FICO. Score questions.

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Dottie57
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FICO. Score questions.

Post by Dottie57 » Sun Nov 17, 2019 10:45 am

Yesterday I pulled my credit score from Experian. My score isn’t as good as hoped for and I want to know why.
Score is good 728.

Following are the 5 elements of the score

Payment history. - very good
Amt of debt - very good
Length of history - exceptional
Amt of new credit - good
Credit mix - very good

The only category in which I have “good” is the Amount of new credit. I did just get a costco credit card. I have 2 other cards and in general never have > 10% of credit limit used.

I did have some late credi card payments 3 years ago.

What can I do to better my score. Experian says I need more cc and then offers new CC on their site.

P.S. I don’t have debt out side of CC which I pay off each month. I hate CC i terest.

*****. UPDATE. *****

Thanks for replying! I feel better
Last edited by Dottie57 on Sun Nov 17, 2019 11:59 am, edited 2 times in total.

mhalley
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Re: FICO. Score questions.

Post by mhalley » Sun Nov 17, 2019 10:53 am

You can have an excellent score with only 2 credit cards. The late pays are some of the culprit. The number of lates and the amount both factor in. The new cc probably dropped it some, but that effect should be temporary. Once that newness wears off, it should go back up. I have seen posts that a new cc dropped scores from 50 to 100 points. If you continue the on time payments and low utilization you should be back to excellent (>760) in a year or 2.
https://www.creditkarma.com/credit-card ... it-report/
Last edited by mhalley on Sun Nov 17, 2019 11:13 am, edited 5 times in total.

sd323232
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Re: FICO. Score questions.

Post by sd323232 » Sun Nov 17, 2019 11:00 am

728 is great score! it is really hard to raise credit score when you are that high, the best thing you can do is let the time pass, three years since your late payments may not be long time, and it goes into calculation of your score. you will def hit 800 if you do nothing but just wait, and never be late on payments again.

bob60014
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Re: FICO. Score questions.

Post by bob60014 » Sun Nov 17, 2019 11:04 am

"Experian says I need more cc and then offers new CC on their site...." I'm always suspect of things like this.

You're close enough and really dont need to do much. If trying to get into excellent range, try increasing, without using, the credit limit on some of cards which may help some. Of course, paying down any outstanding debt will definitely help.

runner3081
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Re: FICO. Score questions.

Post by runner3081 » Sun Nov 17, 2019 11:38 am

Dottie57 wrote:
Sun Nov 17, 2019 10:45 am
Yesterday I pulled my credit score from Experian. My score isn’t as good as hoped for and I want to know why.
Score is good 728.

I did have some late credi card payments 3 years ago.
I think 728 is phenomenal for having late payments!

delamer
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Re: FICO. Score questions.

Post by delamer » Sun Nov 17, 2019 11:43 am

Does the score increase for “amount of new credit” the older your credit is?

If so, then you should probably just wait it out.

Your score was good enough to get you the Costco card, after all.

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Phineas J. Whoopee
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Re: FICO. Score questions.

Post by Phineas J. Whoopee » Sun Nov 17, 2019 11:52 am

One's FICO score is not a contest. Making your loan payments on time over a period of many years likely will raise it, but it isn't like getting a B- in high school civics rather than an A+.
PJW

Topic Author
Dottie57
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Re: FICO. Score questions.

Post by Dottie57 » Sun Nov 17, 2019 12:05 pm

I was thinking about a small mortgage to lessen my need to liberate $ from tax deferred. I know where I want to live, but circumstances won’t let me buy for a while.

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dm200
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Re: FICO. Score questions.

Post by dm200 » Sun Nov 17, 2019 2:19 pm

Dottie57 wrote:
Sun Nov 17, 2019 10:45 am
Yesterday I pulled my credit score from Experian. My score isn’t as good as hoped for and I want to know why.
Score is good 728.
Following are the 5 elements of the score
Payment history. - very good
Amt of debt - very good
Length of history - exceptional
Amt of new credit - good
Credit mix - very good
The only category in which I have “good” is the Amount of new credit. I did just get a costco credit card. I have 2 other cards and in general never have > 10% of credit limit used.
I did have some late credi card payments 3 years ago.
What can I do to better my score. Experian says I need more cc and then offers new CC on their site.
P.S. I don’t have debt out side of CC which I pay off each month. I hate CC i terest.
*****. UPDATE. *****
Thanks for replying! I feel better
First, a score of 728 is very good.

My opinion is that just keep up what you are doing and the score will increase over time. Keep the outstanding balances on credit cards very low. I doubt that you need more credit cards. Perhaps - after a time, if there is a good new credit card to get - then do so -- BUT I would wait for a while to see your credit score move up a bit.

I might also suggest signing up for free credit scores from several places. I use credit karma (2 scores), creditscorecard, credit sesame and the Discover score with my monthly Discover statement.

MikeG62
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Re: FICO. Score questions.

Post by MikeG62 » Mon Nov 18, 2019 7:39 am

Dottie57 wrote:
Sun Nov 17, 2019 10:45 am
... I don’t have debt out side of CC which I pay off each month. I hate CC interest.
I think the lack of installment debt (mortgage, auto loan, auto lease, etc...) is a contributing factor in your case. If you don't need those things there may not be much you can do, aside from allowing more time to pass since you were late on some CC payments.

Here is my personal experience.

When working and had a mortgage, my FICO score was consistently in the 840+/- ballpark. After I paid off my mortgage (~6 years ago), my FICO score began to slowly decline over time. A few years later, my score had fallen to 800+/-. No debt other than CC's (of which I have around a dozen). My charing capacity is around $300K (across all those cards) and my outstanding balance is never more than a tiny fraction of that. I do have a decent amount of monthly activity across these cards. Always pay in full on statement due date. Never missed a payment.

Switched from buying cars for cash to leasing in mid 2017. Leased first car in 2017 (for me) and one for my wife (in my name) in 2018. Checked my score recently at a number of different financial institutions, and my score is now in the 840-845 range. So it seems they really want to see installment debt and how you service that debt.
Real Knowledge Comes Only From Experience

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djpeteski
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Re: FICO. Score questions.

Post by djpeteski » Mon Nov 18, 2019 8:17 am

This view is often met with violent opposition, but there is no difference in a 728 and an 830 credit score.

You already qualify for the best rates in home loans. If you don't need a home loan then what does this matter? Better to concentrate your mental energy on other things.

Your credit score does not indicate the health of your personal finances.

Topic Author
Dottie57
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Re: FICO. Score questions.

Post by Dottie57 » Mon Nov 18, 2019 9:11 am

djpeteski wrote:
Mon Nov 18, 2019 8:17 am
This view is often met with violent opposition, but there is no difference in a 728 and an 830 credit score.

You already qualify for the best rates in home loans. If you don't need a home loan then what does this matter? Better to concentrate your mental energy on other things.

Your credit score does not indicate the health of your personal finances.
Thank you very much. I do have the money to buy a condo if I wish.

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dm200
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Re: FICO. Score questions.

Post by dm200 » Mon Nov 18, 2019 9:38 am

djpeteski wrote:
Mon Nov 18, 2019 8:17 am
This view is often met with violent opposition, but there is no difference in a 728 and an 830 credit score.
You already qualify for the best rates in home loans. If you don't need a home loan then what does this matter? Better to concentrate your mental energy on other things.
Your credit score does not indicate the health of your personal finances.
I would say "very little difference". Some loan pricing (interest rate) is a bit lower for an 830 score.

MichCPA
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Re: FICO. Score questions.

Post by MichCPA » Mon Nov 18, 2019 9:50 am

dm200 wrote:
Mon Nov 18, 2019 9:38 am
djpeteski wrote:
Mon Nov 18, 2019 8:17 am
This view is often met with violent opposition, but there is no difference in a 728 and an 830 credit score.
You already qualify for the best rates in home loans. If you don't need a home loan then what does this matter? Better to concentrate your mental energy on other things.
Your credit score does not indicate the health of your personal finances.
I would say "very little difference". Some loan pricing (interest rate) is a bit lower for an 830 score.
And all of that comes between 728 and 760.

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dm200
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Re: FICO. Score questions.

Post by dm200 » Mon Nov 18, 2019 10:05 am

MichCPA wrote:
Mon Nov 18, 2019 9:50 am
dm200 wrote:
Mon Nov 18, 2019 9:38 am
djpeteski wrote:
Mon Nov 18, 2019 8:17 am
This view is often met with violent opposition, but there is no difference in a 728 and an 830 credit score.
You already qualify for the best rates in home loans. If you don't need a home loan then what does this matter? Better to concentrate your mental energy on other things.
Your credit score does not indicate the health of your personal finances.
I would say "very little difference". Some loan pricing (interest rate) is a bit lower for an 830 score.
And all of that comes between 728 and 760.
True..

rich126
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Re: FICO. Score questions.

Post by rich126 » Mon Nov 18, 2019 10:37 am

I've never been one to obsess over credit scores, largely because I've never been declined by a bank or told by a lender than things don't look good. I have a ton of cards compared to many here. Honestly I don't know the number but somewhere around a dozen due to the benefits they provide and signup bonuses. I rarely miss payments but at times life gets busy and I have to admit to being late usually once a year on a card and sometimes they will waive the fees, other times I just chew myself out.

I have recently been getting free access to one of the scores via a credit card and mine has varied from 820 to 870. So scores can vary quite a bit. I'm guessing mine varied due to a few factors:

1. Largely varying use of credit. While I pay it off before late fees kick in, due to moving, there were some large items on my cards when the score was likely pulled.

2. Canceling/adding cards

3. Mortgage (1 of 2) getting paid off.

As others have said, once your score gets to a certain level (not sure where) it isn't that important. Now if a lender says something about it being not so good, I'd start worrying about it. I remember a decade ago I was sitting in a car dealership and they guy was saying with my credit I should be looking at a BMW. I didn't say anything but was thinking "And if I was the type to buy BMWs and the like, my credit wouldn't be so good and I wouldn't have the freedoms I do have".

Keep an eye on it but don't obsess about it.

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