What's the highest credit score?

[conjur]

Originally posted by: RossMAN
Thanks for reminding me about my pathetic 634 or whatever it is now

I'd be thrilled with that right now! :Q

 

[Arkitech]

Originally posted by: Alistar7
it will bump it but not that much, those were probably fairly close to being paid off the last time you checked, so it's not like you greatly reduced your income to debt ratio, or % of possible credit in use, if you have all those paid off though you score is irrelevant, you will be able to qualify for anything you desire realistically...


Anyone looking to improve their bad credit I would recommend pulling your report from each company separately and then lauching investigations on EVERYTHING. They give the companies 30 days to respond with their evidence and then make a decision, alot of companies cant move the paper fast enough, don't reply in time and they get dropped off...

My wife's car had a little more than a years payments, my truck was in 5th month of a 4 year loan. Same thing with the home equity loan I only had that for a few months with another 2 years before it would be paid off. Does paying off loans early make a big difference in credit scoring?

Interesting info however, can you refer me to an article on that? I just recently got into real estate investing so having a good credit score would be an asset in my business.

 

[Akebona]

I did Equifax and my score was around 720 or 730, I forget which. I have a perfect credit history, never any late payments on anything, credit cards, school loans, or car payments. They said that paying off a house for a number of years will help you get a better credit rating, but considering that I'm only 26 I think my credit rating is decent......... i think.

 

[Queasy]

Originally posted by: conjur

Originally posted by: RossMAN
Thanks for reminding me about my pathetic 634 or whatever it is now

I'd be thrilled with that right now! :Q

Hehe...I'm selling my home as a For Sale By Owner. We had a family come look at it last night and they are obviously immigrants with no clue as to how to buy a house (they came without their real estate agent which caused problems but is another story). They called back later that night and asked if we could work with them and I said ok. They then told me what their credit score was! It was pretty poor and I had to explain to them the entire loan application process and to go to a bank or mortgage lender to get pre-approved for a loan.

I about slapped my forehead when they told me their score. That is something I don't need to hear.

 

[GroundedSailor]

Just checked and got 772 - according to Vic post it's excellent.

Yay!

 

[Alistar7]

the fact that it was paid off early wont have much effect, they fact that the account is paid in full, meaning you satisfied the debt and are no longer taking from your income to cover the expense will help you in the real estate game though. You don't want to have too many credit accounts of just one type, ie ALL credit cards, you never want to carry more than a 50% balance on any card. You don't want to have a ton of free and clear unused credit either, sounds strange but the reasoning is you might come to RELY on that credit in the future. Check any of the big 3's websites, they all have this information in full along with tips to improve your score.

 

[Queasy]

Originally posted by: Arkitech

Originally posted by: Alistar7
it will bump it but not that much, those were probably fairly close to being paid off the last time you checked, so it's not like you greatly reduced your income to debt ratio, or % of possible credit in use, if you have all those paid off though you score is irrelevant, you will be able to qualify for anything you desire realistically...


Anyone looking to improve their bad credit I would recommend pulling your report from each company separately and then lauching investigations on EVERYTHING. They give the companies 30 days to respond with their evidence and then make a decision, alot of companies cant move the paper fast enough, don't reply in time and they get dropped off...

My wife's car had a little more than a years payments, my truck was in 5th month of a 4 year loan. Same thing with the home equity loan I only had that for a few months with another 2 years before it would be paid off. Does paying off loans early make a big difference in credit scoring?

Interesting info however, can you refer me to an article on that? I just recently got into real estate investing so having a good credit score would be an asset in my business.

Paying off loans early will not make a difference. Just making your payments in a timely manner and not having an over-abundance of debt will help your credit score.

 

[optoman]

I am around 720-730 range but my wife is around the 780 range. :Q

Stupid me and all the credit cards in college. If I would of stayed away I would also be around 780. How many points does paying off your car loan generally give you? Just curious because I finished paying off the car about three months ago.

 

[Akebona]

Originally posted by: GroundedSailor
Just checked and got 772 - according to Vic post it's excellent.

Yay!

where did you get it checked?

 

[Alistar7]

Originally posted by: Akebona
I did Equifax and my score was around 720 or 730, I forget which. I have a perfect credit history, never any late payments on anything, credit cards, school loans, or car payments. They said that paying off a house for a number of years will help you get a better credit rating, but considering that I'm only 26 I think my credit rating is decent......... i think.

probably wont get much higher, only thing that can really help you is TIME, but you are in great shape when you do buy a house or anything else, with that score you will qualify for the best rates more than likely, amazing difference 1% point can make over 30 years on a loan....

 

[GroundedSailor]

Originally posted by: Akebona

Originally posted by: GroundedSailor
Just checked and got 772 - according to Vic post it's excellent.

Yay!

where did you get it checked?

http://www.eloan.com/home
(not linking it to avoid referrers)

Look under their telephone number at the top right. You have to set up an account first if you don't already have one.

 

[dquan97]

I'm only 23 and have between 740 and 770. I have no missed payments...just 5 yrs of credit history. Checked at myfico.com

 

[Akebona]

Originally posted by: dquan97
I'm only 23 and have between 740 and 770. I have no missed payments...just 5 yrs of credit history. Checked at myfico.com

I dunno, looking at these numbers, its all relative to the place you get them at I think. Equifax actually checks it against all 3 major credit bureaus (sp?) I've had credit history for 9 years now, and I was reading that after 6 months of good ontime payments, it could be raised about 10 points. Anyhow, its though to compare numbers when some scores are on a 900 scale and others are on an 850 scale.

 

[weezergirl]

Originally posted by: dquan97
I'm only 23 and have between 740 and 770. I have no missed payments...just 5 yrs of credit history. Checked at myfico.com

i have 740 something and i'm 23. i've missed a few payments tho

 

[Vic]

Originally posted by: Alistar7

Originally posted by: Akebona
I did Equifax and my score was around 720 or 730, I forget which. I have a perfect credit history, never any late payments on anything, credit cards, school loans, or car payments. They said that paying off a house for a number of years will help you get a better credit rating, but considering that I'm only 26 I think my credit rating is decent......... i think.

probably wont get much higher, only thing that can really help you is TIME, but you are in great shape when you do buy a house or anything else, with that score you will qualify for the best rates more than likely, amazing difference 1% point can make over 30 years on a loan....

With that type of credit score, he could easily buy a house right now and depending on income, assets, debt ratio, and possibly down payment, get the best rate right now. Edit: and as rates are extremely likely to be up by the end of the year, I do mean RIGHT NOW.

Mini-rant here: I run across this all the time in my business, so I think I'll throw this out here right now. Once a person qualifies for an FNMA/FHLMC "A" paper mortgage loan, there is no better rate. There's no "improve rate (or fee) by 0.25% for scores over XXX" or anything like that. Yes, an exceptional credit score may make the approval easier (i.e. larger loan, less down or equity, less documentation required, etc.) but there is no better rate. And for the record, as long as everything else is in line (and the loan amount is $322,700 or less in the 48 states), virtually everyone with a 660 score and above is an almost automatic approval for an FNMA/FHLMC "A" paper mortgage loan.
Once again, having an 800+ credit score, $10 million in the bank, a 5% back-end debt ratio, or a huge jumbo loan does not automatically get you better rate and/or terms. The real world of loan officers and mortgage financing is NOTHING like what you see on those lendingtree.com commericals. We want your business, we really do, but if you demand better than what is currently available on the market, not even the best credit and qualifications in the world are going to get that for you, and if you're a real pain-in-the-ass about it, a good loan officer is unlikely to waste time trying to placate you. Just FYI.

 

[Alistar7]

and for those of you that cant get the best rates, BUY POINTS, 1,000 today is better than 10,000 down the line...

 

[dquan97]

Originally posted by: Akebona

Originally posted by: dquan97
I'm only 23 and have between 740 and 770. I have no missed payments...just 5 yrs of credit history. Checked at myfico.com

I dunno, looking at these numbers, its all relative to the place you get them at I think. Equifax actually checks it against all 3 major credit bureaus (sp?) I've had credit history for 9 years now, and I was reading that after 6 months of good ontime payments, it could be raised about 10 points. Anyhow, its though to compare numbers when some scores are on a 900 scale and others are on an 850 scale.

Shouldn't that website have the most accurate info, since they're the ones who devised the formula?

 

[alm99]

I hate these threads they make me depressed know how low my credit score is and how there is a long road ahead of me of rebuilding credit.

 

[GroundedSailor]

Originally posted by: Alistar7
and for those of you that cant get the best rates, BUY POINTS, 1,000 today is better than 10,000 down the line...

Care to explain that a little more?

Thanks

 

[MichaelD]

Originally posted by: Vic

Originally posted by: morkinva
900?

Correct.
900 is the highest score possible (although I have never seen above 850).
Possible score range is between 300 and 900. Average is probably around 650. Above 800 is extremely exceptional and rare. Above 720 is AAA credit, and would represent more or less perfect credit. 680-720 is AA, with minor blemishes like high balance ratios, new accounts, inquiries, and/or VERY OLD late payments. 620-680 is A, possibly with isolated minor late payments, past and paid collections, finance company accounts, very high balance ratios (i.e. credit cards maxed, etc.), or possible very old past and paid major derog but with re-established credit. 550-620 is B, with frequent late payments (possibly some accounts currently late), unpaid collections, charge-offs, and possible major but past and paid derog like bankruptcy, foreclosure, repossession, etc. 500-550 is C, with a regular history of serious late payments (2 or more months behind), possible current late payments, and possibly have a major derog in progress at the time of credit pull. Below 500, most financing is virtually impossible under any circumstances. A not-so-nice nickname for scores below 500 is "prison credit," 'nuff said.

I really like how you broke down the different numerical categories into their "definitions." Thanks!

I have one question/beef/problem...not directed at you, though...you don't make the rules.

I believe I fall into the 620-680 category, but it sucks that they lump all those things in the same category.
I.E.

620-680 is A, possibly with isolated minor late payments, past and paid collections, finance company accounts, very high balance ratios (i.e. credit cards maxed, etc.),

I have a very high debt/income ratio b/c I owe a LOT in CCs. BUT, I have not had a single late payment in 9 years. Not one. I don't feel it's fair to lump me into the same category as someone who makes late payments. The only thing that should matter is payment history! I make good money at my SECOND job, in the form of tips. That's how I supplement my income and am able to live well despite a high debt/income ratio...lenders don't seem to care about that though. :|

 

[Budmantom]

Nice post thanks Vic.

 

[Alistar7]

a point (% rate) is usually about a grand per point, so pay a grand now and get a loan for say 5.9% instead of 6.9%...... go check a mortage calculator and see the difference in monthly payments based on a one point interest difference, then multiply that by the number of payments....

 

[Zebo]

Mines 833 and I was really pissed and have started bombarding the agencies with complaints. They Said I was 30 days late on a bill. Not possible. I pay the day they arrive. .

 

[GroundedSailor]

Originally posted by: Alistar7
a point (% rate) is usually about a grand per point, so pay a grand now and get a loan for say 5.9% instead of 6.9%...... go check a mortage calculator and see the difference in monthly payments based on a one point interest difference, then multiply that by the number of payments....

Thanks

 

[Vic]

Originally posted by: GroundedSailor

Originally posted by: Alistar7
and for those of you that cant get the best rates, BUY POINTS, 1,000 today is better than 10,000 down the line...

Care to explain that a little more?

Thanks

Mortgage rates are tiered. While I said that having the absolute best qualifications won't get a better rate, there is no "one" rate either. I know it sounds confusing, but it really isn't.
In the industry, the set of rates for a single particular program/qualification/term is called the "matrix," and it looks like one. Generally, it's 2 columns. On the left are the rates, on the right are the costs (or "premiums"). Higher rates have premiums, i.e. the lender/investor pays the broker/lender for providing the loan. These are the type of rates that people who get "no point/no fee" loans get (there is NO free loan, the cost is in the rate). Lower rates have "discounts." This is where the borrower "buys" or "pays" points, a "point" being one percent of the total loan amount, in order to "buy down" the rate.
btw, I though I might add that every year, legislation is introduced to Congress by the "anti-predatory lending" groups to do away with premiums. If that ever occurs, the no point/no fee loan is history.

edit:

Originally posted by: Alistar7
a point (% rate) is usually about a grand per point, so pay a grand now and get a loan for say 5.9% instead of 6.9%...... go check a mortage calculator and see the difference in monthly payments based on a one point interest difference, then multiply that by the number of payments....

No where near.
A point is one percentage point of the total loan amount. So for a $100,000 loan, a point may be $1,000 dollars, but for a $200,000 it would be $2,000 dollars. This is known as a point "of fee." It is very different from a point "of rate."
Generally, buying down one point of fee will get only about 0.25% better point of rate.

MichaelD, rate sheets and experience is how I was able to break those down. The 620-680 range is the most common and diverse, which is why I put that or in bold print. While you may have never had a late payment (thumbs up! ), carrying a large amount of debt for a long period time represents that you are already at the limit of your debt load. Adding yet another account to that debt load theoretically could be the breaking point, hence the lower score.
Sorry, man, just do your best to pay down what you can. It only gets better.