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Old 01-03-2013, 03:31 PM
 
132 posts, read 75,034 times
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They say one aspect of a high FICO score is a diversity of credit. So does that mean if you are playing the game of "who can get the highest FICO score" you are going to lose unless there is a mortgage, car payment, and store and gasoline CHARGE cards in your credit report? Right now I only have credit cards, does that mean that I will only achieve a moderate FICO score even if I pay all my bills on time?
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Old 01-03-2013, 04:01 PM
 
Location: Keosauqua, Iowa
6,434 posts, read 7,484,642 times
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I've seen people with nothing but a car loan with an 800. I don't think diversity is weighted as heavily as some people claim.

Actually, I'm not sure if anybody really knows what it's based on. I'm fooled by it on a regular basis. Or was, back when I worked in finance.
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Old 01-03-2013, 04:39 PM
 
Location: SF Bay Area
801 posts, read 1,469,994 times
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Yes. Until I bought a car a couple of years ago, I only had credit cards for the previous ten years and had a FICO score in the 810's (small variations depending on the reporting agency).
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Old 01-03-2013, 04:44 PM
 
Location: southwestern PA... where the nest is now empty!
13,040 posts, read 16,326,445 times
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Quote:
Originally Posted by duster1979 View Post
I've seen people with nothing but a car loan with an 800. I don't think diversity is weighted as heavily as some people claim.

Actually, I'm not sure if anybody really knows what it's based on.
I'm fooled by it on a regular basis. Or was, back when I worked in finance.
The my FICO site tells you what they take into account....

FICO Credit Score Chart: How credit scores are calculated

But note this:
"For particular groups—for example, people who have not been using credit long—the relative importance of these categories may be different."
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Old 01-04-2013, 03:35 AM
 
132 posts, read 75,034 times
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Quote:
Originally Posted by Pitt Chick View Post
The my FICO site tells you what they take into account....

FICO Credit Score Chart: How credit scores are calculated

But note this:
"For particular groups—for example, people who have not been using credit long—the relative importance of these categories may be different."
Good information. It appears that the mix of credit is about ten percent of your score so if I only had credit cards and nothing else I could lose up to 85 points (10% of 850 points). This could put me below the 780 score needed for the best loan rates.
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Old 01-04-2013, 06:03 AM
 
Location: Wake Forest, NC
835 posts, read 2,529,062 times
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The 10% for type of credit used is not so much for different types of traditional credit-mortgages, car loans, or credit cards. It doesn't like the buy here pay here types of credit and even then you wouldn't lose all 85 or so points.

Sure a little bit of everything is good but don't go out and buy a car to get 25 points.
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Old 01-04-2013, 07:07 AM
 
Location: Upper East, NY
1,144 posts, read 1,542,711 times
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thought 720-740 was need for best mortgage rates.

number of accounts open, average length they have been open seem to play a part if you only have credit cards.
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Old 01-04-2013, 08:56 AM
 
348 posts, read 213,735 times
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From what I understand there is not an exact formula to conclude a credit score. A lot of lenders are looking at more than just score to make a decision.
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Old 01-04-2013, 10:24 AM
 
Location: southwestern PA... where the nest is now empty!
13,040 posts, read 16,326,445 times
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There IS a formula... it is the link above!
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Old 01-04-2013, 10:41 AM
 
Location: Wake Forest, NC
835 posts, read 2,529,062 times
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Quote:
Originally Posted by crescent22 View Post
thought 720-740 was need for best mortgage rates.

number of accounts open, average length they have been open seem to play a part if you only have credit cards.

It was 680 at one point in time but is now 740 for Fannie/Freddie. Some lender will even improve slightly on these rates if over 760 but that is just them willing to cut their profit for what they believe will be a high preforming loan(little risk of default).

Average length can only refer to revovling credit as any installment credit has a definitive start and end date.
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