7 steps to a 720 credit score

[Zebo]

4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile

Correct, also, DONT EVEN THINK ABOUT CALLING THEM, let the sleeping dragon stay asleep
---------------------------

Good luck with that one. I would think any mortgage one applies for the title co would require whatever the balance is plus whatever fees the creditor wanted to be paid/escroed so a lien is'nt emminet on the property you just bought?

 

[JasGamer]

Who keeps track of credit reports? Is it a Government run thing?

 

[Spooner]

Originally posted by: Smolek

Originally posted by: thegimp03
Dumb question #1: How do you find out your credit score?

You need to pull your credit report. You can do so at various places, however, the one i'd recommend is Myfico.com and select the Fico Deluxe kit for $38.88 (or $31.xx if you look for the 20% off myfico coupon).

Why would you do this when there are a bunch of free credit report agencies out there?

 

[Steve]

I'm surprised nobody's pulled out the old 1)....7)Profit! joke yet.

 

[Yossarian]

Originally posted by: Spooner

Originally posted by: Smolek

Originally posted by: thegimp03
Dumb question #1: How do you find out your credit score?

You need to pull your credit report. You can do so at various places, however, the one i'd recommend is Myfico.com and select the Fico Deluxe kit for $38.88 (or $31.xx if you look for the 20% off myfico coupon).

Why would you do this when there are a bunch of free credit report agencies out there?

this isn't 1998

 

[catnap1972]

Originally posted by: spidey07

Originally posted by: Viper GTS
The reality is that 720 isn't all that good.

I'm sitting a little over 700 right now (707), & according to Yahoo credit manager 707 puts me higher than 43% of the US.

That's not even the upper half.

15% of the US population is below 600

35% of the US population is below 670

50% of the US population is below 710

70% of the US population is below 755

90% of the US population is below 790

From here.

My credit has some major room for improvement (namely reduce my debt), but I'm still over 700.

Viper GTS

720 mean A+ credit, any higher doesn't get you anything.

Matter of fact, I read an article recently that stated one would likely be better off with a score of mid 700s (or thereabouts) and not something in the 800 (or higher) range as ANYTHING showing up that could be construed as negative would cause that 800 to drop like a rock in a hurry while it would have a lesser effect on a lower (but decent) secore.

I'll see if I can find the article...there were some things mentioned that one wouldn't expect.

 

[BigJ]

Originally posted by: cougarls88

Originally posted by: spidey07

Originally posted by: Viper GTS
The reality is that 720 isn't all that good.

I'm sitting a little over 700 right now (707), & according to Yahoo credit manager 707 puts me higher than 43% of the US.

That's not even the upper half.

15% of the US population is below 600

35% of the US population is below 670

50% of the US population is below 710

70% of the US population is below 755

90% of the US population is below 790

From here.

My credit has some major room for improvement (namely reduce my debt), but I'm still over 700.

Viper GTS

720 mean A+ credit, any higher doesn't get you anything.

Matter of fact, I read an article recently that stated one would likely be better off with a score of mid 700s (or thereabouts) and not something in the 800 (or higher) range as ANYTHING showing up that could be construed as negative would cause that 800 to drop like a rock in a hurry while it would have a lesser effect on a lower (but decent) secore.

I'll see if I can find the article...there were some things mentioned that one wouldn't expect.

Wouldnt it dropping like a rock be more relative to how much credit history you actually have?

 

[StageLeft]

Mrsskoorb, with a brand new SSN in nov/02, applied for her first bit of credit in the middle of 2003 (or thereabouts, may have been a touch later). Two months ago when she checked her credit it was 739. When I got my SSN in jul/01 with a new credit card to follow in nov/01, I checked my credit in jun/02 and it was already over 700. The advice here may be worthwhile, but if all you have is a single credit card, keep no meaningful balance (we keep miniscule ones - I have a feeling that our lender [mbna] may not send an update to the credit agency each month unless there is a balance, but I'm not sure), and never, ever, ever make a late payment, and don't have a report full of stupid ass inquiries for credit you shouldn't have in the first place, you'll have no credit problems. Literally in less than a year I went from having zero credit (couldn't get a cellphone, and couldn't even get crapital one to give me a secure credit card) to having enough to get anything I cared to get (first big item was a car in nov/02, a year after opening my account. No problems at all, with a house that followed 8 months later).

Remember, though, that all three agencies will give you slightly different scores, and 725, for example, may be what you get with equifax and experian may only have a 710 for you.

The thing about credit is that generally those who have a good one don't really need it. They have a good one because they are probably good with money. Those who are bad with money, and love to borrow money, also are likely to have a bad credit rating (although obviously you need some activity to it, if you're a big credit card whore your credit probably isn't great). My credit could drop to 550 tomorrow and I wouldn't really care, because I don't need to borrow money. It's a catch 22. Stop thinking like a person who needs to borrow money; stop trying to borrow it, and you'll find that your credit gets good enough that you really can - but by then you probably don't really need to

 

[IEC]

Originally posted by: Yossarian

Originally posted by: Tomato
3. Carry small balance on my credit card from month to month. Give the banks some money to keep them happy

doesn't help your credit, and costs you money.

The interest would be KILLER.

 

[alent1234]

Originally posted by: JasGamer
Who keeps track of credit reports? Is it a Government run thing?

there are 3 major companies

Equifax
Experian
Trans Union

There is also a fourth who's name I cannot remember at the moment, but by law or goverment regulation record of all mortgage payments go there and they screen mailing lists for lenders.

I forgot who owns each of the companies. There is also another company that created the FICO score that is always touted. They hire a bunch of math phd's to calculate the score and monitor people's credit usage patterns.

The way it works is each lender reports it's customer records to the 3 credit companies who compile the reports. Then when you apply for credit the lender checks one or more of the reports.

 

[StageLeft]

Did anybody hear about, in Dec 04, that all agencies would have to release a free report a year, or something like that? In the past it's been like that for some states, but I heard something (I think) about it being mandatory for all people with records with these agencies. I hate having to pay these dinks all that money, so I've not even been checking mine recently. As long as MBNA keeps raising my limit I figure nobody has bought a car on my credit.

Ah, equifax mentions the "FACT act" on their front page. equifax

 

[Vic]

Originally posted by: JasGamer
Who keeps track of credit reports? Is it a Government run thing?

The 3 credit bureaus are private corporations. The first was TRW (now Experian), which was a large government contractor and auto parts manufacturer/supplier (Carter carburetors). The other 2 are Equifax and Transunion.
Their business model is simple, and the system is actually voluntary. They encourage credit providers to report to them for free the ongoing payment histories of all their customers. The bureaus then compile this information into massive databases. Then, when lenders wish to check the credit history of an applicant, they pay the bureau(s) a small fee in order to get a complete report (about $12 for all 3 bureaus merged into a single report right now, which is usually obtained through a 3rd-party credit provider).
About 30 years ago, a company called Fair Isaac & Co (FICO) came up with the idea of analyzing the reports into a mathematical model in order to create a scoring system that would make it easier for lenders to determine the applicant's likelihood of going bankrupt in the future. The idea really didn't catch on completely until about 15 years ago, but today it is the credit score we're all talking about, and every lender uses them.

 

[alent1234]

if anyone is interested pay a visit to CreditNet and Credit Boards. They have great info on how to play the system to get a high score.

 

[Squisher]

Originally posted by: Skoorb
Did anybody hear about, in Dec 04, that all agencies would have to release a free report a year, or something like that? In the past it's been like that for some states, but I heard something (I think) about it being mandatory for all people with records with these agencies. I hate having to pay these dinks all that money, so I've not even been checking mine recently. As long as MBNA keeps raising my limit I figure nobody has bought a car on my credit.

Ah, equifax mentions the "FACT act" on their front page. equifax

Neat, but no good to me until March 1, 2005 (Michigan)

 

[TuxDave]

I checked 3-4 months ago and have a FICO score of roughly 812. I own 2 credit cards (the oldest one being 5-6 years old) and one retail card. I do have a fatass student loan though... :-(

 

[Mill]

Originally posted by: Vic

Originally posted by: Renob

The reality is that 720 isn't all that good.

My understanding it that a 720 score will get you the same loan rates as a 780??

That is more or less correct. Most lenders use a middle score of 720 (middle of the 3 merged bureaus) as the bottom score for their premier programs. So a 720 will usually get you the same rates as a 780. Other factors do apply though.

Yeah, sometimes even with a lower score they can do a manual review and can place less importance on the score.

 

[Pacfanweb]

Originally posted by: spidey07
I'll add #6.

Learn that money in should be greater than money out, not the other way around.

That's always good advice, but it has no bearing on your credit score. The credit reporting agencies have no idea how much you make, only how much you owe.

 

[Smolek]

Originally posted by: tangent1138
what's a CLI?

credit line increase

 

[StageLeft]

Originally posted by: Pacfanweb

Originally posted by: spidey07
I'll add #6.

Learn that money in should be greater than money out, not the other way around.

That's always good advice, but it has no bearing on your credit score. The credit reporting agencies have no idea how much you make, only how much you owe.

It alludes to what I say though - if you don't really need credit, your finances will likely be such that yours is good.

 

[Smolek]

Originally posted by: Zebo
4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile

Correct, also, DONT EVEN THINK ABOUT CALLING THEM, let the sleeping dragon stay asleep
---------------------------

Good luck with that one. I would think any mortgage one applies for the title co would require whatever the balance is plus whatever fees the creditor wanted to be paid/escroed so a lien is'nt emminet on the property you just bought?

It all depends on how bad it is. However, most simple collections do not result in liens or judgments. if you're not going for a house, just let them sit there and if you are, wait for your MORTGAGE company to bring it up as they can get things done a lot quicker then YOU can.

 

[Smolek]

Originally posted by: Spooner

Originally posted by: Smolek

Originally posted by: thegimp03
Dumb question #1: How do you find out your credit score?

You need to pull your credit report. You can do so at various places, however, the one i'd recommend is Myfico.com and select the Fico Deluxe kit for $38.88 (or $31.xx if you look for the 20% off myfico coupon).

Why would you do this when there are a bunch of free credit report agencies out there?

the free ones only get your report, to get your score, you have to pay for it.

 

[Smolek]

n/m

 

[Smolek]

Whether you need it or not, it's always good to have a few extra credit cards on hand just incase. Even if you don't need it, make it a "toy" card and stick it in your desk or sock drawer, using it only once every other month just to generate more credit history. It doesnt do any damage and helps you in the long run.

Also, if you apply for financing and are told, you have too much credit and need to close some lines, tell them so long and go somewhere else because there is no such thing as too much credit.

 

[bolido2000]

I just got my free credit report with Experian. The report said that my Employer is Boeing (never worked for them) and under my personal information there are 4 different names (only 1 is correct and the same from my SS card). Now the funny thing is that the Transunion report shows my name as one of the incorrect names in the Experian report. What are the implications of submitting a dispute? Especially disputing my name (instead of an "a" there should be an "h")

 

[Smolek]

Originally posted by: bolido2000
I just got my free credit report with Experian. The report said that my Employer is Boeing (never worked for them) and under my personal information there are 4 different names (only 1 is correct and the same from my SS card). Now the funny thing is that the Transunion report shows my name as one of the incorrect names in the Experian report. What are the implications of submitting a dispute? Especially disputing my name (instead of an "a" there should be an "h")

Job has no implication on credit (don't let them list you as unemployed though), but the name thing you should get that taken care of asap to prevent any future problems.