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FICO score
Old 01-13-2007, 06:56 PM   #1
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FICO score

I am thinking of buying a house in the next year or so. If I buy a new house, my plan is to take out a short term mortgage on the new house and sell the current house once I've moved. Once the current house sells I will use the proceeds to pay down the mortgage or hopefully pay it off in full.

Today I ordered a FICO score from Experian. I expected I would rank in the highest category. Instead it returned a score of 825 out of 990 giving me a B rating.

My file contains the following:

Credit Items:

VISA

$8,500 limit. One 30 days past due (I was late by a few days about four or five years ago). High balance $5,716 recent balance $2,698. I pay this card off monthly and charge most living expenses on it for the frequent flyer miles and to keep track of my spending. Date opened 01/1990

Macy's credit card

$500 limit. Open, never late. Opened 06/2006. High balance $364 Recent Balance $0.

Mortgage

Original amount $87,500. Paid, closed/never late Date opened 09/1993 Last reported 08/2005.

Car loan

Bank of America. Original Amount $5,062. Paid, closed/never late. Date Opened 09/1993. Last reported 11/1997.

Car loan

American Honda Finance. Original Amount $10,644. Paid, closed/never late. Date opened 08/2003. Last reported 10/2004.

So, I've paid off a house and two cars early and have had the same credit card for 17 years.

I'm puzzled why my score isn't higher. The one 30 day late can't be dinging me that much. The only thing I can think of to raise the score is to increase my VISA limit.

Does anyone have any ideas as to how I can raise this score ?

I would think the fact that we have no debt and a fairly high gross income would help us with the loan rate, is this correct ? Any idea how big of a deal my "B" rating is in the big picture of getting a loan ?

Thanks,

-helen
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Re: FICO score
Old 01-13-2007, 07:00 PM   #2
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Re: FICO score

I would ask the bank to bump your CC limit, but otherwise don't sweat it. Your score is more than adequate to get the best mortgage rates.

FWIW, I saw an article a while back that indicated a large chunk of those with the very highest credit scores were dead.
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Re: FICO score
Old 01-13-2007, 07:03 PM   #3
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Re: FICO score

Hmmm, no, I was going to say try raising the limit on your credit card, but I don't know how much difference that will make.

DH and I bought a house 6 months ago with, I think, slightly lower scores, and we still qualified for the lowest advertised mortgage rates with our credit union, no extra documentation or hassle.
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Re: FICO score
Old 01-13-2007, 07:05 PM   #4
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Re: FICO score

Quote:
Originally Posted by brewer12345
FWIW, I saw an article a while back that indicated a large chunk of those with the very highest credit scores were dead.
Oh crap. I don't like that option.
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Re: FICO score
Old 01-13-2007, 07:07 PM   #5
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Re: FICO score

I was under the impression that the highest score is 850.... Maybe things have changed recently.

Based on your score you will still get the best offers from lenders as it is considered above average.
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Re: FICO score
Old 01-13-2007, 07:08 PM   #6
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Re: FICO score

Quote:
Originally Posted by Helen
Oh crap. I don't like that option.
Yeah, but lenders just want to see that you are over the line. They don't care by how much. Your score is more than adequate.
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Re: FICO score
Old 01-13-2007, 07:14 PM   #7
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Re: FICO score

Quote:
Originally Posted by Corporateburnout
I was under the impression that the highest score is 850.... Maybe things have changed recently.

Based on your score you will still get the best offers from lenders as it is considered above average.
The top FICO score is 850. However, what you get from any of the three credit bureaus is a "credit score" not a "FICO" score. The "credit" scores' use a different range of numbers.

To get your FICO score, go to http://www.myfico.com
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Re: FICO score
Old 01-13-2007, 07:14 PM   #8
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Re: FICO score

Quote:
Originally Posted by Corporateburnout
I was under the impression that the highest score is 850.... Maybe things have changed recently.
I also thought 850 was the top score.
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Re: FICO score
Old 01-13-2007, 07:24 PM   #9
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Re: FICO score

Just a quick footnote to my post a few minutes ago:

I check up on my credit report at the minimum 3 times a year (one report each quarter), using http://annualcreditreport.com . And usually I check my FICO score about twice a year (mostly for "sh*ts & giggles"....and bragging rights amongst my financially feeble co-w*rkers....yes, I'm an a**hole!!).
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Re: FICO score
Old 01-13-2007, 07:25 PM   #10
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Re: FICO score

Quote:
Originally Posted by Goonie
The top FICO score is 850. However, what you get from any of the three credit bureaus is a "credit score" not a "FICO" score. The "credit" scores' use a different range of numbers.

To get your FICO score, go to http://www.myfico.com
I checked the site out early, but I don't see where I can buy just the FICO score. The closes I found is the FICO Standard. This is what it says:

"*About FICO scores and credit reports
FICO scores are the credit scores most lenders use to determine your credit risk. You have three FICO scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each FICO score is based on the information that each credit bureau keeps on file about you. As the information in each of your credit reports change, your credit scores tend to change as well. When you purchase your FICO scores and credit reports, you are getting a snapshot that is accurate at the time of your purchase. However, it’s important to note that as the information in your credit reports changes, your FICO scores can also change. That’s why we recommend checking all three of your FICO scores and credit reports regularly - at least once a year."

They want $15.95 for the credit report and "FICO" score from each reporting agency. It sounds like the same thing I can get for $5.95 since the credit report is free.
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Re: FICO score
Old 01-13-2007, 07:37 PM   #11
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Re: FICO score

Quote:
Originally Posted by Helen
I checked the site out early, but I don't see where I can buy just the FICO score. The closes I found is the FICO Standard.
They want $15.95 for the credit report and "FICO" score from each reporting agency. It sounds like the same thing I can get for $5.95 since the credit report is free.
Though I didn't remember the cost off the top of head, you're correct that there is a charge at myfico for a FICO score, and no charge for just a regular credit report at annualcreditreport.

My original post in response to the OP was simply to differenciate between a FICO score and the credit scores given by the 3 bureaus.

The first time I obtained my FICO score was merely out of curiosity.....now (as stated previously) I do it MOSTLY for "sh*ts & giggles" and harrassment purposes at w*rk.
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Re: FICO score
Old 01-13-2007, 07:41 PM   #12
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Re: FICO score

I am one of the people who have no idea what my FICO score is....

It will cost me MONEY to find out... so why would I want to pay for a useless score
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Re: FICO score
Old 01-13-2007, 07:47 PM   #13
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Re: FICO score

FYI, I just found this. You can use the code CPPSAVINGS to get a 20% discount on the FICO Deluxe for all three reports and FICO scores.
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Re: FICO score
Old 01-13-2007, 07:49 PM   #14
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Re: FICO score

When we refinanced a while ago, the loan folks gave us our FICO scores and the a copy of the report. They give you the top 4 reasons for why your score is not perfect. Since you paid for your report and score, you may have some top reasons somewhere on the report for why it is the way it is.

I think myfico.com also lists some of those reasons, so just go through those reasons for ideas. I'll guess the 30-day late is a big one. Others I have seen are not enough credit used and too much credit used.
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Re: FICO score
Old 01-13-2007, 08:08 PM   #15
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Re: FICO score

Thanks all. I will file a dispute with the 3 credit agencies. The one late payment was from when I first started using the online bill pay. My payment was credited to my savings account, it happened four times after that but I caught the error in time.

I'll be curious as to how much of an impact it will have if I can get it removed. I don't really have any proof. I guess I'll research how to dispute an error.

Thanks for all your help.

-helen
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Re: FICO score
Old 01-13-2007, 08:17 PM   #16
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Re: FICO score

I suspect it won't make much difference, but there is no harm in filing a dispute. Many times someone files a dispute and the creditor never responds to the credit bureau, so they have to drop the black mark. I don't think it will matter anyway, since you more than qualify for top rates. Remember, we are living in a workld where anyone who can fog a mirror and falsify fill out an application gets a humongous mortgage.
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Re: FICO score
Old 01-14-2007, 12:09 AM   #17
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Re: FICO score

FICO...........what a scam!
Once upon a time, Fair Isaac said lenders could not reveal credit scores to consumers as it would game the system. Now that they have no choice, they're selling the scores left and right.

Honestly, Helen.............other than correcting any errors, your score should be plenty high enough to get the best mortgage rates. I've tried to fix errors on my file and it can be extremely difficult.......especially when they are trivial anyway. I monitor 3 bureaus quarterly just to monitor who is monitoring me and to protect against ID theft.
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Re: FICO score
Old 01-14-2007, 09:49 AM   #18
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Re: FICO score

Quote:
Originally Posted by jazz4cash
FICO...........what a scam!
Once upon a time, Fair Isaac said lenders could not reveal credit scores to consumers as it would game the system. Now that they have no choice, they're selling the scores left and right.

Honestly, Helen.............other than correcting any errors, your score should be plenty high enough to get the best mortgage rates. I've tried to fix errors on my file and it can be extremely difficult.......especially when they are trivial anyway. I monitor 3 bureaus quarterly just to monitor who is monitoring me and to protect against ID theft.
Ditto, I pay to have my credit report monitored. As much as I hate to pay for the service, it insures that I won't fall pray to ID theft again.
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Re: FICO score
Old 01-14-2007, 09:53 AM   #19
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Re: FICO score

Quote:
Originally Posted by Helen
Thanks all. I will file a dispute with the 3 credit agencies. The one late payment was from when I first started using the online bill pay. My payment was credited to my savings account, it happened four times after that but I caught the error in time.
I'll be curious as to how much of an impact it will have if I can get it removed. I don't really have any proof. I guess I'll research how to dispute an error.
It's not a waste of your time, but raising your score from 825 won't improve the interest rate on your mortgage or give you a deal on any of the other financing requirements. People who are struggling to obtain loans have FICO scores down in the low 600s or even lower. Your score is higher than ours and we're regularly pelted with offers to borrow other people's money at attractive rates.

Your time might be better spent on open houses & on researching credit union financing.
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Re: FICO score
Old 01-14-2007, 09:54 AM   #20
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Re: FICO score

Quote:
Originally Posted by Corporateburnout
Ditto, I pay to have my credit report monitored. As much as I hate to pay for the service, it insures that I won't fall pray to ID theft again.
How so? Someone can still steal your ID even with credit report monitoring.
With free credit reports available why pay for it? If you are married, you can get 6 free credit reports per year. You get one in Jan, May, Sep. Your spouse gets one in Mar, July, Nov. That's one every two months. It costs nothing.
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