Re: Factors in Credit scores

Posted by Linda on February 20, 2002 at 01:57:59:

In Reply to: Factors in Credit scores posted by Debbie on February 19, 2002 at 16:42:28:

Well, first of all, there will always be "reason codes" -this is Fair Isaac's idea of how to explain this random number generator they call a credit score to us ignorant consumers. :) So even a person with 1 inquiry in the previous 2 years might get "too many inquiries" as a reason code if, in fact, their score was over 800 and there were no real reasons to give.

647 is dandy for a mortgage. Go for it!

1 1/2 - 2 years is a short credit history, but over time you will see you score go up - the accounts age. Keep the oldest accounts open, they will improve your score (they measure average age of the accounts), even if you get better cards and no longer want to use the old cards.

Retail accounts are store cards. To have a well-rounded credit "portfolio" (for some reason), FICO thinks you should have high interest department store charge cards, even if you don't want them. I said "phooey" and haven't bothered with it. What is the logic of this? Doh. Anyway, if you have a favorite store, the next time they give you 10% off your first purchase to open an account, take the deal. Then your reason code will say "too many accounts with balances" or "too many newly opened accounts." It's a game you can't win, hehe.

It IS fun playing though, isn't it?

Linda

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