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Speaking from my own experience, Yes. Mine is over 800, and I have had nothing but credit card debts in the past 25 years. With, of course, the unavoidable medical bills, utility bills, etc. In other words, no car financing or house purchase or retail charge accounts or personal loans.
There is a formula but that's not the exact one. I visit that website all the time. They even tell you that this is what they believe it to be or close to it. The reason is, only the creator of the formula knows exactly how it works. If the consumers knew then they would know how to manipulate the system. Also, different agencies use different formulas. Transunion uses a few different ones just by them selves. Also, it's a algorithm not just simple formula. It is very very complicated. There are so many varibles. It's not as simple as the link makes it out to be.
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."
It tells you what they take into account, and how they are weighted; that's pretty common knowledge. But from experience I know that it doesn't seem to be applied the same every time. As I said, I've seen people come with an 800+ credit score who, according to the pie chart, should be at no more than a 765 due to a lack of diversity. And not just those with a short credit history.
Quote:
Originally Posted by proverbs23and7
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.
Local lenders tend to look more at issues like the size of your down payment and your references. National lenders are mostly by the numbers. And more and more are using bureau scores (FAKOS) these days rather than the true FICO.
Quote:
Originally Posted by Pitt Chick
There IS a formula... it is the link above!
I don't see a formula, only the pie chart. And while it tells, for instance, that 35% of the score is based on the payment history, the information in the link is very vague about what goes into determining how much of that 35% you're going to get. In other words, sure a perfect history should get you the whole enchilada - in other words, 297.5 points, or 35% of 850 - but it doesn't say how much a late payment (or two, or three, or 50) affects things.
If there is a true calculation there that I'm missing, please post a direct link. I'd love to see it.
It tells you what they take into account, and how they are weighted; that's pretty common knowledge. But from experience I know that it doesn't seem to be applied the same every time. As I said, I've seen people come with an 800+ credit score who, according to the pie chart, should be at no more than a 765 due to a lack of diversity. And not just those with a short credit history.
Local lenders tend to look more at issues like the size of your down payment and your references. National lenders are mostly by the numbers. And more and more are using bureau scores (FAKOS) these days rather than the true FICO.
I don't see a formula, only the pie chart. And while it tells, for instance, that 35% of the score is based on the payment history, the information in the link is very vague about what goes into determining how much of that 35% you're going to get. In other words, sure a perfect history should get you the whole enchilada - in other words, 297.5 points, or 35% of 850 - but it doesn't say how much a late payment (or two, or three, or 50) affects things.
If there is a true calculation there that I'm missing, please post a direct link. I'd love to see it.
Only FICO knows the true calculation. I've heard from people in the finance buisness that FICO won't even tell them how they come up with the score and they are buying the service from FICO.
The exact algorithim is like the formula for Coca-Cola. No one knows it except the people that need to know. This is all the company(Fair Isaac Corporation) has to stay in business. They have released the contributing factors and generally how they are weighted but never the exact formula.
If you want a high score there are couple of basic rules:
Pay your bills on time
Don't overextend yourself
Don't let a medical bill or utility from a previous address get missed and go to collections
Do these things and you won't care about manipulaitng the formula as your scores will always be high.
My credit score was 740 the last time I checked....I have 8 CCs with balances but not maxed out, 1 car payment, 2 student loans, no mortgage.
Closing accounts esp credit cards hurts your score....and DO NOT ALLOW CREDIT Inquiries.
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