Credit Score - You Need To Know!!!

[NanaOf11]

Still true?

The key to managing and maintaining your credit is understanding the following five factors that go into calculating your FICO* score.

1. Payment History (35%)
Paying your bills on time is the best thing you can do for your rating.

2. Outstanding Debt (30%)
"If you have credit cards you're close to maxing out, that doesn't help your FICO score," Fair Isaac's Ryan Sjoblad says.

3. Length of Credit (15%)
The longer you've had an account and handled it well, the better.

4. Credit Mix (10%)
Having a mortgage, a car payment, and student loans is preferable to having just credit cards.

5. Searches for Credit (10%)
FICO research has shown that a flurry of simultaneous applications for credit indicates an unsettled, and risky, financial situation.


Source: Are You CREDITWORTHY?
By: Chris Warren

Found this older post, does this still hold true? We should discharge next week & will start to aggressively working on repairing our well dented score. Thanks!

[StartingOver08]

Looks like it is still accurate according to the myfico.com site and its education resource. http://www.myfico.com/creditEducatio...YourScore.aspx

Of course, it only applies to the FICO score. Other scoring models use different scoring criteria.

[JohnnyQ1980]

What's a "Flurry?!"

"FICO research has shown that a flurry of simultaneous applications for credit indicates an unsettled, and risky, financial situation."

I'm considering applying for some lines of credit to rebuild. Last week I applied to Hooters and was declined. I figure 10 or so applications is a "flurry." Surely applying a couple more times in the next week or two couldn't hurt my already bleeding FICO score?

Still, it's good to be here (discharged) instead of where I was at before I even pulled the trigger on my C7.

Just wondering how detrimental it is to get declined two or more times?

[BankruptinNJ]

What's a "Flurry?!"

"FICO research has shown that a flurry of simultaneous applications for credit indicates an unsettled, and risky, financial situation."

I'm considering applying for some lines of credit to rebuild. Last week I applied to Hooters and was declined. I figure 10 or so applications is a "flurry." Surely applying a couple more times in the next week or two couldn't hurt my already bleeding FICO score?

Still, it's good to be here (discharged) instead of where I was at before I even pulled the trigger on my C7.

Just wondering how detrimental it is to get declined two or more times?

Don't apply for too many lines of credit in a short time frame. If you get rejected a couple of times, you should wait before applying again. I've noticed that creditors seem to use six-month intervals as the standard. In other words, space your applications out with six months between them. Don't be too eager for credit, that's what got us into trouble in the first place!

If you get rejected once again, I would suggest just using your debit card and/or cash for awhile. It's soooo easy to get in trouble again. Remember, if you can't afford it, don't buy it. Save your money instead. That's what I'm planning to do. I'm going to wait at least a year after my discharge to apply for any cards, because they are like drugs to me! (I'm a recovering shopaholic).

When I still had very good credit, I applied for 3 credit cards in one month. I was approved for all of them. My credit score dropped 70 points and never recovered! (I was carrying too much debt).

[JohnnyQ1980]

Been there done that...

I had pretty great credit too (FICO 720) before I screwed it up. You forgot the part after getting the three credit cards (Which I've done myself. Practically accepted EVERY card that came my way that sounded half decent...) that you had trouble paying them off. Your 70 points down was the least of your worries.

If we were good with credit, we'd have taken those 70 points on the chin and then built them back up by paying down our balances month by month until they were gone. I'm pretty sure recovery would have occurred then. That being said, I'm not "eager" for credit anymore. I know what will happen if I go back to my old ways:

I guess I'm trying to figure out when this whole bankruptcy thing is *really* over. I'm ready for my "fresh start" but it seems like I have to wait for the "fresh" part for a little bit longer. I'll try one or two more times then wait a while. My troubles could be based on the fact that I've had practically every card imaginable and BK'd them all. If I were them, I'd be leary about giving me an unsecured line too!

Don't apply for too many lines of credit in a short time frame. If you get rejected a couple of times, you should wait before applying again. I've noticed that creditors seem to use six-month intervals as the standard. In other words, space your applications out with six months between them. Don't be too eager for credit, that's what got us into trouble in the first place!

If you get rejected once again, I would suggest just using your debit card and/or cash for awhile. It's soooo easy to get in trouble again. Remember, if you can't afford it, don't buy it. Save your money instead. That's what I'm planning to do. I'm going to wait at least a year after my discharge to apply for any cards, because they are like drugs to me! (I'm a recovering shopaholic).

When I still had very good credit, I applied for 3 credit cards in one month. I was approved for all of them. My credit score dropped 70 points and never recovered! (I was carrying too much debt).

[Jimmy17]

I was nervous about checking my credit score two-months post discharge but, it wasn't as bad as I thought (or is it?).

Trans- 639
Exp- 596
Equi- 635

I'm definitely no expert but, it seems these aren't too bad after BK, right?

It sucks because now, I'm looking at having to move to a new apt but, thanks to you all, I think I know how to handle the landlords and the credit scores aren't TOO low...

[pris72]

Your score through equifax is better than ours right now, but ours was really low prior to filing chapter 7. It has gone from 509 in late June to 579 now. Weird thing is that back in the day when we were 1st establishing any credit we got approved for a brand new car through Ford credit with a 504. Capital one auto finance declined us, so now I am going to try the fresh start loan program and see what they say. If they too say no, I will try again next spring.

[nc73]

I think some of you are confusing Vantage scores with FICO scores. Vantage will seem higher but it is not. (.86 x vantage) equals your FICO score. Sure it's probably off by some but close enough. If your vantage score is 600 for example, your fico would be 516.

[mizzmonick19]

Whats the difference between FAKO scores and FICO scores?
Also I'm thinking about signing up thru truecredit by transunion to monitor all three credit reports and scores...would u recommend them...are they good?

I want to make sure I'm monitoring and paying for the right services...to help me on my pre bk journey

[gretna1970]

I use...

I use Citi Idenity Monitor at (forum won't allow me to add a link)
It's $12.95 a month ($1 for first month) for a 3-in-1 report which includes FICO scores for all 3 and you get to play with the credit analyzer which answers a lot of those nagging questions... what happens to my FICO score if I ... apply for credit, pay off my credit cards, pay on time for 6 months, increase my credit limit, get a auto loan, etc...
I'm very happy with the amount of product I get for my $12.96 a month.
Yes, this my first post. no, I'm not affiliated with Citibank.

[JackBondLove]

The key to managing and maintaining your credit is understanding the following five factors that go into calculating your FICO* score.

1. Payment History (35%)
Paying your bills on time is the best thing you can do for your rating.

2. Outstanding Debt (30%)
"If you have credit cards you're close to maxing out, that doesn't help your FICO score," Fair Isaac's Ryan Sjoblad says.

3. Length of Credit (15%)
The longer you've had an account and handled it well, the better.

4. Credit Mix (10%)
Having a mortgage, a car payment, and student loans is preferable to having just credit cards.

5. Searches for Credit (10%)
FICO research has shown that a flurry of simultaneous applications for credit indicates an unsettled, and risky, financial situation.


Source: Are You CREDITWORTHY?
By: Chris Warren

Before I did the Chapter 7 filing, I had great components of my score in all those categories except ... high outstanding debt, and debt relative to availability.

I think the key ingredient in risk to default is just being way upside down in net finances (including how much that could be lost in the Chapter 7 liquidation), such that a BK relieves so much debt that it eclipses any cost of unavailability or high interest rates for future loans.