No, Credit Score reflects the discipline and responsibility characteristics of a person. I started at 690 after my divorce, through discipline and hard work I have raised my credit FICO score to 840. Discipline, accountability and responsibility unfortunately are terms our “liberal” society does not want to address!!
If your FICO score is 840, for example, you’re just 10 points shy of the highest score possible, and your credit is “super-prime.” But if you have an 840 VantageScore 2.0, it’s not as spectacular because you’re 150 points away from the highest possible score.
Im a junior in college with loans and 2 credit cards, currently my credit score is 759. I am planning on working over the summer and I intend on buying a car, do you think I should wait for a bit longer and try to increase my score, or do you think I will be able to get decent rates with what I currently have?
While it is great to get a ‘free’ score from credit.com, they miss the mark compared to the actuals due to estimation of a credit score. Credit.com has me in the mid to high 700’s while my actual (on the 850 scale) is over 800. Caveat emptor!!!
In fact, the Pavelkas have a mortgage (with four years left,) an equity line that he usually uses to buy cars and then pays off, four credit cards with amounts due this month (they pay the bills in full each month) and a total of eight credit cards with available credit exceeding $120,000.
I had the same problem! I saw that my credit score was high so I was thinking hmmm why not go and apply for a credit card, thought I could manage it but then temptation got out of hand. So my credit score is EXTREMELY low, very shortly after opening up the accounts. Its good to know that if I just pay off the balances and keep the balance lower than 30% my credit will shoot back up 🙂
Credit scoring is used throughout the credit industry in South Africa, with the likes of banks, micro-lenders, clothing retailers, furniture retailers, specialized lenders and insurers all using credit scores. Currently all four retail credit bureau offer credit bureau scores. The data stored by the credit bureaus include both positive and negative data, increasing the predictive power of the individual scores. TransUnion (formerly ITC) offer the Empirica Score which is, as of mid-2010, in its 4th generation. The Empirica score is segmented into two suites: the account origination (AO) and account management (AM). Experian South Africa likewise has a Delphi credit score with their fourth generation about to be released (late 2010). In 2011, Compuscan released Compuscore ABC, a scoring suite which predicts the probability of customer default throughout the credit life cycle. Six years later, Compuscan introduced Compuscore PSY, a 3-digit psychometric-based credit bureau score used by lenders to make informed lending decisions on thin files or marginal declines.
I’m not sure what you are doing that results in your score. Perhaps it’s because you haven’t had credit with the same companies for long enough? My score is 819. I don’t have a car loan or a mortgage either, and have never paid late. I also don’t have a student loan. Perhaps it was credit related to your divorce? By the way, my credit score was 794 for a long time because I got a new credit card. Now that all my credit cards are at least 6 years old, and one is over 20 years old, they raised my score.
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FICO scores are used by many mortgage lenders that use a risk-based system to determine the possibility that the borrower may default on financial obligations to the mortgage lender. For most mortgages originated in the United States, three credit scores are obtained on a consumer: a Beacon 5.0 score (Beacon is a trademark of FICO) which is calculated from the consumer’s Equifax credit history, a FICO Model II score, which is calculated from the consumer’s Experian credit history, and a Classic04 score, which is calculated from the consumer’s Trans Union history.
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No need to obsess about hitting that 850 mark. But if you want to try and reach it: Pay all your bills on time, eliminate nearly all of your debt (excluding a mortgage) and use, on average, no more than 7% of your available credit from all your accounts.
FICO scores will also vary depending on what purpose the borrower is borrowing. This means that a lender will often use different scores when a borrower is applying for a car loan compared to applying for a credit card. This is because different formulas are being used, such as FICO Auto Score. FICO Auto is an example of a FICO score that surpasses the classic 850 maximum score. FICO Auto possesses scores that range from 250-900 compared to a basic FICO score which ranges from 300-850. In addition to FICO Auto there are other FICO options for certain circumstances that allow a score greater than 850 but they are specialized scores and not a classic FICO score.
Achieving a perfect credit score isn’t necessary, but checking your credit scores and reports is. If you’re not tracking your credit on a regular basis, then you don’t know whether your scores are heading in the right — or wrong — direction.
Below, you can learn more about the average credit scores by year, state, age and more. Reviewing these credit score statistics will give you a better sense of how good your credit score is relative to those of your peers. Credit-score averages can also tell us a lot about the health of consumers’ finances and the strength of the economy.
Putting money in a savings account and then borrowing against it (“secured loan”) in order to build or maintain credit is one of the dumbest ideas I’ve ever heard. If you’re not a banker or a financier of some sort, you ought to be. What you are saying, in effect, is that you’re willing to give the banks your money (via interest) in order to maintain what is ultimately a completely arbitrary credit score.
The deficit is probably over 18 trillion dollars. People have to buy health insurance whether you have a job or not.. Some states have not seen minimum wage go up over 4 or more years ago. But we need more than minimum wage, we need living wage. Economy is moving up slowly. But getting job is stilll hard. Credit companies want to charge out fee. Having a credit card is a curse.
To take the right steps to boost your score, you need to start by understanding the basics of credit scores. The FICO credit score is the most widely used score in lending decisions and ranges from 300 to 850. A FICO score of 750 to 850 is considered excellent, and those with a score in that range have access to the lowest rates and best loan terms, according to myFICO.com, the consumer division of FICO. A score of 700 to 749 is good, and those with a score in this range will likely be approved for loans but might pay a slightly higher interest rate. A score of 650 to 699 is considered fair, and those with a score in this range will pay higher rates and could even be declined for loans and credit, according to myFico.com.
Sweden has a system for credit scoring that aims to find people with a history of neglect to pay bills or, most commonly, taxes. Anyone who does not pay their debts on time, and fails to make payments after a reminder, will have their case forwarded to the Swedish Enforcement Authority which is a national authority for collecting debts. The mere appearance of a company, or government office, as a debtor to this authority will result in a record among private credit bureaus; however, this does not apply to individuals as debtors. This record is called a Betalningsanmärkning (non-payment record) and by law can be stored for three years for an individual and five years for a company. This kind of nonpayment record will make it very difficult to get a loan, rent an apartment, get telephone subscriptions, rent a car or get a job where you handle cash. The banks, also use income and asset figures in connection with loan assessments.
I have always……………had good credit. When you read the report is is in,very good. HOWEVER, 9 years ago, a greedy Atty, who sent a bill 5x higher than he said the cost would be, (and by the way never did the work!), waited 3 years until after he knew I moved out of state TO FILE A SUIT IN SMALL CLAIMS COURT.
Some of these have different credit score ranges, so while VantageScore 3.0 and FICO scores run from 300 – 850, there are others that may run from 501-990 or 360–840, for example. You can generally find out what score’s in use by looking at the sheet or site on which the score is being supplied.
Good article. I guess the metrics can vary between different scoring models… The metric’s on FICO’s website is little bit different then what you’ve posted. They have poor credit listed between 350 – 599, fair credit as 600 – 659, good credit at 660 – 719, and excellent credit at 720 – 850.
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Just how much your score is lowered depends on several personal factors, like how late you paid and how often you tend to miss payments. Obviously, if you are a regular offender, your score will suffer more.
There are many different credit scores available to lenders, and they each develop their own credit score range. Why is that important? Because if you get your credit score, you need to know the credit score range you are looking at so you understand where your number fits in. Here are the credit score ranges used by major credit scoring models:
I’m seeing a lot of young people with this type of credit. A high score doesn’t always equate to good credit, or even if you have a high score, lenders will not always pick up for a loan. Young people tend to have hyper inflated scores because in reality, they have no credit. 1 year of paying off your card is not good enough. Lenders don’t really start taking you serious until you have had quite a few years under your belt. It took me about 3 years to get a good visa card from my credit union with a limit of $7500, and only then they did it after I had several installment loans that I paid off, and an auto loan. In the same way, not using your credit but having several open accounts is also bad. Lenders will the potential debt you could get into, and if you have 10 cards with $1000 limits each, you have the potential debt of $10,000 and they actually take that into consideration when they look at your debt to income ratio. The best way is to open maybe 2 cards (major cards not store as they have high interest rates) and use them only occassionally being sure to pay them off in 1 month.
Don’t Get Discouraged: Even if you never reach 850, “merely” having excellent credit is an amazing achievement. It will save you boatloads of money over the course of your life. And it won’t ever stand in your way like a “bad” score. Plus, you may find consolation in the fact that having excellent credit means your score is higher than over 60% of people, according to WalletHub data.
I went through quicken loans for a refinance and my credit score got slammed and I got turned down double slam cause I don’t owe over a $100,000.,can’t win either way you go. From 725 down to 620,i’ll pay off what I have and the hell with this credit score crap and disappear and don’t give a dam what it ever becomes.
Several factors affect individual’s credit scores. One factor is the amount an individual borrowed as compared to the amount of credit available to the individual. As an individual borrows, or leverages, more money, the individual’s credit score decreases.
You may have put your finger on the problem. Co-signing puts you on the hook for the full amount of your niece’s loans, and those will be considered debt obligations that you owe. However, it is possible to appeal a credit card rejection. Here’s information that may be useful to you:
When determining if you are a good candidate, a lender will look at your credit scores. Most lenders use FICO scores, but some lenders are starting to look at VantageScores as well to further determine your future financial risk if they were to extend an offer of credit to you.
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Georgia, along with several other southern states, ranks lowest in the nation for credit with an average score of just 636. In fact, based on the ranges above, that is considered poor credit. States with lower credit scores also tend to have higher debt balances and delinquency rates. That makes sense because both of those factors contribute to lower credit scores.
The highest credit score for any given credit scoring model is typically somewhere around 850, and if you have ever hit this mark, even for a moment, count yourself a rare financial creature.1 Is it even possible to hit this level of perfection in the realm of credit worthiness? Yes, some people have done it.2 Is attaining the highest credit score a worthwhile goal? Probably not.