Monday, August 11, 2008

My FICO Score

When I last checked my FICO score in 12/07, it was 699 and labeled “fair”.

FICO's comment about my credit score was:

"This is generally recognized as a good score, and a wide array of loans and credit products will likely be available to you, often at attractive rates. Most lenders will view consumers with a score as high as yours as an acceptable risk. Even so, remember that lenders often incorporate other information into their decision process, in addition to the FICO score, so you might be offered different rates or terms by different lenders. Nonetheless, most lenders agree that scores such as yours indicate an acceptable level of risk."

My score was hammered by 7 negative items and a high balance on my credit cards. A note about the 7 negative items: My private student loans are considered 5 separate installment accounts even though I make one payment to one lender every month. Hence, when I’m late on my private student loans, I get 5 negative marks at once. This really steams me.

cat
The 7 black marks on my FICO scores are:
  • Private Student Loan #1: 4/03: 90 days overdue; Presently current
  • Private Student Loan #2: 4/03: 90 days overdue; Presently current
  • Private Student Loan #3: 4/03: 90 days overdue; Presently current
  • Private Student Loan #4: 4/03: 90 days overdue; Presently current
  • Private Student Loan #5: 4/03: 90 days overdue; Presently current
  • Macy’s: 11/03: 30 days overdue; No current balance
  • Federal Student Loans: 4/03: 90 days overdue; Presently current

    2003 was clearly a bad year for me. What’s done is done. I can’t wait for 5/1/2010, when most of these items will fall off my credit report.

    In the meantime, I’ve eliminated $6,366.50 in credit card debts since 12/07. Additionally, since the passing of time reduces the significance of the late payments, I hope my FICO score will improve to about 720 by year’s end.
  • 1 comments:

    graduatedlearning said...

    Hi, just showed up here from Sallie's Niece's post. I'm not sure what you've done since this post (yeah, I gotta go read some more!), but if you can get a deal by consolidating your student loans, that will help by making your loans just one account, so if you end up missing a payment again, it'll only be one mark against you. I'm pretty sure this is true, not 100% on it, but I'd check it out. Of course, here I am, not consolidating lots of my loans. I'll likely be in the same boat as you if I miss a payment.