good things will happen. No need to micromanage on a daily basis to achieve a long term goal. The key components that are critical are: never pay late, spend within your means and pay balances in full - always. Personally, I never worried about # cards reporting or individual card utilization - just made sure total monthly charges (charges allowed to report naturally) could be PIF without fail before due date.

I 1st learned of my Fico 8 score on a Discover card statement in January 2014. At the time I had never heard of the MyFico forums and was ignorant of Fico scores let alone scoring factors. My score was reported as 850. It meant little to me at the time although I was pleased to have an excellent credit rating. All I did was manage a few fundamentals: Obtain new credit only when "needed", stay clean, keep aggregate utilization low enough to always PIF, take advantage of float time by allowing charges to report naturally on statements and have "sufficient" aggregate credit/charge card account CL to avoid high aggregate utilization when balances report.

A properly managed open installment loan can help boost Fico score. I did not know this prior to joining myFico in 2015. My operating plan was always get a mortgage to purchase a house but pay cash for cars. Undoubetedly having an open installment loan has benefited my score but, the loans were taken based on financial considerations.

A lot of helpful information and useful score optimization strategies are presented on MyFico. However, the forum tends to put undue emphasis on promoting rigid score optimization strategies. That's unfortunate as it tends to divert focus from core credit fundamentals. .

[sarge12]

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@Thomas_Thumb wrote:

Speaking of C's - Diamonds are forever but you need to consider the four C's: Cut, clarity, color and carat. Cut and clarity take top billing - IMO but, I digress.

The main point here is get credit, use it responsibly and good things will happen. No need to micromanage on a daily basis to achieve a long term goal. The key components that are critical are: never pay late, spend within your means and pay balances in full - always. Personally, I never worried about # cards reporting or individual card utilization - just made sure total monthly charges (charges allowed to report naturally) could be PIF without fail before due date.

I 1st learned of my Fico 8 score on a Discover card statement in January 2014. At the time I had never heard of the MyFico forums and was ignorant of Fico scores let alone scoring factors. My score was reported as 850. It meant little to me at the time although I was pleased to have an excellent credit rating. All I did was manage a few fundamentals: Obtain new credit only when "needed", stay clean, keep aggregate utilization low enough to always PIF, take advantage of float time by allowing charges to report naturally on statements and have "sufficient" aggregate credit/charge card account CL to avoid high aggregate utilization when balances report.

A properly managed open installment loan can help boost Fico score. I did not know this prior to joining myFico in 2015. My operating plan was always get a mortgage to purchase a house but pay cash for cars. Undoubetedly having an open installment loan has benefited my score but, the loans were taken based on financial considerations.

A lot of helpful information and useful score optimization strategies are presented on MyFico. However, the forum tends to put undue emphasis on promoting rigid score optimization strategies. That's unfortunate as it tends to divert focus from core credit fundamentals. .

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Well put Thomas_Thumb...I also do not worry about utilization, and PIF always...seems to be common among higher score. I also tend to make multiple payments in a month...I know it is not necessary...just hate letting the balances get too high, and it is easier for me to just pay early and often. I also try to stress...pay your bills, have a good mix, do not carry more debt than is easily paid ontime, and your score will increase. Sort of the KISS method. Hope to also obtain 850 ATB someday!

[Anonymous]

Good post! The only direction your score will move quickly is down.  Up will be a long slow ride but worth it when you get there.

[sarge12]

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@Anonymous wrote:

Good post! The only direction your score will move quickly is down.  Up will be a long slow ride but worth it when you get there.

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That is true unless you have wild swings in utilization to where you are at 50% one month, <9% the next, and then 70% the next, etc. That would be fairly easy to do if you have fairly few revolvers and fairly low limits. That may result in wild swings up and down.