FICO Score Inflation?
- Thread starter tbm5690
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Its still a good idea to check, incase someone is stealing your info to open bogus cards etc.
This is my only real issue with the system. You can do everything right and still get screwed over. Like when Equifax was hacked and lost ll the data for millions, no one did anything about it. Just shrug.
It happens, and has to me. Someone opened two credit cards in my name, took me 2 years to get it cleaned up.
My credit is locked
There's a variance because each FICO score is designed to gauge a person's credit worthiness in varying scenarios.
Looking for general credit worthiness? FICO Score 8 and 9 are the most common uses.
For a car loan? Experian, Equifax, and TransUnion all use Auto Score 8 and/or 9, but each also have their own unique Auto Score that they will use that will differentiate them from each other.
For a mortage? Experian will use Score 2, Equifax Score 5, and TU Score 4.
This goes on and on, including differing Bankcard Scores which will establish credit worthiness on credit cards. Why do they do this? To prevent the exact issue that you're complaining about. If they were all the same and reported the exact same number, then what would be the purpose of having three different credit bureaus? You'd also see a very real credit crunch as everyone would be subjected to the same criteria, but while some may have been approved for a home or car loan under an old criteria, they may not be approved under the new criteria. With no other alternatives, they're out of luck. The current system allows for credit worthiness decisions to be "tailored" to the applicant, and not have to be painted by the same brush as everyone else. Lenders can choose to loan money based on a multitude of factors, and not just be shoehorned into one preset equation.
The "formula" for each credit bureau is not a secret. It is easily found. The issue is that you're conflating differing scores with ambiguity and helplessness. It's very clear how things are calculated and what you should do to preserve, or increase, your score. However, and this is fundamental to understanding credit, your score is not the end all, be all. It's a reflection of your credit report. Banks are not looking at your score and saying "yep, he's good to lend to" or "nope, the score is too low". They're looking at your credit report and examining the types of debts you have, your payment history, your available credit, etc. Once they understand that, they make their decision. The score is really more of an indicator to the consumer to provide a gauge on their credit worthiness. Lenders don't need a numerical score to do that for them.
I take anything more than 200, I do the same with opening and closing savings accounts, checking accounts, credit cards and then multiply it by two (double it) for my wife and I opening separate accounts.
It’s just a hobby, I’m retired now I’m guessing we came close to maybe $4000 last year between opening and closing credit cards cashback on credit cards, opening and closing checking accounts in separate names.
So for example, if I get a $250 and used up all the others. I’ll take it and that’s almost like me saying I get Netflix for free for a year.. that’s what keeps me going. Pretty much I get paid $250 an hour when I do these things.
Opened a checking account in my wife’s name, had her paychecks go there, two or three months later they deposited $400 in that checking account. Now I’ll close it and open a new one someplace.
For me, I do the same thing, but with my Social Security checks.
Savings account we collect, 4% or more. I’m just about to close out the 4% one because there’s a 4.6% offering from another.
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Variance because not all credit is reported to all three agencies. The three agencies might have different data available to them.
Some of the public might also be confused as there are multiple different credit scores produced by the three credit agencies, not all of them are official FICO scores. They are credit agency scoring algorithms.
I don’t think these questions were to me, but also for number two as I posted in the paragraph above credit agencies produce multiple different scores for each consumer.
The score for example that a mortgage lender will look for is completely different than a score that an automobile dealer will look at or some local credit cards at someplace.
Meaning they produce different products that lenders subscribe for different lending criteria and related scoring for those products.
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Reading these posts, let’s not forget one very important aspect for some who may think there are other factors besides credit scores that matters to lenders. Not really except for maybe a mortgage company nobody else checks your liquid assets.
However, what you pay for almost all in every type of insurance products your entire life will also be reflected in your credit rating, which is also figured into your insurance score.
However, what you pay for almost all in every type of insurance products your entire life will also be reflected in your credit rating, which is also figured into your insurance score.
I knew someone had to tell us they have an 850. Never fails
I keep them all frozen. I can unfreeze them in under 60 seconds.
Credit Karma provides a VantageScore 3.0 score. FICO is another credit score. The latest version is VantageScore 5.0. VantageScore 3.0 scores range from 300 to 850. FICO has versions 8 and 9. Each scoring system puts a different weighting on various credit indicators like utilization rate, history of payments, judgements, etc.
I believe Canada is different, and scores are 300 to 900.
Could be. No idea how credit scores work in other countries.
If you say so.
I recently applied at Chase Bank to get pre-approved for a mortgage. My Experian FICO Score from the bank was more than 15 points less than my FICO Score on my Experian account. It moved my score from an 8XX number to a 7XX number. Big difference? Heck if I know.
I find it totally intriguing that all of these reporting agencies also offer plenty of "better" credit card and loan options on their sites. Hmmmm.
I have access to and have reviewed everyone posting here's FICO scores. Some of you should be embarrassed...as I'm sure you are.
For a substantial fee, I will agree to be your personal financial life coaches. You know who you are.
For a substantial fee, I will agree to be your personal financial life coaches. You know who you are.
FICO score reflects a snapshot of your current credit usage, types, and historical payment history. The change is score is likely influenced more than just closing an inactive account.Within the past few months I've noticed my FICO gain 20+ points despite no major changes other than me closing a card that has had a zero balance for quite some time. In theory, that should have caused a score decrease due to a loss of available credit, yes? Curious if they went to a different scoring metric now that caused increases across the board? Anyone else see unexplained movement? FICO now tracks the oil market maybe?
This!
It’s all so confusing. Credit Karma says I have almost 730 but the FICO score displayed in the Amex app is like 50 less.
Hopefully it doesn’t ruin the interest rates if I need to buy a car soon
Hopefully it doesn’t ruin the interest rates if I need to buy a car soon
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