Predicting a FICO score
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Fleet Mechanic
Joined: Feb 2004
Posts: 1,816
Likes: 3
From: River Valley AR
Predicting a FICO score
Here's a question that's been bugging me for a while. Is there any way that a person can predict what their FICO score will be at a future date?
I found an opportunity to get in on a good deal in about a year from now, but it's going to take some credit to do it.
In that year of waiting, I need to beef up my FICO score. The only problem is that no one can tell me exactly what I need to do to get to that point. A FICO score is based on a mathematical formula, correct? If that's so then shouldn't there be a way to predict what your score will be if you take certain actions?
I know that I want to build my score, but how much do I need to do in order to meet my goal? I have not been able to find any info on this subject, hoping one of you can help.
I found an opportunity to get in on a good deal in about a year from now, but it's going to take some credit to do it.
In that year of waiting, I need to beef up my FICO score. The only problem is that no one can tell me exactly what I need to do to get to that point. A FICO score is based on a mathematical formula, correct? If that's so then shouldn't there be a way to predict what your score will be if you take certain actions?
I know that I want to build my score, but how much do I need to do in order to meet my goal? I have not been able to find any info on this subject, hoping one of you can help.
Moderator
Joined: May 2007
Posts: 158,726
Likes: 12,101
From: Greenfield, MA
Try paying all your bills on time...paying down balances...not closing accounts...amongst other things. In general...use credit responsibly...it's not a right...it's a privilege. Good luck!!!
Thread Starter
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Fleet Mechanic
Joined: Feb 2004
Posts: 1,816
Likes: 3
From: River Valley AR
Thanks and I understand all this, and I owe nothing to no-one. I am completely debt free. Everything I have is paid for. I have utility bills and that's it. I have a little money in the bank of bodabdan.
Generally I don't buy it if I can't pay cash for it. I don't have any revolving accounts, my only plastic is a debit card, I have no debt, judgements. leins, delinquencies, etc.
The only loan I have had was a 5 figure cash-secured loan for 4 years from my bank, but I paid it off in 4 months so it doesn't count towards my FICO. I've never needed credit so I don't have any. In order to qualify for the loan I must go from a credit score of "N/A" to a score of 620.
Is this even possible?
If so then how much credit activity do I need between now and then?
Generally I don't buy it if I can't pay cash for it. I don't have any revolving accounts, my only plastic is a debit card, I have no debt, judgements. leins, delinquencies, etc.
The only loan I have had was a 5 figure cash-secured loan for 4 years from my bank, but I paid it off in 4 months so it doesn't count towards my FICO. I've never needed credit so I don't have any. In order to qualify for the loan I must go from a credit score of "N/A" to a score of 620.
Is this even possible?
If so then how much credit activity do I need between now and then?
Cargo Master
Joined: Apr 2003
Posts: 3,476
Likes: 224
From: Frequently frozen MN
Liz Pullen Weston (or something like that ) writes about credit scores all of the time, and she sometimes gives details of the formulas. (BTW, they just changed).
A banker told me that I could sign up for their id theft program and get the scores from all 3 agecies. She said that I could get this during the first free month and immediately cancel. If you could do something like that, at least you'd know where you're starting from.
Credit scores do pee me off because they seem to be based on some odd and arbitrary criteria.
A banker told me that I could sign up for their id theft program and get the scores from all 3 agecies. She said that I could get this during the first free month and immediately cancel. If you could do something like that, at least you'd know where you're starting from.
Credit scores do pee me off because they seem to be based on some odd and arbitrary criteria.
Hotshot
Joined: Feb 2003
Posts: 11,537
Likes: 27
From: Long Beach, Ms.
Thanks and I understand all this, and I owe nothing to no-one. I am completely debt free. Everything I have is paid for. I have utility bills and that's it. I have a little money in the bank of bodabdan.
Generally I don't buy it if I can't pay cash for it. I don't have any revolving accounts, my only plastic is a debit card, I have no debt, judgements. leins, delinquencies, etc.
The only loan I have had was a 5 figure cash-secured loan for 4 years from my bank, but I paid it off in 4 months so it doesn't count towards my FICO. I've never needed credit so I don't have any. In order to qualify for the loan I must go from a credit score of "N/A" to a score of 620.
Is this even possible?
If so then how much credit activity do I need between now and then?
Generally I don't buy it if I can't pay cash for it. I don't have any revolving accounts, my only plastic is a debit card, I have no debt, judgements. leins, delinquencies, etc.
The only loan I have had was a 5 figure cash-secured loan for 4 years from my bank, but I paid it off in 4 months so it doesn't count towards my FICO. I've never needed credit so I don't have any. In order to qualify for the loan I must go from a credit score of "N/A" to a score of 620.
Is this even possible?
If so then how much credit activity do I need between now and then?
http://banking.about.com/od/loans/a/buildcredit.htm
Elder User
Joined: Nov 2003
Posts: 963
Likes: 1
From: wichita kansas
Talk to your bank and see what you can do to bring your score up. In today's world a credit score is important not only for getting a loan, but also for sometimes a job or insurance. I'm kind of in the same boat that you are in that I've paid everything off and don't buy unless I have the money. I do use my credit card to buy stuff, but pay it off immediately, usually check the balance two or three times a month and pay it off.
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Hotshot
Joined: Jan 2004
Posts: 19,768
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From: St Louis
Spend a couple of bucks ($15.95) and buy your FICO score/report directly from FICO. www.myfico.com
You can get your regular credit bureau reports for free every year under federal law, but they do not include the FICO score. www.annualcreditreport.com
You can get your regular credit bureau reports for free every year under federal law, but they do not include the FICO score. www.annualcreditreport.com
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Posting Guru
Joined: May 2003
Posts: 1,362
Likes: 2
From: Juneau, ALASKA
Apply for a credit card you know you will get. Get one from your bank or Store, Gas, Org you belong to what ever use it put at least $100 on it and pay it off in total every month. Search online there are lots of things about building credit. Do you have a checking account? If so you have a credit history. Even your utility bills factor into it they are accounts you pay ever month. Things like your car insurance, job, money you have in savings, all factor into your score.
Talking to your bank is a great idea they often offer free services like this.
Talking to your bank is a great idea they often offer free services like this.
Hotshot
Joined: Dec 2003
Posts: 18,423
Likes: 9
From: iowa
Wagion is right, apply for a credit card, the thing is you don't even actually have to use it just having will improve your credit score. Like mentioned zero credit = low score. I would get it, buy 1 tank of gas, then immediatly pay the card off when the bill comes in, do the same thing the next month etc. This WILL help you also.
10yrs ago I had to declare a bankruptcy due to a real bad wife and divorce, now I have a FICO score over 760 by being smart with credit. Even with the bankruptcy on my record I was able to get my score back over 700 in 5yrs.
10yrs ago I had to declare a bankruptcy due to a real bad wife and divorce, now I have a FICO score over 760 by being smart with credit. Even with the bankruptcy on my record I was able to get my score back over 700 in 5yrs.
Post Fiend
Joined: Jan 2006
Posts: 20,589
Likes: 2
From: Charlotte, NC
Talk to your bank and see what you can do to bring your score up. In today's world a credit score is important not only for getting a loan, but also for sometimes a job or insurance. I'm kind of in the same boat that you are in that I've paid everything off and don't buy unless I have the money. I do use my credit card to buy stuff, but pay it off immediately, usually check the balance two or three times a month and pay it off.
The OP mentioned a score of 'N/A'.....For those who have never dealt with credit......
Would a score of 'N/A' keep one from getting that job? If so, then this is a travesty.
Let's say you have a 30-year old......Good job....Cash in the bank.....Paid cash for everything and just doesn't want a debt-load hanging over his or her head.....Now to ME, this person is even more responsible than someone who uses a lot of credit, but pays off that credit in time....This person likely has utility bills, cable, etc....so there is SOME payment history...just not revolving credit.
Now. Who is in a better position in a job loss or layoff? The person who has a lot of debt but a kick-*** payment history? Or the person with no debt....lots of cash...and much less of a payment history?
Note: A big part of the lack of 'cash' for most folks in recent history is that so much of their cash was used to pay for credit. Less credit---more cash.
In some ways, the system is ***-backwards.
Flame-away!
Thread Starter
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Fleet Mechanic
Joined: Feb 2004
Posts: 1,816
Likes: 3
From: River Valley AR
I wonder.........
The OP mentioned a score of 'N/A'.....For those who have never dealt with credit......
Would a score of 'N/A' keep one from getting that job? If so, then this is a travesty.
Let's say you have a 30-year old......Good job....Cash in the bank.....Paid cash for everything and just doesn't want a debt-load hanging over his or her head.....Now to ME, this person is even more responsible than someone who uses a lot of credit, but pays off that credit in time....This person likely has utility bills, cable, etc....so there is SOME payment history...just not revolving credit.
Now. Who is in a better position in a job loss or layoff? The person who has a lot of debt but a kick-*** payment history? Or the person with no debt....lots of cash...and much less of a payment history?
Note: A big part of the lack of 'cash' for most folks in recent history is that so much of their cash was used to pay for credit. Less credit---more cash.
In some ways, the system is ***-backwards.
Flame-away!
The OP mentioned a score of 'N/A'.....For those who have never dealt with credit......
Would a score of 'N/A' keep one from getting that job? If so, then this is a travesty.
Let's say you have a 30-year old......Good job....Cash in the bank.....Paid cash for everything and just doesn't want a debt-load hanging over his or her head.....Now to ME, this person is even more responsible than someone who uses a lot of credit, but pays off that credit in time....This person likely has utility bills, cable, etc....so there is SOME payment history...just not revolving credit.
Now. Who is in a better position in a job loss or layoff? The person who has a lot of debt but a kick-*** payment history? Or the person with no debt....lots of cash...and much less of a payment history?
Note: A big part of the lack of 'cash' for most folks in recent history is that so much of their cash was used to pay for credit. Less credit---more cash.
In some ways, the system is ***-backwards.
Flame-away!
Thanks man, this is just about exactly where I am coming from. And you are correct, my FICO score is not a number, it is 2 letters and a forward slash-N/A.
I can't think of many people that I would trade places with though. I thought that by not abusing credit and living within my means I would demonstrate responsibility. Wrong.
Fact of the matter is that I have not been playing their game, and now I have to pay up if I want to play.
As for what is actually on my credit report, I get no recognition for any of my utilities, insurance, etc. I also cannot use my paid-off secured loan to help me because I paid it off too soon and did not let it drag on. (poor advice from my bank but that's another story)
This has been very frustrating for me, to the point that I think I might just pass on this opportunity.
It sure makes me wonder though, with so many people having financial troubles today, would we have gone through this economic collapse if everyone paid cash and lived within their means?
Post Fiend
Joined: Jan 2006
Posts: 20,589
Likes: 2
From: Charlotte, NC
There should be a good balance of both, but recently (10, 20 years or more), it's swung more to the 'credit' side.
I mean just look at the 'official' reaction to the Sept 2008 economic meltdown. Start injecting billions, or trillions in TARP funds to open up the credit markets. Keeping in mind that it was too much credit that got the situation as bad as it was to begin with.
There's 900 other things that could be mentioned....but that would border-on, or delve into areas meant for the 'Club'......I don't want to raise Hurricane Carlene from a Cat 1 to a Cat 5 and have her storm-surge this thread into oblivion.....
Hotshot
Joined: Apr 2004
Posts: 13,589
Likes: 2
From: NW burbs of chicago
a co worker was in the same boat, wanted to buy the house that he was "renting to own" for the previous 10 years, but had a score of N/A...
to get a loan, he had all the utility co's write letters stating his payment history, had his daughters othodontist do the same.
even though he didnt owe anyone, not having credit was a huge PITA
to get a loan, he had all the utility co's write letters stating his payment history, had his daughters othodontist do the same.
even though he didnt owe anyone, not having credit was a huge PITA