How do I get over 800?

[Anonymous]

I have 9 cards

110k limit

under 1% utilization

9 years length of credit (7 years avg)

2 inquiries (was 1)

no missed payments

8 prior installment loans all paid off, including 2 auto loans

I'm always getting 775-780 score. Can anyone help?

[Anonymous]

Do you currently have any open installment loans?  If you don't you're probably losing 20-30 points in the Credit Mix section of FICO scoring.

[Anonymous]

---

@Anonymous wrote:

Do you currently have any open installment loans?  If you don't you're probably losing 20-30 points in the Credit Mix section of FICO scoring.

---

So I have to be constantly paying interest otherwise I'm losing out on 20-30 points?

[Anonymous]

No, you don't have to be paying interest.

First, let's establish what a FICO score is.  Your FICO score is a statistical prediction of your risk of incurring a serious derogatory within the next 24 months (a serious derogatory is defined as a 90-day late payment or worse).  In other words, it is mostly a forward-looking score intended to anticipate future performance; while most people mistakenly assume it looks backward.  Because of its forward-looking nature, you're rewarded for having open, active revolving and installment accounts.

When understood from that perspective you can understand why you would miss out on scoring points by not having an installment loan since an active loan is a significant input into the algorithm that calculates the score.  In the absence of that input, you miss out on the opportunity to gain points for having an optimal Credit Mix.

What several people do when they don't have an active installment loan is open a Share Secured Loan to boost their credit mix.  If you search these forums you'll find detailed descriptions about SSL and how they work but this recent comment is an excellent place to start:  How do shared <sic> secured loans work?

[Anonymous]

How would you get an installment loan without interest? Even the trick of the SSL has interest even though you're loaning from yourself. 0%APR auto loan is just interest added as principal from negotiation.

[Anonymous]

Which product or rate do you think you will qualifty for at 800 that you will not qualify for at 780? At the level you at, most people are going for 800 or 850 just to see if they can.

[AllZero]

How many of the 9 cards are reporting a balance?

What is the individual utilization % that is reporting a balance?

What is the age of your youngest account?

What is the source of your score? Are they FICO?

[Dervrak]

The general consensus is that there is really is no advantage to having a credit score over ~770, as the best rates companies offer top out at that level. You might get offered higher starting credit limits with 800 or higher and its certainly something to strive for if for no other reason that it gives you "cushion" for your credit score to drop from hard pulls and the like.  

Personally the only person I know with an 800+ credit score is my mother who has an 826. She has a 40+ credit history, no blemishes, mortgages and car loans paid off and carries little to no balances on her credit cards. 

[Anonymous]

---

@AllZero wrote:
How many of the 9 cards are reporting a balance?
6
What is the individual utilization % that is reporting a balance?
at most 4-5%, majority are small recurring bills and subscription
What is the age of your youngest account?
6y/o
What is the source of your score? Are they FICO?

They're from Credit Karma, Chase, Discover, Credit Union

---

[Jnbmom]

---

@Anonymous wrote:

---

@AllZero wrote:
How many of the 9 cards are reporting a balance?
6
What is the individual utilization % that is reporting a balance?
at most 4-5%, majority are small recurring bills and subscription
What is the age of your youngest account?
6y/o
What is the source of your score? Are they FICO?

They're from Credit Karma, Chase, Discover, Credit Union

---

---

If six accounts are reporting a balance, pay all of them to zero except one, just leave a little balance and you should see a little boost. A SSL is a great way to get the installment boost and yes there's interest but not much at all since most pay it down right away

And as mentioned 770+ gets about the same rates/approvals as 800 scores.