Credit Scores
- Thread starter RonJ
- Start date
Register to hide this ad
There are a bunch of outfits that give "your credit score" Some of these companies are more used than others.
Ron - Wikipedia lists five top companies that use different ranges.
Of those companies, the high scores varied from 830 to 999
kwselke
Member
FICO (Fair Isaac) credit scores run from 300 - 850. The higher the better. Lenders may use other credit scoring agencies with different scales, or create their own scoring scale. FICO is what most people think of when they hear the term credit score, but it is not the only one out there.
Your credit score can range anywhere within the numbers. It all depends on your credit history, how well you've made payments in the past, if you have a credit history at all, how much of a history, backruptsy, repos, ect.
I thought 300 was the lowest they used with 850 the top number but I could be wrong too. There's a couple different ways they figure all the numbers in to get the 'score'.
FICO is the most common used method and I can't remember what it stands for now. Lenders will often refer to your credit score as your FICO number.
The different credit bureaus (Equifax is the one that comes to mind quickly) may use different score rating systems but they all are about the same,,different names for them of course.
Boiled down, the higher the number,,the better the risk you are for a lender to give you a loan/credit.
They love to see 800+.
I think by law you are entitled to one free credit report /per year from one of the 3 or 4 major credit bureaus.
They can be eye opening sometimes showing all past, closed accounts as well as current ones. Some you didn't even know your name was one that an acquantance opened in your name. Those can really hurt your credit.
Getting things cleaned up & the score back up takes time even after those bad accounts are taken care of.
You are in effect gaining the trust back of the lenders that ask for a current credit score and that takes time.
I thought 300 was the lowest they used with 850 the top number but I could be wrong too. There's a couple different ways they figure all the numbers in to get the 'score'.
FICO is the most common used method and I can't remember what it stands for now. Lenders will often refer to your credit score as your FICO number.
The different credit bureaus (Equifax is the one that comes to mind quickly) may use different score rating systems but they all are about the same,,different names for them of course.
Boiled down, the higher the number,,the better the risk you are for a lender to give you a loan/credit.
They love to see 800+.
I think by law you are entitled to one free credit report /per year from one of the 3 or 4 major credit bureaus.
They can be eye opening sometimes showing all past, closed accounts as well as current ones. Some you didn't even know your name was one that an acquantance opened in your name. Those can really hurt your credit.
Getting things cleaned up & the score back up takes time even after those bad accounts are taken care of.
You are in effect gaining the trust back of the lenders that ask for a current credit score and that takes time.
finesse_r
Member
I don't need on stinkin' credit score and don't want no stinkin' credit score. I think easy credit is one of the top three evils in this world. Other than buying a home which is the only time I can think of that credit can actually be useful, credit is a sure way of paying more than something is worth, and being lulled into buying over priced shinny things that are not needed.
If you are worrying about your credit score you are using way too much credit.
If you are worrying about your credit score you are using way too much credit.
Last edited:
Actually I owe no money except for my home and car. My credit score is 871, which is why I was curious about the scores being in excess of 850.
Texas Star
US Veteran
Don't they have to delete any info over seven years old, other than bankruptcies? I think those last for 14 years? I think judgements run for 10 years and can be renewed.
I agree that credit is overused, but most people need it to buy a car as well as a house, and many apartments won't lease to anyone without good credit.
I agree that credit is overused, but most people need it to buy a car as well as a house, and many apartments won't lease to anyone without good credit.
Rastoff
US Veteran
No, nothing is ever deleted. Typically, banks and other lending institutions only look back 7 years, but the stuff stays on your record forever.
Most, if not all major employers (including mine!) pull credit scores on perspective and current employees. Auto insurance companies base their rate in part on credit scores. Even some private clubs and fraternal organizations look at credit before putting new members up to a vote. Fair Isaac Company-FICO used to be about the only score, now their are a myriad of scoring companies and some are less fair than others!
creditkarma can give you most of those scores for free. no limit on how many times you can check your score and they don't ask for a cc.
kwselke
Member
You are thinking about credit reports not credit scores. The reports along with other data are used to create the scores. The reports do have derogatory information removed from them after a specified period but other information lives on and may be used in scoring. For instance my credit report shows I had an American Express Card from 1979 through 1996 and it was canceled at my request and I owed them nothing. The report also shows an auto loan from a local bank which I took out in 1990 and repaid in full in 1993. The fact that my credit report shows no issues in 35 years adds to my score even if derogatory comments are only good for ten years. Let's say I had credit issues in 1989, would I have been given a mortgage in 1996, credit cards in 1991, 1994, 1997, 2005, and 2007, or a car loan in 1998? A credit report and a credit score are two different things.
coltle6920
Member
Spent years acting like a fool charging whatever I wanted to buy and paying interest for the privilege.About twenty years ago I decided that if I can't pay off the bill in thirty days I don't need the item that badly.
I turned my life around some years ago.The mortgage is paid off and I paid cash for my 2006 F-150 when I bought it new. I use the Credit Card Companies money for thirty days and pay off whatever the bill is.
I am being repayed for doing this by my credit score dropping a few points every quarter.Go figure! If my score goes down to zero it wont bother me a bit.
I turned my life around some years ago.The mortgage is paid off and I paid cash for my 2006 F-150 when I bought it new. I use the Credit Card Companies money for thirty days and pay off whatever the bill is.
I am being repayed for doing this by my credit score dropping a few points every quarter.Go figure! If my score goes down to zero it wont bother me a bit.
Your credit score is going down because you are not using credit/long term borrowing. They score you for how good of a risk you are when you have to re-pay over a long term. If you pay with cash or repay the credit card in full every month (they don't make any money off you),,they are not seeing you building any (new) history as a creditor.
Sounds crazy at first,,but that's how they make their money,,by charging interest and collecting on that.
You have to be in their 'debt' and make timely payments over a long period to get the high score. Then the creditors will be willing to gamble on lending more money to you as they feel assured it will be paid back along with the interest which is their profit.
They don't like cash in full, repo's and foreclosures,,they make no money that way.
Gone are the days of the local store proprietor or bank knowing you personally and lending you money or extending credit because of that.
They do it based on the credit scoring now because there is no other way of these large world wide owned companys finding out who you are.
Many people aren't concerned with it till they go to buy a house or a car, then it makes a difference when the mortgage or loan is refused.
It is a bit intrusive to sit and look over one of these reports if you never have. There's usually stuff in there you've long forgotten about, some you never knew about.
They don't like me either. I pay off the card every month too.
Sounds crazy at first,,but that's how they make their money,,by charging interest and collecting on that.
You have to be in their 'debt' and make timely payments over a long period to get the high score. Then the creditors will be willing to gamble on lending more money to you as they feel assured it will be paid back along with the interest which is their profit.
They don't like cash in full, repo's and foreclosures,,they make no money that way.
Gone are the days of the local store proprietor or bank knowing you personally and lending you money or extending credit because of that.
They do it based on the credit scoring now because there is no other way of these large world wide owned companys finding out who you are.
Many people aren't concerned with it till they go to buy a house or a car, then it makes a difference when the mortgage or loan is refused.
It is a bit intrusive to sit and look over one of these reports if you never have. There's usually stuff in there you've long forgotten about, some you never knew about.
They don't like me either. I pay off the card every month too.
Rastoff
US Veteran
I'm right there with you. The only thing I'll ever get a loan for again will be a house and that's only if things change drastically.
It took me a couple of years, but I've dumped all my credit cards and paid off everything else except the house and that's next.
I worked in the banking/lending world for quite a few years and can tell you most people are not aware of how their credit score is figured.
The system looks at type of account (mortgage, vehicle, cc. etc.) Also how long the account has been used, repayment history and how much credit is not being used, but is available. Like a cc that has no balance, but is still open and could be used.
Even a cc paid off every month or not used at all reports to the credit agencies monthly.
Some companies don't even report to the credit agencies.
Things like court judgements, tax liens and past bankruptcies are included too.
In addition, each of the three big credit agencies may report different things, weigh those factors differently to figure your score.
All these and more make up your score. Contact Trans-Union, Equifax and Experian for a copy of your report. You are entitled to one free copy of your credit REPORT yearly. You are not entitled to your credit SCORE. Probably have to pay someone to get that.
The system looks at type of account (mortgage, vehicle, cc. etc.) Also how long the account has been used, repayment history and how much credit is not being used, but is available. Like a cc that has no balance, but is still open and could be used.
Even a cc paid off every month or not used at all reports to the credit agencies monthly.
Some companies don't even report to the credit agencies.
Things like court judgements, tax liens and past bankruptcies are included too.
In addition, each of the three big credit agencies may report different things, weigh those factors differently to figure your score.
All these and more make up your score. Contact Trans-Union, Equifax and Experian for a copy of your report. You are entitled to one free copy of your credit REPORT yearly. You are not entitled to your credit SCORE. Probably have to pay someone to get that.
I have a Platinum Visa card that was opened for me 3 years ago. I asked the bank rep on the phone to send me info, just to get him off my back. Instead he opened an account.
Better to let the account stand vacant or have it closed?
Better to let the account stand vacant or have it closed?
Ronj,
If you are not using the account, and don't ever intend to, my opinion, contact your bank and close it.
If it is open but you never used it, it is probably reporting a "positive" for your credit report and score. This "positive" will remain on your report for years, even after you close it.
Just my opinion.
If you are not using the account, and don't ever intend to, my opinion, contact your bank and close it.
If it is open but you never used it, it is probably reporting a "positive" for your credit report and score. This "positive" will remain on your report for years, even after you close it.
Just my opinion.
kwselke
Member
My mortgage is paid off. My truck is paid off. I really do not worry what my credit score is. I do still occasionally pull a free copy of my credit reports. This is basically an identity theft check to make sure someone has not opened an account I am unaware of. I have no annual fee American Express, Visa, and MasterCard credit cards all issued by USAA Savings Bank. I pay for everything I can by credit card for the rewards points and pay off the balances in full every month. I average $200 cash back every year. The way credit scores are calculated are proprietary secrets. I do know that if you have a card that goes unused for long periods it is better to write the company and request cancellation than to have it cancelled by the issuing financial institution.
Ogandydancer
Member
Steamloco76 already beat me to it. I really don't know why a prospective employer should need to know your credit rating and one of the most unfair things as I see it is an Ins. basing your rates on your credit score.
