FICO Scores

[DRIless]

WOW! I wish I understood all this credit score stuff, but mine jumped 65 points this month from moderately good to really, really, really good. Retired/self employed, no real changes that I know of, maybe should pull a credit report. Guess it's time to buy a timeshare at 20% interest, not!




How are FICO® Scores calculated?
FICO® Scores are calculated from many different pieces of credit data in your credit report. This data is grouped into five categories as outlined below. The percentages in the chart reflect how important each of the categories is in determining how FICO® Scores are calculated.
35% - Payment History
30% - Outstanding Debt
15% - Length of Credit History
10% - New Credit
10% - Credit Mix

What are FICO® Scores?
FICO® Scores are numbers that summarize your credit risk. Scores are based on a snapshot of your credit file at particular consumer reporting agency at a particular point in time, and help lenders evaluate your credit risk.

Why are you providing FICO® Scores?
Reviewing your FICO® Scores can help you to better understand your financial health.

How often will I receive my FICO® Score?
Your FICO® Score 9 is based on Equifax data, from updated credit score data from Equifax once a month. When you view your FICO® Score Online or through the Mobile app, you see the most recent FICO® Score received from Equifax.

Will accessing my FICO® Score impact my credit?
No. The FICO® Score we provide to you will not impact your credit.

What are Key Score Factors?
When a lender receives a FICO® Score, "key score factors" are also delivered, which explain the top factors from the information in the credit report that affected the score. The order in which FICO® Score factors are listed is important. The first indicates the area that most affected that particular FICO® Score and the second is the next significant area. Knowing these score factors can help you better understand your financial health over time. However, if you already have a high FICO® Score (usually in the mid-700s or higher), score factors are informative but, not as significant since they represent very marginal areas where your score was affected.

Why is my FICO® Score different than other scores I've seen?
There are many different credit scores available to consumers and lenders. In addition, FICO® Scores are based on credit file data from a particular consumer reporting agency, so differences in your credit files may create differences in your FICO® Scores. The score being made available through this program is FICO® Score 9. When reviewing a score, take note of the score date, consumer reporting agency credit file source, score type, and range for that particular score.

Why do FICO® Scores fluctuate/change?
There are many reasons why a score may change. FICO® Scores are calculated each time they are requested, taking into consideration the information that is in your credit file from a particular consumer reporting agency (CRA) at that time. So, as the information in your credit file at that CRA changes, FICO® Scores may also change. Review your key score factors, which explain what factors from your credit report most affected a score. Comparing key score factors from the two different time periods can help identify causes for a change in a FICO® Score. Keep in mind that certain events such as late payments or bankruptcy can lower FICO® Scores quickly.

How do I check my credit report?
Because your FICO® Score is based on the information in your credit report, it is important to make sure that the credit report information is accurate. You may get a free copy of your credit report once every 12 months. To request a copy of your credit report, please visit: http://www.annualcreditreport.com or you can request a free copy from each of the three major consumer reporting agencies including Equifax. Please note that your free credit report will not include your FICO® Score.

 

[Talent312]

DW's and my FICO scores are quite boring: Up + down 1 or 2 points each month.
Without a change in our credit posture, they must do that just to show something.
.

 

[Shankilicious]

Credit Score=debt score.....

 

[DaveNV]

Credit Score=debt score.....

They also show companies you do business with whether you’re a good risk, like car insurance, or the interest rate you’ll pay on a car loan, or if a landlord should rent to you. The rates you pay may be related to your score. Lower score = Higher rates.

Dave

 

[Shankilicious]

They also show companies you do business with whether you’re a good risk, like car insurance, or the interest rate you’ll pay on a car loan, or if a landlord should rent to you. The rates you pay may be related to your score. Lower score = Higher rates.

Dave

I'm well aware of that. My score is around 800 because I've got credit cards, a mortgage and a long and perfect credit history. But I have no debt besides the mortgage. My score went down when I paid off my last car and a personal loan a year ago. It's back up since then.
When I pay off my house and get rid of credit cards, my score will really go down.

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[1Kflyerguy]

My score seems to bounce around, not really to sure why sometimes. There was one month where it dropped something like 75 points, then right back up the next month.

I don't pay for any sort of service, but getting my score from the couple of credit cards that include a free score.

 

[OldGuy]

806 for a long time.

One time it when varied varied from that was for a reason that it should not have varied, when we took advantage of an 18-month interest-free cash advance, which we used to purchase a house, increasing our net worth far greater than the interest-free debt we took on, and which we paid off with the sale of our previous house, before interest kicked in.

Another time it varied a tad was when I used one of those online sources that provides offers from a number of lenders, the number of lenders checking us out causing our FICO score to drop, even though we did not follow through getting a loan/mortgage.

I had Credit Karma for awhile, but their score was always different from our real FICO score, they could not provide a good reason for that, so I dropped them.

 

[Gypsy65]

I'm well aware of that. My score is around 800 because I've got credit cards, a mortgage and a long and perfect credit history. But I have no debt besides the mortgage. My score went down when I paid off my last car and a personal loan a year ago. It's back up since then.
When I pay off my house and get rid of credit cards, my score will really go down.

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Your score will go up when debt is reduced but if you pay off a debt and close that account like a credit card or auto then you are eliminating the amount of credit offered which brings your debt ratio up

Say you have 4 cards or loans with a total of $100,000 available between all sources
You have $40,000 on the bubble so your debt is 40%
You pay off and close $30,000 but the remain cards have a total cap of say $20,000 and you have that original $10,000 in debt.
You now have 50% debt ratio which will drop your score

Whenever I have paid off a vehicle. My credit initially drops as it shows a closed account but after a month or so it shoots back up as it sees my overall debt drop

Not sure if this makes sense or answers any questions or if you were even asking one at all?? But this is how I’ve noticed it to work

There’s a free app. Credit Karma and you can watch your scores and debts right there. Also see if your credit gets pulled

 

[bbodb1]

While I agree with Gypsy65 on the notion that watching your credit report and scores is generally a good idea, allow me to point out that Credit Karma is a private company and should you choose to utilize their services you are sharing your private financial information with a for profit company. This is NOT to say you should avoid Credit Karma, but you should be very aware of what information they will have access to if you become a customer of Credit Karma. Caveat Emptor.

See https://www.investopedia.com/articl.../why-credit-karma-free-how-it-makes-money.asp

 

[WVBaker]

Have you ever noticed that your FICO score will differ from one credit card to another?

Your FICO score may differ from one lender to another. Make sure you check different places.

There are no two methods of scoring that will be identical. Understand that there are multiple FICO Score versions. Also, the FICO method of scoring will be periodically updated. Throw into the mix that certain methods will be used by credit card issuers and others may be used for car loans. Someone who has had a repossession or missed a payment will find his or her "FICO Auto Score" affected. Of course you have a different formula for mortgage lenders. Each one using different factors. You may have different scores, but they are all based on the information provided by the credit-reporting agencies.

It's always a good idea to check your reports from all the major reporting agencies.

 

[OldGuy]

Have you ever noticed that your FICO score will differ from one credit card to another?

no

 

[Talent312]

Have you ever noticed that your FICO score will differ from one credit card to another?

Credit Karma shows two different scores (based on Equifax & TransUnion).
Mine differs by 3 points. But AmEx, Chase & Mint all show the lower score.

.

 

[bbodb1]

Worth a read if you want to know more about FICO Scores: https://www.myfico.com/credit-education/credit-scores/fico-score-versions

 

[Sea Six]

 

[Talent312]

Congrats... That's like a perfect bowling score.
Got them fooled, huh.

 

[VacationForever]

Mine is regularly at 835 and we have no debt. The only activities is credit card spending each month and they are always paid off. So you don't need to have a loan or debt to get a high score.

 

[Shankilicious]

Mine is regularly at 835 and we have no debt. The only activities is credit card spending each month and they are always paid off. So you don't need to have a loan or debt to get a high score.

No mortgage, car payments, timeshare loans? Nothing but a long positive credit history and a couple credit cards keeping you that high?

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[bbodb1]

No mortgage, car payments, timeshare loans? Nothing but a long positive credit history and a couple credit cards keeping you that high?

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It stands to reason there were some loans in the past that were paid off in full. It would be very hard (but not impossible) to build a score that high without some past activity.

 

[Shankilicious]

It stands to reason there were some loans in the past that were paid off in full. It would be very hard (but not impossible) to build a score that high without some past activity.

Right. But if vacationforever has that much paid off, I'm surprised their score stayed that high. Id be glad to know if that's possible as my impression of how it works is the opposite. But I'm also prolly the youngest one in this discussion (31)

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[OldGuy]

Right. But if vacationforever has that much paid off, I'm surprised their score stayed that high. Id be glad to know if that's possible as my impression of how it works is the opposite. But I'm also prolly the youngest one in this discussion (31)

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Our 806 is almost the same. No current loans. Do $30,000-ish on CC every year, and pay off the balance every month. Most monthly bills are on auto-pay.

I guess once you have everything paid off, so you don't need credit, you get a good credit score.

Maybe old helps.

 

[WVBaker]

Right. But if vacationforever has that much paid off, I'm surprised their score stayed that high. Id be glad to know if that's possible as my impression of how it works is the opposite. But I'm also prolly the youngest one in this discussion (31)

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"Youth is the gift of nature, but age is a work of art."

Stanislaw Jerzy Lec

 

[VacationForever]

No mortgage, car payments, timeshare loans? Nothing but a long positive credit history and a couple credit cards keeping you that high?

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Yep. No mortgage, no car payments, no timeshare loan, nothing. I do have very high credit limit on most of my cc cards. We put alot on credit cards but always pay them all off before the due dates.

 

[pittle]

Those of us who are older and have had credit cards for a long time probably still have some credit cards with extremely high limits We basically have 5 credit cards but two of them have the high limits and lower % of use and interest rates and we have had them since 1995. We have a couple of bills that go on those each month and are paid off automatically. This keeps them active and available for any emergency. We use the others for day to day charges and pay them off each month. Our scores are similar to vacationforever's.

 

[SmithOp]

No mortgage, only credit cards paid off each month and a car loan at my credit union because the interest rate was so low (1.9%) it was better to leave the cash making simple interest.

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[bbodb1]

Right. But if vacationforever has that much paid off, I'm surprised their score stayed that high. Id be glad to know if that's possible as my impression of how it works is the opposite. But I'm also prolly the youngest one in this discussion (31)

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I can tell you that in my case, I have a lot of cc accounts that were paid off, still open with their credit lines available. The amount of credit I have access to but not used is a significant positive bump. Now that I read back a little, what Phyllis describes above is our case as well.

One thing that is weird though is something recently changed with our credit utilization - it dropped a good bit. I suppose that is attributable to how credit utilization is calculated changed OR perhaps some credit lines increases may have pushed us into a better level (as far as FICO is concerned). Again, this mirrors what Phyllis describes above.