What makes a good credit score?

[96Firebird]

I'll start this off by saying this is a semi-brag thread, but also curious as to why I have a decent credit score.

I got pre-approved for a mortgage recently, and they pulled my credit and said I have a score of 748 "excellent". I realize that isn't up to ATOT standards of 820+, but I'm happy to be in the higher end.

So how does it all work? I'm 26 years old, I don't have much credit history, one credit card that I've had for almsot 4 years. I pay it off every month. One private loan that I paid off in about 6 months 2 years ago, no current loans or leases besides student loans ($26k), which I have almost cut in half (from $45k) since I started repayment 3 and a half years ago. Other than that, nothing else should be on the report... I figured without much history, I would have a lower score. Is that not how it works?

 

[Svnla]

Ok, first of all, the 748 is from what? FICO? If it is FICO, it is only decent, not great. You need to be 760 or higher in FICO to consider great.

How to get a good credit score?

Follow these steps: (100% of your score is based on these 5 factors)

1.payment history -35%
2.amount owed -30%
3.length of credit -15%
4. new credit open-10%
5. types of credit -10%

Read this link and follow the suggestions = http://www.myfico.com/CreditEducation/ImproveYourScore.aspx

You are welcome. I should be the mod for ATOT Finance forum.

 

[Ferzerp]

For the FICO score, typically once a score is above 750 (or 760 if poster above is correct) or so, the actual score is irrelevant. You also need the following to be seen as very low risk.

You need varied credit types. Mortgage, Car loan, some credit cards, etc. For the credit cards, you need to have a sufficiently high credit limit, but only use a small percentage of it. The accounts also need to be old, and you don't need to try to open a lot of accounts all at once. Yes, these things influence the score itself, but you can also have an excellent score, and not have a long credit history and still be seen as a risk.

You also have to have an acceptable debt:income ratio. You might have sterling credit but based on your income, be on the brink of collapse, and thus be denied new credit.


Oh yeah, and the biggest thing. PAY YOUR DEBT ON TIME.


edit: for clarity

 

[T9D]

https://chaturbate.com/female-cams/

 

[SlitheryDee]

My last discover statement put my FICO at 762. That's up from the mid 500s about 8 years ago. I think a lot of the reason for your good credit score is probably more lack of negative entries on your report than a plethora of positive ones. I know exactly why mine was as low as it was, and it's taken almost a decade of good behavior to put it behind me. With very little credit history, it probably doesn't take a lot to tank your score either.

 

[gamefreakgcb]

Discover FICO puts me at 792. I have a shit ton of credit cards open right now and have opened/closed about 40+ credit cards in the last 5 years since I started. Only a Car loan, no other loans. I've had enough cards opened/closed for the sign-up bonuses and booked Biz class using points tickets for 6-7 people at different time for trips abroad.

 

[leotheliongrrr]

I had a hard time getting the loan to clear even though I had my credit pulled with a great score, but I had less than 3 active tradelines of credit.

I had a great score, but I didn't have enough tradelines open. I had one card I had used for 8 years, and no auto loans or student loans.

It seems like you have 2 tradelines of credit. The banks refused to give me a non conventional loan without PMI because I did not have 3+ tradelines of credit. I waited a year and a half after opening up a few more credit cards, and was approved no problem. I've heard that regardless of the state you reside in, the 3 tradelines thing is very important despite a great credit score.

Just a heads up. Ask your mortgage broker/bank about this before you find a home you like and then it gets pried away from your cold dead hands. Be prudent about this. Credit score can mean jack here. You might get a loan with PMI, but at your age, I don't recommend you go for it. You can't even deduct the PMI costs on your tax return.

I was 26, living in California (Bay Area), so standards could have been tighter than some other places. My credit score at the time was 770+.

I ended up getting a place last year in August, and refinanced this year no problem.

Edit:
First link on google
http://ficoforums.myfico.com/t5/Mortgage-Loans/3-Trade-Lines/td-p/573939
another one
http://blogcritics.org/why-you-should-keep-three-lines/

I was raised to not borrow too much if I could afford it. Because of this mentality I only had 1 credit card for purchases, and saved up to by my car, and was able to pay off my college tuition via working. I didn't realize it would screw up my chances of buying a home. It's kind of screwed up that in this country you have to borrow more credit to prove you are a responsible buyer. /Rant over.

Edit 2:

PMI, not PMA, sorry.

 

[Zodiark1593]

Two big rules...

Pay your bills on time
Don't Max out your credit lines. (Under 33% utilization is preferable)
(Optional) Pay balance in full every month. Keeps the ankle-biters at bay.

Aside from that, income typically determines the size of your loans and credit lines. And a deep credit history helps with larger loans.

 

[Newell Steamer]

IATOT standards of 820+

850 and ~ $100M in liquidity,.. otherwise, I consider you a MASSIVE credit risk.

 

[Thump553]

OP out of curiosity, do you also know your credit score from a Discover card statement? Reason I ask is I suspect Discover inflates the scores somewhat. I rarely use my Discover card but I remember a statement coming in a couple months after I refinanced and the Discover card bumped me up 30-40 points.

BTW 748 IS excellent. Congrats.

 

[reallyscrued]

Did someone say brag thread?

25 - 830.

 

[96Firebird]

OP out of curiosity, do you also know your credit score from a Discover card statement? Reason I ask is I suspect Discover inflates the scores somewhat. I rarely use my Discover card but I remember a statement coming in a couple months after I refinanced and the Discover card bumped me up 30-40 points.

BTW 748 IS excellent. Congrats.

Nah, the only credit card I have is a Citi card that I got when I graduated college. Late start, but better than never.

I got this score from my mortgage originator who ran my credit for pre-approval. He just said "Your score is excellent at 748", so I'm assuming that's FICO?

As for the 3 trade line thing, I do have utilities in my name that I have been paying for over 12 months that I could use if that becomes an issue. But I am going for a conventional 30-year, and it looks like the issue comes up with non-conventional like FHA.

 

[RossMAN]

High 700's for my wife and I.

I'd like to break 800 but doubt it will ever happen.

 

[Humpy]

Credit scores seem like a game that isn't very fun and I don't want to play.

 

[Red Squirrel]

I got a check once and it was 800 something. 816 or something but I forget. I don't even remember what system, I think it was Equifax. I think the scale went up to 850 if I recall.

I'm really not sure what I did right to get such a high score. The only thing I can think of is that I got a shark loan because I was completely maxed out, but I paid that off along other debts well in advance of due date. Maybe that did something positive.

Anybody know how to get a credit check and history for free in Canada? I'd be curious to check it again as this was several years back. I originally got the info from a free trial of some credit monitoring company that kept harassing me to sign up, so I said yes, and just canceled once I got the package, but it was nice info to have.

 

[CZroe]

I had 780 last month. I was hoping to break 800 by the end of the year or at least once I apply my tax refund next year. Only problem: It dropped to 699 this month. All I did was transfer some credit card balances to an old account.

 

[Exterous]

I had 780 last month. I was hoping to break 800 by the end of the year or at least once I apply my tax refund next year. Only problem: It dropped to 699 this month. All I did was transfer some credit card balances to an old account.

Uh....that is a significant drop and something you really should look into. Maybe a delinquent payment (rightly or wrongly) got posted or something.

 

[CZroe]

Uh....that is a significant drop and something you really should look into. Maybe a delinquent payment (rightly or wrongly) got posted or something.

I will be, but the 780 was already a boost from a loan that paid off some credit cards a couple months ago and the debt from the loan probably wasn't factored in yet. I have been over 700 for years though.

I get my FICO score from Discover and they say the usual "proportion of balances too high on revolving accounts" or something, which is a message I am used to seeing even through my 720+ years.

 

[highland145]

I get my FICO score from Discover and they say the usual "proportion of balances too high on revolving accounts" or something, which is a message I am used to seeing even through my 720+ years.

They give reasons even if they don't really have one. Mine is 815 and the reason was the same that you posted. I had 1 credit card with a $40 balance (iirc) and a $15K credit line....

 

[Exterous]

Mine is 815

Braggart

 

[CZroe]

Well, whatever it is, it doesn't show up on my FAKO report from CreditKarma. Everything still looks great there (over 750). I was worried that my roommate was late with the rent even though I paid him my half so I checked the minutia of the report for any late payments or accounts I wasn't aware of. I found some "WFF cards" account that was closed in 2008 without ever being used (can't recall what that might be) but nothing to explain what's going on with FICO.

 

[highland145]

Well, whatever it is, it doesn't show up on my FAKO report from CreditKarma. Everything still looks great there (over 750). I was worried that my roommate was late with the rent even though I paid him my half so I checked the minutia of the report for any late payments or accounts I wasn't aware of. I found some "WFF cards" account that was closed in 2008 without ever being used (can't recall what that might be) but nothing to explain what's going on with FICO.

Wells Fargo

Braggart

Jelly.

 

[nk215]

I never know my credit score. The free credit reports gave me everything but not the credit score. Did you guys pay for the report to get the score?

 

[highland145]

I never know my credit score. The free credit reports gave me everything but not the credit score. Did you guys pay for the report to get the score?

I got mine when I re did the heloc. You can pay for it. Some here use credit karma.

 

[esquared]

I never know my credit score. The free credit reports gave me everything but not the credit score. Did you guys pay for the report to get the score?

Those free annual credit reports will give you a score if you pay for it, but its not a FICO.

To get your FICO, you need to get it from myfico.com or have a Discover card, which gives you it for free monthly FICO from Transunion alone.

I used to get my FICO every year for the three reporting agencies and there was always discount to be found. Awhile back (5-10 years ago), Experian dropped out of the FICO to use their own credit score. And for awhile FICO would give only two scores from Transunion and Exquifax. It now looks like Experian is back at Myfico, as I see you can get all three again, for 59.95
http://www.myfico.com/Products/FICO-Score-3-Report-View/

Looks like they have a 20% promotion from the homepage of FICO

Use myFICO promo code
S1403STL20FST during checkout.


Experian still has an iteration of a FICO that they are using at places that aren't myfico.com, as they call it FICO® 8 Bankcard Score. It's max is 900 as opposed to the true FICO scores max of 850. I also get this "FICO 8" score every month.

From their website.
https://www.firstnational.com/site/personal/credit-card/benefits/fico-score.fhtml

If someone wants to read further into FICO, here are links to some more info from FirstNational about FICO
FICO FAQs
https://www.firstnational.com/Marke...t-library/assets/site/documents/fico_faqs.pdf

FICO Consumer education
https://www.firstnational.com/Marke...ts/site/documents/fico_consumer_education.pdf