Good FICO Score?
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Fleet Mechanic
Joined: Nov 2001
Posts: 1,553
Likes: 0
From: Corpus Christi, TX
Good FICO Score?
I just recently learned what my FICO score is, and have no clue on if it's good or bad. I know that there is no 'cutoff' number for good or bad credit, and it varies from bank to bank. Cool thing is, I can check my FICO score as long as I've got this blasted credit card with Providian. Anyways, here goes..
Number of Accounts: 5 (I should have 4 total, need to ck my credit report.)
Number of Open Accounts: 4 (Only should have 3. .)
Number of Closed Accounts: 1
Inquiries: 1
Derogatory Items: 0
Number of Delinquencies: Unavailable
Total Revolving Balances: $4,500-$4,999
1. The proportion of balances to credit limits on your revolving/charge accounts is too high.
2. The length of time your accounts have been established is relatively short.
FICO Score: 662
Soooo, for being a 22 year old, in y'all's experiences, is my score good, bad, or average? Could my cell phn. be considered as the extra account that I can't account for?
Number of Accounts: 5 (I should have 4 total, need to ck my credit report.)
Number of Open Accounts: 4 (Only should have 3. .)
Number of Closed Accounts: 1
Inquiries: 1
Derogatory Items: 0
Number of Delinquencies: Unavailable
Total Revolving Balances: $4,500-$4,999
1. The proportion of balances to credit limits on your revolving/charge accounts is too high.
2. The length of time your accounts have been established is relatively short.
FICO Score: 662
Soooo, for being a 22 year old, in y'all's experiences, is my score good, bad, or average? Could my cell phn. be considered as the extra account that I can't account for?
Post Fiend
Joined: Apr 2004
Posts: 6,473
Likes: 4
From: Lafayette, IN
I'm no expert here, but 662 isn't horrible. Probably not bad for a 22-year old. 700 is generally considered "very good," but I've seen references to scores over 850.
Some things you can do to improve your score: (others chime in here, too!)
1. Lower the amount of your open (unused) credit. If you have $20k of unused credit sitting on several cards, and only make that in a year, that's not good.
2. If you aren't using an account, close it.
3. Most importantly, pay off your credit cards and vehicle loans. Drive clunkers for a few more years if you have to so you can put more towards your cards. After you pay your cards off, there's no reason to have more available credit on a card than what you spend in a month.
At 22, you're still pretty young, and I can't stress this enough--DON'T DIG YOURSELF A HOLE!!! I'm 30, and still trying to fill in the hole I dug in my early-mid 20's, it's much easier to dig than to fill in, that's for sure.
Jason
Some things you can do to improve your score: (others chime in here, too!)
1. Lower the amount of your open (unused) credit. If you have $20k of unused credit sitting on several cards, and only make that in a year, that's not good.
2. If you aren't using an account, close it.
3. Most importantly, pay off your credit cards and vehicle loans. Drive clunkers for a few more years if you have to so you can put more towards your cards. After you pay your cards off, there's no reason to have more available credit on a card than what you spend in a month.
At 22, you're still pretty young, and I can't stress this enough--DON'T DIG YOURSELF A HOLE!!! I'm 30, and still trying to fill in the hole I dug in my early-mid 20's, it's much easier to dig than to fill in, that's for sure.
Jason
Mountain Pass
Joined: Feb 2004
Posts: 237
Likes: 0
From: VA
I may be wrong but I think the highest FICO score is 850. Your score isn't bad and will go up if you pay your debts regularly and reduce your total debt. Check your credit report and close accts you don't really need and verify that the accts you think are closed are just that (you may have to do this in writing). It helps your score not to change credit cards all the time by transferring balances. Get 1 or 2 good credit cards with low finance charges and hold on to them. Don't know about the cell phone affecting your score as an open acct but any late payments will bring down your score.
Posting Guru
Joined: Sep 2003
Posts: 1,174
Likes: 0
From: Near Wamego KS
Pretty good score, actually about as good as you can get at age 22. 500 and below and you are going to have some problems. My loan officer went ape &^&*% over our score (790) saying considering out income it was about as high as we could possible score. Guy I know is rated around 240(?) with a backruptcy or two in past 5 years. He cries about not being able to get a new car financed (why he thinks he needs a new car with the bills he has is beyond me).
Freshman User
Joined: Feb 2003
Posts: 35
Likes: 0
From: Apple Valley, CA
Well, the range for credit scores I believe is 400 - 800 and you are a little closer to the 800 side. The higher the FICO or credit score, the better. and where you are now is not bad. In any case, what can lower your credit score is if your total balance due in relation to available credit exceeds a good 50%. Example, if you have total credit available of $10,000 and your total balance due on those accounts is, say $6000. That will lower your credit score. However if your balance was $4,000, this will increase your credit score. The credit score is really all about risk level I think. The lower the FICO score, the higher the risk of credit problems, and vise versa.
At any rate, if you don't account for everything on your credit report, I urge to get a credit report from all 3 credit report agencies. You really should know what's what on your report, because of identity theft or unauthorized credits or loans in your name, errors, etc. Check your credit at least once every year.
Hope this helps
At any rate, if you don't account for everything on your credit report, I urge to get a credit report from all 3 credit report agencies. You really should know what's what on your report, because of identity theft or unauthorized credits or loans in your name, errors, etc. Check your credit at least once every year.
Hope this helps
Hotshot
Joined: Feb 2004
Posts: 11,697
Likes: 3
From: Marengo, Iowa
At any rate, if you don't account for everything on your credit report, I urge to get a credit report from all 3 credit report agencies. You really should know what's what on your report, because of identity theft or unauthorized credits or loans in your name, errors, etc. Check your credit at least once every year.
For example, I had a delinquent report on an account that was closed with 0 balance. Had me listed as over 90 days late at that time, with no balance. How do you get that done? nothing paid, nothing owed,hmmmm.... DUH???
For example, I had a delinquent report on an account that was closed with 0 balance. Had me listed as over 90 days late at that time, with no balance. How do you get that done? nothing paid, nothing owed,hmmmm.... DUH???
Freshman User
Joined: Feb 2003
Posts: 35
Likes: 0
From: Apple Valley, CA
Originally Posted by Fat&Bald
I may be wrong but I think the highest FICO score is 850. Your score isn't bad and will go up if you pay your debts regularly and reduce your total debt. Check your credit report and close accts you don't really need and verify that the accts you think are closed are just that (you may have to do this in writing). It helps your score not to change credit cards all the time by transferring balances. Get 1 or 2 good credit cards with low finance charges and hold on to them. Don't know about the cell phone affecting your score as an open acct but any late payments will bring down your score.
A word of caution on closing accounts you don't need. If you close an account that has no balance but an available credit of say $5000, this will actually lower your credit score. Two things here to consider, #1 : any kind of activity such as closing/opening an account will affect your credit score. #2 By closing an account, you reduce your overrall credit availability and increase your debt to credit ratio, it will lower your credit score.
If you have an account, leave it open, but don't use it. But at the same time, don't have too many open accounts. It's like a game between creditors and consumers, and if you get yourself in a bind, creditors have a way of making it worse very easily. On the other hand, if you are conservative in your use of your credit, the creditors will be in a bind because they need your business. Can anyone else agree on that?
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Postmaster
Joined: Jan 2004
Posts: 4,758
Likes: 7
From: colorado
well i hate to say it but 662 is not a good fico score(i am a mortgage broker) in fact it is on the low side for someone to get an "A" paper loan(the best rates and doesnt have to pay any extra money for the loan) at 700 your are about average, 750 is good and over that is very good. i have been doing this for about 2 years and have only seen 2 ficos at 800 or over
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Elder User
Joined: Jun 2003
Posts: 974
Likes: 1
From: Alhambra CA
At 22 thats a very decent score. A word of advice from someone not much older than you, is just watch those revolving balances. They can affect you adversely, when attempting to purchase a home/car etc. Banks really hate it when a good percentage of the money earned in the household is spent on revolving debt. I'm currently trying to purchase a home and I've learned tons of information.
Munkey we're young, but I've learned that we can never be too young to have great credit. It always is beneficial. Most jobs check credit before hiring, home loans, car notes, etc. It's amazing what 50-100 points on your Fico score can do. Good Luck to you.
Munkey we're young, but I've learned that we can never be too young to have great credit. It always is beneficial. Most jobs check credit before hiring, home loans, car notes, etc. It's amazing what 50-100 points on your Fico score can do. Good Luck to you.
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
Average score today is 678, 720 and above is the magic number that will cause most banks to generate an automatic approval. 662 will mean you'll pay a slightly higher rate, but not outrageously high. Follow the advice mentioned here to help get your score higher. Highest I've ever seen is 825-830, which is incredibly-good credit for any one.
Senior User
Joined: Dec 2001
Posts: 249
Likes: 0
From: Jacksonville, FL
662 is a good start, but work on getting it above 700. I went from 710 to 745 in 6 months by paying off all my major credit cards (but not closing them) and paying off and closing the few revolving accounts I had. I'm quite proud of my credit score(s).
Post Fiend
Joined: Aug 2002
Posts: 5,324
Likes: 1
From: Denton,TX
There's a fine line between having enough credit extended to you and not enough (no balances). 662 is OK but it's not great. To raise your score your first priority should be paying off your outstanding balances. From what I've been told by past mortgage companies, they like to see at least 3 open accounts in good standing. I suggest you maintain at least 3 active accounts whether it be a car loan or credit card. Time also helps. The longer you have an account in good standing the better. Also, prior loans you take out and pay off will add to your score. Just make sure not to open too many accounts. You might also consider asking your credit card companies to raise your credit limit. If you have a card with a $5000 limit with no balance that does less for your credit score than if you had the same card with a $10000 limit. Just make sure not to acquire too many credit cards.
Government Teat-sucker
Joined: Oct 2003
Posts: 9,748
Likes: 1
From: Virginia Beach
[QUOTE=AbFitch Ford Boy]A word of caution on closing accounts you don't need. If you close an account that has no balance but an available credit of say $5000, this will actually lower your credit score. Two things here to consider, #1 : any kind of activity such as closing/opening an account will affect your credit score. #2 By closing an account, you reduce your overrall credit availability and increase your debt to credit ratio, it will lower your credit score.
QUOTE]
I gotta raise the flag on this. How does it reduce your debt to credit ratio if you have less debt? Maybe I'm just not reading this correctly, could you clarify it? I recently closed an account and the lady at the company tried to feed me the line about having a card makes your credit look better. I said to her, "No, it doesn't," and she quietly agreed.
BTW, is FICO score the same as my Beacon score? 5 years after a bankruptcy, my score is finally at about 680, and I still can't get a great interest rate. My wife's score is about 750, so we put everything in her name. All I have in my name is the cell phone. Do you think I should get another small card? Or just have my name put on the wife's accounts?
QUOTE]
I gotta raise the flag on this. How does it reduce your debt to credit ratio if you have less debt? Maybe I'm just not reading this correctly, could you clarify it? I recently closed an account and the lady at the company tried to feed me the line about having a card makes your credit look better. I said to her, "No, it doesn't," and she quietly agreed.
BTW, is FICO score the same as my Beacon score? 5 years after a bankruptcy, my score is finally at about 680, and I still can't get a great interest rate. My wife's score is about 750, so we put everything in her name. All I have in my name is the cell phone. Do you think I should get another small card? Or just have my name put on the wife's accounts?
Post Fiend
Joined: Aug 2002
Posts: 5,324
Likes: 1
From: Denton,TX
I gotta raise the flag on this. How does it reduce your debt to credit ratio if you have less debt? Maybe I'm just not reading this correctly, could you clarify it? I recently closed an account and the lady at the company tried to feed me the line about having a card makes your credit look better. I said to her, "No, it doesn't," and she quietly agreed.
Government Teat-sucker
Joined: Oct 2003
Posts: 9,748
Likes: 1
From: Virginia Beach
This is the part I'm stuck on:
#1 I agree with, as activity could affect it either positively or negatively.
But #2, I don't get. Are you saying that if you have a $3000 balance on a $5000 card, instead of having a $3000 balance on a $10,000 card, you're worse off? (60% of $5g instead of 30% of $10G?) How does this lower your score?
Two things here to consider, #1 : any kind of activity such as closing/opening an account will affect your credit score. #2 By closing an account, you reduce your overrall credit availability and increase your debt to credit ratio, it will lower your credit score.
But #2, I don't get. Are you saying that if you have a $3000 balance on a $5000 card, instead of having a $3000 balance on a $10,000 card, you're worse off? (60% of $5g instead of 30% of $10G?) How does this lower your score?