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What score is "enough"?

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pinkandgrey
Senior Contributor

Re: What score is "enough"?

Honestly, there is no magic number. There are people with 850 scores that still get denied for things. Way more factors come into play than just that one number. That being said, being in the high 700s to 800s will always be a boon lol 

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Message 11 of 27
ridgebackpilot
Established Contributor

Re: What score is "enough"?

I agree with two important points made here:

 

  1. Scores in the mid-700s are high enough to qualify for the most attractive credit offerings available, including the best credit cards, 0% financing, etc. Anything more is icing on the cake!
  2. In making their decisions, most lenders look well beyond credit scoring to other factors such as income, DTI, home ownership (stability), your banking relationship with them, etc.

Credit scores are like academic testing scores: Universities, medical schools, and law schools look far beyond SAT, GRE, MCAT, and LSAT scores when evaluating candidates for admission. A perfect test score but a boring résumé is no guarantee of admission to your first choice of schools!

 

Message 12 of 27
Anonymous
Not applicable

Re: What score is "enough"?


@Thomas_Thumb wrote:

There is no magic number but, I get bummed when my EQ mortgage score dips below 800 Smiley Sad.


Asked FNBO for a credit limit increase on my card with a score in the 800s and they said "NO". Now if that doesn't just make you wonder? As others have posted the high scores do not guarantee approval. Smiley Sad

Message 13 of 27
ridgebackpilot
Established Contributor

Re: What score is "enough"?


@Anonymous wrote:

Asked FNBO for a credit limit increase on my card with a score in the 800s and they said "NO". Now if that doesn't just make you wonder? As others have posted the high scores do not guarantee approval. Smiley Sad

Great example. FNBO is paranoid about inquiries; credit score is nearly irrelevant.

 

I think of my score as a ticket for admission. Unless a lender (like FNBO) is hung up on other things, your score gets you in the door. But lenders take your entire file into account when making decisions on extending significant credit.

 

 

Message 14 of 27
Anonymous
Not applicable

Re: What score is "enough"?


@Anonymous wrote:


Asked FNBO for a credit limit increase on my card with a score in the 800s and they said "NO". Now if that doesn't just make you wonder? As others have posted the high scores do not guarantee approval. Smiley Sad


Credit scores IMO aren't in the top 3 or maybe not even the top 5 in the list of factors considered by a lender for a CLI.

Message 15 of 27
NRB525
Super Contributor

Re: What score is "enough"?

There will be a threshold, in any given bank for whatever score model they use, above which no applicant will get a better rate on that loan product. This is because of the way FICO scores are designed.

A FICO score measures risk of default given the persons current debt structure and payment habits. That is not an application for credit, which is why optimizing score without a planned app is so much navel gazing. Maximizing score requires no new borrowing, lots of on time payment history, and low debt amounts.

Once you approach a bank about an application for credit, whether a CC, LOC or Mortgage, that new debt balance will cause your score to go down, because you have now taken on a new risk factor, a new risk of default. The bank doesn’t care if you have 850 vs 800 (picking a number) because that new loan is going to take away (lower) that 850 score.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 16 of 27
Thomas_Thumb
Senior Contributor

Re: What score is "enough"?

It is possible to open a new account (specifically a CC or a LOC) without score dropping below 850. 

 

In certain situations opening a new account (SSL if no open installment loans) or (CC if no revolvers in file) may boost a Fico 8 score by 30 points. Key point is to report a low B/L ratio for the new SSL or low utilization for the new revolving account.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 17 of 27
Anonymous
Not applicable

Re: What score is "enough"?

At my local credit union, 740 is enough for the best rate on an auto loan. I found this out while applying for a credit card in person when they told me my FICO 8 score was 728, or 'just shy of a Tier 1 rate'. Some people I work with also told me the same number is good enough at their credit union as well.

 

So, I'd say a 'good enough' number is whatever the lender you are looking at doing business with tells you, plus some extra room to account for any possible negative score changes from a new HP and new account.

Message 18 of 27
NRB525
Super Contributor

Re: What score is "enough"?


@Thomas_Thumb wrote:

It is possible to open a new account (specifically a CC or a LOC) without score dropping below 850. 

 

In certain situations opening a new account (SSL if no open installment loans) or (CC if no revolvers in file) may boost a Fico 8 score by 30 points. Key point is to report a low B/L ratio for the new SSL or low utilization for the new revolving account.


Yes, that is true, but not really borrowing anything where the rate you pay matters.  

 

Taking out a new mortgage gage usually sits at 100% utilization for quite a while. That’s where interest rate matters, not with my pretend SSL at $500. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 19 of 27
EW800
Valued Contributor

Re: What score is "enough"?


@Thomas_Thumb wrote:

There is no magic number but, I get bummed when my EQ mortgage score dips below 800 Smiley Sad.


That is a personal goal of mine as well -- keep all mortage scores north of 800.  Smiley Happy

I currently have two of them in that range, with hopefuly the third (EQ) there in a coule of weeks.  

 

 

 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
April 2024: EX8: 839; EQ8: 845; TU8: 842 -- Middle Mortgage Score: 822
In My Wallet: Discover $73.7K; Cap1 Venture $51.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $24.5K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $22K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $300K+
My UTIL: Less than 1% - Only allow about $20 a month to report, on one account. .
Message 20 of 27
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