My FICO Score

[RonBoyd]

For those that are worried about getting credit after retirement.

This was sort of a surprise to me:

I have not had a steady source of income for over twenty-five years... except SS. We run all expenditures through seven credit cards --about $4,000 a month (paid monthly).

The $41,000 debt is a zero-interest loan from Chrysler. I did this because the lack of Interest was roughly what investing would have gotten me... and that it might keep my credit rating alive.

Anyway, I now wonder what I have to do to get the other three points for a perfect score. <chuckle>

 

[jazz4cash]

You could try the Credit Journey tool offered by Chase. It has a ‘what if’ simulator tool. You don’t need an account with Chase.

https://www.chase.com/personal/credit-cards/free-credit-score

You should also check some other sources. I think I have at least 5 different “free” credit score services available from various bank and credit unions. They are all a bit different!

EDIT: PSA: credit scoring is a scam. Congratulations on a great FICO score.

 

[RonBoyd]

You should also check some other sources. I think I have at least 5 different “free” credit score services available from various bank and credit unions.

Yeah, I was being facetious about the three points (rather poorly, I guess).

Anyway, all of our credit cards update us every month as well as the three credit rating agencies.

 

[Time2]

Been retired 5 years, no SS, no pension, no income except what I withdraw from savings. For years my FICO stayed around 805. Then I took out an Amazon credit card (which I had trouble getting) and a HELOC. Suddenly my FICO score jumped to 843. Only makes sense to a lender, you have potential to get into more debt, OK, let's make it easier!

 

[aja8888]

Mine is 817...I guess I need a loan or more credit cards (I have 5 or 6).

No income except SS and dividends.

 

[Time2]

Mine is 817...I guess I need a loan or more credit cards (I have 5 or 6).

No income except SS and dividends.

I only had one CC (member for 31 yrs) when I applied for the Amazon card, they made me ask twice to be approved. Now, I have two!

 

[Texas Proud]

It is strange as I can have a score as low as 800 at one site and 840 at another...


My oldest sister got 850 at one time... not sure what she has now...


Remember, income is NOT part of the score as far as I know...

 

[OldShooter]

I check maybe as often as once a year and always seem to be in the 820-830 range. There was a recent column by Michell Singletary kind of joking around about her losing her 850 rating. IIRC she said that once you are in the high 700s you are basically done and will get the best rates wherever you apply. Above that point it's basically a braggin' rights game.

 

[Katsmeow]

Been retired 5 years, no SS, no pension, no income except what I withdraw from savings. For years my FICO stayed around 805. Then I took out an Amazon credit card (which I had trouble getting) and a HELOC. Suddenly my FICO score jumped to 843. Only makes sense to a lender, you have potential to get into more debt, OK, let's make it easier!

Part of what will help credit score is showing that if you have debt that you will pay it. If you have no debt then lenders have no way to know if you would pay any debt. If you have debt, though, you will be helped by making on time payments.

 

[jazz4cash]

Remember, income is NOT part of the score as far as I know...

That is correct. It does not account for assets either which is why I’m very skeptical if credit scoring is an accurate measure of credit risk.

 

[athena53]

I glance at mine but don't obsess over it. I get e-mails from Chase when the rating goes up or down- my spending is "lumpy" so there are some months I'm using up a lot of my credit line and some when it decreases. I always pay in full every month.

I agree that it's silly that income and assets don't seem to figure into it. They do ask for income when you apply for credit cards but Amex gave me a card with a limit of 40% of my income. Doesn't make much sense.

 

[OldShooter]

... I agree that it's silly that income and assets don't seem to figure into it. ...

WADR, given the amount of money at stake in making credit judgments I am sure that armies of statisticians working over many years have determined that ignoring income and assets is not "silly."

 

[Aerides]

FICO is a measure of your ability to juggle. Therefore, if you only have one card and pay it off every month, they don't really know how well you juggle - one ball, anyone can do that!

That loan is a big help as you have something besides just cards. With no mortgage or car notes in my history for many years, I won't get past the 820's.

 

[Time2]

WADR, given the amount of money at stake in making credit judgments I am sure that armies of statisticians working over many years have determined that ignoring income and assets is not "silly."

It's not silly, but probably for the wrong reasons, I suspect credit scores are so they facilitate more income for lenders by creating additional debt for consumers.
But then, I'm a skeptic!

 

[old medic]

My goal is to have a score BELOW 500.... No one wants to steal your identity then.

 

[djsander]

We don’t have loans or debt so we don’t need to juggle. I’m still miffed that to change our cell phone provider they wanted to do a credit check for a plan that was under $100/month. The guy said hang on I’ll check with the manager. He came back and said nope have to do it in case you want to buy an accessories. I politely told him we would pay for any accessories outright. He said let him check again. He came back and said still no. We said ok and walked out. I think this day and age to have credit checks for all these superfluous things is ridiculous since they can just cut you off for non payment.

 

[mystang52]

I never think about my score until I get that email "Your FICO Score went down!" Naturally, it happens in a given month where I charged more than usual, typically when we travel. What never fails is my score then goes from 830-ish to 800 or so. But it might be 3 months before it goes back up. There's also a flaw in the system if it ranks some type of installment loan as a positive, but somehow doesn't consider credit card usage - and paying it in full each month - as equal weight in credit-worthiness. As others mentioned, though, in the end it's nothing more than bragging rights, at best.

 

[Katsmeow]

That is correct. It does not account for assets either which is why I’m very skeptical if credit scoring is an accurate measure of credit risk.

There are plenty of people who have a lot of assets and incomes you don't pay their bills. There are plenty of people with very limited income and assets who do pay their bills. There ae some situations where a potential creditor does ask about income and assets because they do want to see if you have the income and assets to pay. We just got a mortgage and I had to prove those things. On the other hand, if you someone is deciding to offer a credit card to someone with a $2000 limit they are much more interested in whether the buy has a history of paying those kinds of bills.

 

[jazz4cash]

There are plenty of people who have a lot of assets and incomes you don't pay their bills. There are plenty of people with very limited income and assets who do pay their bills. There ae some situations where a potential creditor does ask about income and assets because they do want to see

Exactly! Thats why I consider payment history to be legit. It’s not legit when credit bureaus twist themselves into a pretzel to formulate a proprietary “score” with only a limited view of your finances.
I think every potential creditor has asked me for income info but mortgage lenders are the only ones that require proof.
I can ask for credit line increases on all my cards to reduce my utilization and increase my “score”. Am I a better risk because I made a few phone calls?

 

[LateToFIRE]

Deleted: Stupid question... Apparently credit scores have little to do with income or assets. Hmmm

 

[Aerides]

^
if your last big loans or mortgages were paid off over 5 years ago, they are irrelevant to FICO, Similarly, assets and income don't count.

 

[OldShooter]

I don't think the agencies have any motivation except to sell access subscriptions to lenders (and, to a lesser extent, entities who use the scores to evaluate individuals' financial condition).

So the agencies are going to be working hard to make their scores as predictively accurate as possible. It is up to the lenders to decide what credit they are willing to extend and to whom. It doesn't make sense to me that the agencies would have ulterior motives like some of the posts here seem to imply. It's a pretty simple business: collect as much current and historical data as possible, agitate in the statistical equivalent of a food processor, and produce predictions. Test predictions as the future unfolds. Tune and repeat.

 

[MarieIG]

My credit score has remained stuck in the 700's for years. I don't get it.

Past 35 years: Income quite well above average, never a missed/late loan or CC payment, borrowed and repaid millions of dollars over the years, never carry a balance on credit cards, jumbo mortgages covered by properties worth twice the loans, liquid assets in the millions. So what gives Why don't I deserve a +800 score?

It may be the amount owed vs. available credit . . .

 

[bada bing]

The FICO algorithm has been reverse engineered for many years. There are tricks you can do to elevate your score, in some cases dramatically. I set up my finances and credit years ago to maximize my score. It costs nothing, not even time/effort, after the initial set up. I have maintained a "perfect" FICO score pretty much continuously for the last 8-10 years. What matters is what accounts you have open, how much credit is available and what percentage of credit you are utilizing on the day your score is pulled for reporting. I pay no interest, pay off card balances monthly in full and everything I have is on auto-pay. The set up is in the timing of payments verses the reporting dates of card accounts to make your utilization "perfect" for the FICO gods. Once you synchronize your autopay dates, it runs itself. All that said, I get no benefit from an optimized FICO. It is a remnant of my last mortgage application 14 years ago now. I haven't opened any new accounts of any type in a decade.

I spent the month of Sept. (actually 6 weeks) in Thailand and on the big island of Hawaii. I put more than usual on my cards and didn't bother to adjust my payment schedules to compensate for FICO scoring. First time I've scored below perfect FICO 850 in over 2 years.

 

[HI Bill]

...There's also a flaw in the system if it ranks some type of installment loan as a positive, but somehow doesn't consider credit card usage - and paying it in full each month - as equal weight in credit-worthiness.

Yeah, they look at the month-end balance. If it rises too much, your credit score goes down, even if you pay it off in full monthly. Either accept that, or do what I do, and make one or two extra payments per card per month to keep the ending balance low. 850/850 (FICO 8) and 890/900 regular FICO!