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Old 06-11-2009, 11:55 AM   #61
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Hmmmm, maybe they figure with that many accounts, the odds are extremely high that you will be late on one of them once in a while, and they can collect their late fees? And that lateness would be an accident, not really a credit risk (based on other areas)?
My guess is that they believe 42 different entities have deemed the person is creditworthy, so that's a stronger "plus" than just 2 or 3 entities reaching the same conclusion.

Which, of course, makes no sense, because all 42 entities looked at the same FICO score and just rubber-stamped the application based on that number. "Hey, everyone else thinks this risk is low, we should, too." Like the whole CDO thing/subprime mortgage bubble/etc.

Looking at how "the industry" deems people are/are not good credit risks has helped me understand why we are in our current mess.
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Old 06-11-2009, 12:36 PM   #62
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There seems to be a dichotomy here. If I go out and open 40 accounts I will move from and F to an A. However, if you run the simulator, opening a new credit card lowers your score. So I would most likely go to an F in some other section.
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Old 06-11-2009, 12:52 PM   #63
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There seems to be a dichotomy here. If I go out and open 40 accounts I will move from and F to an A. However, if you run the simulator, opening a new credit card lowers your score. So I would most likely go to an F in some other section.
It seems like improving some areas harms others, as you say.

Opening a new credit card would help the number of accounts, AND it would improve your utilization ratio (assuming you didn't run up more debt), but would hurt the average age of open accounts. Pick your poison...
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Old 06-11-2009, 01:12 PM   #64
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There seems to be a dichotomy here. If I go out and open 40 accounts I will move from and F to an A. However, if you run the simulator, opening a new credit card lowers your score. So I would most likely go to an F in some other section.
Exactly. I have 2% utilization ratio - better than 92% of people. $2700 debt and $117,000 limits. But that is because the denominator is so large due to the huge number of CC's I have and the relatively large credit limits.

I also have a D for average age of accounts due to opening up all these accounts recently.

In general, opening new accounts hurts at first and helps in the long run as accounts age.

I guess the theory is that if one has a lot of accounts but doesn't need the credit (ie low utilization rates) then that person is a good credit risk (ie isn't overextended).
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Old 06-11-2009, 02:34 PM   #65
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I also got dinged badly for not having enough accounts... one credit card and a zero balance HELOC for emergencies = D.
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Old 06-11-2009, 06:29 PM   #66
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From May 2009:

PLUS Score from Experian
This PLUS Score is based on information from your Experian credit report.
Your PLUS Score is: 798 on a scale of 330 - 830.
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Old 06-11-2009, 10:22 PM   #67
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My score was 796. I also received a D for Total Accounts of 19. I really don't like seeing a D on my report card. I know what would have happened if I brought home a D on a report card. Mortgage is paid off and no other type of loans. Credit cards paid off monthly.
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Old 06-12-2009, 06:06 PM   #68
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I just found out from the AMEX statement that they have a free credit score service available if you have an AMEX card. Just checked mine - 795 on Experian I guess its Ok? I never buy anything on credit so am not sure what the practical significance of this really is.
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Old 06-14-2009, 12:59 PM   #69
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I got a 766. When I refied a few months back my official scores from the 3 credit bureaus were 805-811.

Got a "C" for average age and number of accounts open. $165K total debt. Hey, my mortgage is $160k.
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Old 06-14-2009, 01:30 PM   #70
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What a gyp. I got a 737. 2 open accounts, 10 closed accounts. That's what I get for paying off my mortgage, having 2 credit cards, and loans of any sort.
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Old 06-14-2009, 02:40 PM   #71
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They can't provide a credit score if you have a credit freeze in place, so I'm out of luck. We use the 'nuclear option' of freezing to prevent identity theft. Since we rarely ever apply for credit, it works for us, but has the downside of not being able to take a peek at our credit score.
Just curious - how'd you do the freeze? Using one of those services or did you write the individual credit reporting firms? If the former, which service did you use? If the latter, how does one go about that and do you need to 'refresh' it often?
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Old 06-14-2009, 02:48 PM   #72
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What a gyp. I got a 737. 2 open accounts, 10 closed accounts. That's what I get for paying off my mortgage, having 2 credit cards, and loans of any sort.
Hey - i got an F there too - 4 open and 6 closed accounts. Guess we're just a couple deadbeats.
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Old 06-14-2009, 06:14 PM   #73
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Hey - i got an F there too - 4 open and 6 closed accounts. Guess we're just a couple deadbeats.

Me too, I got an F there, an A or n/a everywhere else.

2 open accounts, 5 closed.

My score was a 758.


Funny, it shows my 'total debt' equal to my last credit card balance (which gets paid in full every month).
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Old 06-14-2009, 07:46 PM   #74
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I liked that on the credit simulator, if I declared bankruptcy, that my score would go from 781 to 702. I got a D on the age of cards and D on the number of cards. With zero debt, I got N/A on that part. As on the rest.

Very entertaining!
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Old 07-02-2009, 09:09 AM   #75
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My score from this website was 70 points lower than the score from experian that was used by PFCU in approving my equity loan.

Jim
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Old 07-02-2009, 11:38 AM   #76
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My score from this website was 70 points lower than the score from experian that was used by PFCU in approving my equity loan.

Jim
Don't forget that there are two different credit scores. You need to find out from the credit reporting agency if their score is called the "vantage" score, and if it is ask for a FICO score. To different scales. FICO is the one most widely used by insurance companies, credit card companies and other lending agencies. Some one else may have a better description.
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Old 07-02-2009, 11:42 AM   #77
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Don't forget that there are two different credit scores. You need to find out from the credit reporting agency if their score is called the "vantage" score, and if it is ask for a FICO score. To different scales. FICO is the one most widely used by insurance companies, credit card companies and other lending agencies. Some one else may have a better description.
And a general rule of thumb, unless you can get a lender to share it with you when you apply for credit, is: If you didn't have to pay for the score, it's not a FICO.
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Old 07-02-2009, 03:42 PM   #78
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And a general rule of thumb, unless you can get a lender to share it with you when you apply for credit, is: If you didn't have to pay for the score, it's not a FICO.
Penfed mailed me the ltr with my score, it didn't say whether or not it was a FICO score.... Too many scores to keep track of. I was just surprised at the difference.

Jim
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Old 07-03-2009, 08:19 AM   #79
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Your caution is noted and very wise, but this one is legitimate. It's been featured in several prominent financial publications and partners with TransUnion, which is one of the three major credit bureaus.

Having said that, yes -- people should be extremely cautious about this sort of thing until they've done all the due diligence required to convince them of its legitimacy. And I'm pretty sure the Wall Street Journal, of all places, isn't going to be printing an article promoting a service that's a scam and a hideout for "identity thieves."
I'll bet you the WSJ had article about how wonderful the Madoff hedge fund
is a while back.
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Old 07-03-2009, 09:15 AM   #80
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At first check of creditkarma we were 775 and 749. Got an F on number of accounts.
DW applied and was approved for a new card (account) and her score went from 749 to 758. Don't know the credit limit on the new card net. Still gets F for number of accounts. We will probably just live and be happy with the F.
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