Just got my credit score

I finally broke down and ordered my credit score from Experian.  I had been checking my credit report every year but never had checked my credit score.  I was pleased to see it was 798, which is pretty good, but I was currious why it wasn't higher.  I've never missed or been late on a payment, and am currently totally debt free.  What do you have to do to get 850? 

Fortunately Experian had the answer.  The #1 detriment to my credit score.  Lack of credit history!  I'm 28 and have about 10 years worth of flawless credit, however according to Experian that's below the average for 'high achievers' which is 17-19 years.  So basically I'm being punished for being too young.  Nice..  I understand they want a good track record but isn't 10 years enough?  At least it's a problem that should correct itself in time.

Jeremy, 798 is an awesome score!  I wonder if anyone has ever reached the magic 850?  It's pretty amazing that 10 years of perfect credit aren't enough to get the top score.

Jeremy,

This may sound bassackwards but take a look at your credit to debt ratio. For example, if you have 10K in credit but 0 debt, you won't raise your score. On the other hand, if you have 10K in credit and have 1K in debt, you'll raise your score.

Don't let your debt ratio as it is called get over 20%. I am not saying incur debt just to raise your score. I'm saying if you have the cash to pay by the due date, put 10% of your credit on charge. Even if you pay it off on time, you won't be penalized but helped as far as your credit score.

It is a screwy system that is undergoing revision which won't be finished until March or so of 2008. In the menatime, having an active account with a balance raises your score. The computer model looks at it as you are using your credit wisely and like a responsible money manager.

That's the best explanation I can give. BTW, I have never seen anyone with an 850. I did see a 805 when I was an active lender.

That's great!!

One of these days, I will get the courage to get my own credit score, although I really am just too scared to get it. Although, I have a feeling that mine will be quite lower then yours, although that is a great job! It's a great score! You should be pleased.

 

I read someplace that there really is no difference as far as interest rates on credit you may get or in how you are viewed as a consumer when your score goes above 780 (I think that was the number).  So basically, people with scores of 780 and people with scores of 850 are viewed the same and would get the same interest rates.

I'm not sure how accurate that is, but it makes sense- especially since like you said, Jeremy, you have a perfect credit history and you're just being penalized for being young and deciding to pay cash for things instead of borrowing.

I'm so jealous.

:)

That reminds me of people being unable to secure a loan because they have never had a loan.
Your credit score is wonderful. Of course, I say this not knowing exactly what my own credit score is...

Oh how I wish I could have a credit score like that... It is wacky the way things work though I think with a track record like yours you'd be maxed out on your score. But none-the-less lots of people would love to even be close to that. I have a good friend who's score doesn't even come close to 400 ouchy.

I've been watching my scores very closely for the last year and the things that affect my score, positive and negative...

Using a couple of cards per month and letting them report SMALL balances, I mean around $100, is good for my score.  The reason is having recent responsible use of credit .

Having one card report more than $2000 (I bought a mattress set) lowered my 806 Equifax score by 8 points.  My total available credit on 7 cards is $75k.

Having more than 2 cards report a balance in any given month was bad for my score. 

Using a card that I have not used in 6 months was bad for my score.  The reason given was recent use of an unused card could indicate a need for credit.  I now make sure that I rotate my cards and use 1 or 2 of them each month for incidental, even just $10, purchases.  Also, don't give the credit card company a reason to cancel an unused card.

Keeping my total utilization under 3% is good for my score.

Applying for a new credit card and having the inquiry show up on my report lowered Experian by 5 points.