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Low FICO Score Despite Flawless Record?

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Anonymous
Not applicable

Low FICO Score Despite Flawless Record?

Hello everyone!

 

This is my first post on these awesome forums.  I've been reading and watching you all from the shadows for many years and tonight I decided to join in on the fun.  So "Low FICO Score" to me is relative; you may think my score isn't that bad or maybe it is, but I was hoping for something better without having to get a non-mortage loan just to increase my FICO score.  Let me explain...

 

I've been debt free for the past 4 years.  I had about $100K worth of debt 10 years ago including multiple student loans and two car loans.  I was never late on a payment and never had a bad mark on my file.  Also, it's not like I've never had a non-mortage loan because I've actually had a few... it was just awhile ago outside of the FICO Score 8 Experian scope.  Fast forward to today, and my FICO Score 8 based on Experian data is 795.  According to the Credit Scorecard, I've never had a missed payment in my entire life, always had low revolving credit usage, but what's hurting me is:

  • No loan activity.  Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that a person is able to manage a variety of credit types.

According to CK, my TransUnion VantageScore 3.0 is 806 and my Equifax VantageScore 3.0 is 810.  So when I recently found out my Experian FICO Score 8, I was shocked and disheartened that it was below 800.  I'm looking to buy a house within the next 5 years (I know this FICO score is fine, but I still want to improve it if possible), and if I did buy a new car, I'd like to pay for it in cash.  So it makes it hard to have loan activity when I'm the arch nemesis of debt.

 

Some other details about me.  I check all of my accounts twice a week and pay them off on the spot the moment I see a balance post.  Per the Experian Credit Scorecard data:

  • I have 20 Total Accounts with a Credit Mix of "Very Good".  It lists 9 installment loans and 11 revolving credit accounts.  What it doesn't tell you is it's 5 Open Accounts and 15 Closed Accounts that were paid off and closed.
  • 19 years Length of Credit considered "Exceptional".
  • Inquiries at 0 considered "Very good".
  • 1% Revolving Utilization considered "Exceptional".
  • 0 Missed Payments.

 

I just can't believe with all that said, it still gave me a 795 FICO SCORE?  So, do I really need to apply for a non-mortgage loan and pay it off immediately if I want to see my FICO SCORE improve??  Also, I'm looking for advice on the best way for me to increase my FICO score.  Some people on these forums collect credit cards, some enjoy the churning, some like to game the system, as for me... I enjoy increasing my FICO score towards 850 if possible.  (After all, this IS the myFICO forums, right?)  I'd love to hear any tips you can offer me, thank you!

Message 1 of 196
195 REPLIES 195
Jnbmom
Credit Mentor

Re: Low FICO Score Despite Flawless Record?

795 is a great score, not sure why you are upset?

 

If you pay off all your balances and all report zero, FICO is not fond of that.

 

I would pay all cards but one and leave a little balance to report, you should see a little bump. You could also get a SSL that way you have installment account added to the mix.

 

As far as a mortgage a 795 will probably get you the same rate as an 800 score.

 

You can search AZEO method and SSL on the forums

EXP 780 EQ 791TU 795
Message 2 of 196
Brian_Earl_Spilner
Credit Mentor

Re: Low FICO Score Despite Flawless Record?

The installment loan would have to be open and paid down to 8.9% to get the maximum scoring boost for credit mix. People tend to use the SSL technique to maximize the amount of time and minimize the cost.

    
Message 3 of 196
Anonymous
Not applicable

Re: Low FICO Score Despite Flawless Record?


@Jnbmom wrote:

795 is a great score, not sure why you are upset?

 

If you pay off all your balances and all report zero, FICO is not fond of that.

 

I would pay all cards but one and leave a little balance to report, you should see a little bump. You could also get a SSL that way you have installment account added to the mix.

 

As far as a mortgage a 795 will probably get you the same rate as an 800 score.

 

You can search AZEO method and SSL on the forums


 

Thanks to you, I just spent the last couple hours learning all I can about the AZEO (All Zero, Except One) method and SSL (Share Secure Loan).  Wow, I had no idea this forum had secret, hidden gems that are so valuable to me and my FICO Score!  Thank you so much for mentioning both!  It's awesome when you learn something new...

 

To answer your question, 795 is good, but who doesn't love 800+?  Why settle for less when I just learned all about SSL which could be that figurative "silver bullet" that I didn't even know existed until today.  800+ to me is more than just a number.  You know how some people from these forums are proud that they have 20+ credit cards and $500,000+ in available credit?  Well, each of us has something deep down inside that gives us joy and mine just happens to be that 800+ score.  Not because I need it, but because it makes me happy.  Sure the debt free lifestyle and having good relationships with my friends & family matters too, but I'm having fun challenging myself in this epic quest, call it a hobby if you will.  I tend to have simple goals in life and for some reason I like the idea of a 800+ FICO Score.  Maybe I'm just crazy chasing after things that don't matter.  It makes me smile though when I'm able to achieve something that I'm aiming for.

Message 4 of 196
Anonymous
Not applicable

Re: Low FICO Score Despite Flawless Record?


@Brian_Earl_Spilner wrote:

The installment loan would have to be open and paid down to 8.9% to get the maximum scoring boost for credit mix. People tend to use the SSL technique to maximize the amount of time and minimize the cost.


Thank you for that!  That explains why I was reading someone else paid their SSL down 92%.  I was curious why that percentage and I think you just explained to me why.  Smiley Happy

 

I have a nearby Credit Union that offers a "Credit Builder Loan".  After reading it over, it might just be that SSL I'm looking for.  I'll have to call them up and make sure it meets the specifications of what we deem a SSL should do.

Message 5 of 196
AllZero
Mega Contributor

Re: Low FICO Score Despite Flawless Record?

If you have not done so, I would recommend reading the below from CreditGuyInDixie
Adding an installment loan -- the Share Secure technique
The Quest for an SSL alternative to Alliant

Here are two institutions that have SSL which you can pay in advance to 8.9% utilization without shortening loan term:
NFCU - membership restrictions.
SSFCU - geofence.

Message 6 of 196
AllZero
Mega Contributor

Re: Low FICO Score Despite Flawless Record?

CreditKarma is great for monitoring your credit report. Not so much for scores.

 

$1 you can obtain your 3 bureau FICO 8 reports at Experian.com or creditchecktotal.com. Cancel in 7 day or less to avoid the re-occurring monthly charge.

Message 7 of 196
Anonymous
Not applicable

Re: Low FICO Score Despite Flawless Record?


@AllZero wrote:

CreditKarma is great for monitoring your credit report. Not so much for scores.

 

$1 you can obtain your 3 bureau FICO 8 reports at Experian.com or creditchecktotal.com. Cancel in 7 day or less to avoid the re-occurring monthly charge.


 

Thanks for the info!  Have you ever tried the $1 trial at Experian.com or creditchecktotal.com and then tried canceling?  Also, if so, is that a one time deal or do some people attempt that trial more than once?  I always have this sinking feeling that if I would go and try to cancel, they would make it super difficult or it doesn't cancel, then I would get charged their full monthly service fee.

 

Currently, I'm using the Discover Credit Scorecard site to get my free Experian FICO Score 8 on a monthly basis, no credit card required.

Message 8 of 196
AllZero
Mega Contributor

Re: Low FICO Score Despite Flawless Record?


@Anonymous wrote:

@AllZero wrote:

CreditKarma is great for monitoring your credit report. Not so much for scores.

 

$1 you can obtain your 3 bureau FICO 8 reports at Experian.com or creditchecktotal.com. Cancel in 7 day or less to avoid the re-occurring monthly charge.


 

Thanks for the info!  Have you ever tried the $1 trial at Experian.com or creditchecktotal.com and then tried canceling?  Also, if so, is that a one time deal or do some people attempt that trial more than once?  I always have this sinking feeling that if I would go and try to cancel, they would make it super difficult or it doesn't cancel, then I would get charged their full monthly service fee.

 

Currently, I'm using the Discover Credit Scorecard site to get my free Experian FICO Score 8 on a monthly basis, no credit card required.


Yes. I've used both. You can cancel online. It's very easy to cancel online. Wash, rinse, repeat.

Message 9 of 196
AllZero
Mega Contributor

Re: Low FICO Score Despite Flawless Record?

Message 10 of 196
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