Re: WHY IS MY FICO SCORE SO LOW?

CH-7-Mission-Accomplished · ‎10-03-2015

@Anonymous wrote:
They are Capital One and Chase. It just sucks that once I paid off both cars I don't get credit for it on FICO. Is there anything that can be done for FICO not to give lenders this message it's not accurate at all.

You are giving this message more credence than its worth. FICO always gives the top three reasons you arent scoring higher, and when it can't find something really bad to say, it just goes down the list. People with scores of 800 will get the same message you are if they don't have an installment loan. It does not mean you have bad credit. FICO is just telling you how you can raise your score.

Chill. It's not what you think.

jamie123 · ‎10-03-2015

@Anonymous wrote:
They are Capital One and Chase. It just sucks that once I paid off both cars I don't get credit for it on FICO. Is there anything that can be done for FICO not to give lenders this message it's not accurate at all.

I know this is going to sound backwards but it is really how FICO scores auto and installment loans:

FICO likes you to have an open installment loan on your reports and gives you points for having one. Once you pay off the loan FICO takes away most of those points. Really.

Like the other poster said, don't worry about the messages, they are just there to educate you. The lenders that you had the loans with are first rate so you don't have issues there.

You do need to get about 5 credit cards though. Apply for 2 cards a year until you have five. That is the best way to build good credit history and high scores. Keep these credit cards open for life and never close them.

Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20

Anonymous · ‎10-04-2015

I am going to ask the obvious that seems to have been missed.

Where are you getting your score?

Anonymous · ‎10-04-2015

@Anonymous wrote:
I am going to ask the obvious that seems to have been missed.

Where are you getting your score?

I've asked as well. OP doesn't seem to have gotten all three, and it is unclear what the scores are and what exactly is on the reports.

Anonymous · ‎10-04-2015

OP, 85% on time payments is what's killing your score. Payment history is 35% of your FICO score. Bringing your utilization below 10% will help also, but making required payments on time is critical. See if you can ask the lenders nicely to remove late payments. Some do, others think if they do, world's financial system will collapse.