Monday, January 19, 2009

Drats. No Change in My FICO Score

I got my FICO score based upon Equifax's credit report last Friday.

Good news is my FICO scored remained the same since last October. The bad news is it hasn't improved. I was hoping that by reducing my debt by $4,200+ since October, my FICO score would have improved by a point or two. But then again, my credit union ran my credit report last November, which may have affected my score as well.

The biggest cause of my mediocre credit score is past late payments and delinquencies. I anticipate that those items will fall off in 2010. I guess I can only continue to pay my bills timely and bide my time.



Here's what FICO's website had to say about my score:

Key Factors Affecting Your FICO® Score

1. You have a serious delinquency (60 days past due or greater) or a derogatory description on your credit report

The presence of a serious delinquency or a derogatory description is a powerful predictor of future payment risk – people with previous late payments are much more likely to pay late in the future. However, as these items age and fall off of your credit report, their impact on your FICO® score will gradually decrease. Most late payments stay on your report for no more than seven years.

2. You have multiple accounts showing missed payments or derogatory descriptions.
Your FICO® score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions.

What to do about this: If the late payments on your credit report are valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history and these late payments will have less of a negative impact on your score as time passes.

Higher FICO® Scores Save You Money on Loans

Check out how people with higher FICO® scores qualify for lower monthly payments on a $300,000, 30 year fixed-rate mortgage:

Rates accurate as of November 1, 2008

FICO® score APR Monthly payment
See today's rates for other types of loans and loan amounts
760-850 6.303% $1,858
700-759 6.525% $1,901
660-699 6.809% $1,958
620-659 7.619% $2,122
580-619 9.451% $2,512
500-579 10.310% $2,702

11 comments:

Ms. MoneyChat said...

hey shtinky, i wouldn't call your score mediocre. you're making great progress and i'm sure your score will continue to improve if you continue doing what you're doing.

DogAteMyFinances said...

I think the late payments take a long time to fall off. If you care about your score, I just posted a code on my blog to get the Suze package. It's good for a year.

MoneyMateKate said...

Oh wow, I didn't realize that the top range started as "low" as 760 - thought it was either 780 or 800. According to CreditKarma, I'm around 778, so this is good news.

Money Funk said...

Your score is a good solid one.

I am surprised that even with consistant payments it hasn't moved. Hmmm... But those delinquencies can have serious effects on the credit score. I was fortunate to have a majority of mine fall off last year. Lesson Learned. :-)

You are doing great! Keep it up!
And yes, football season... seriously, diets are completely off the table! lol!

Sharon Rose said...

Hi there-sorry to hear its not gone up, but you haven't done at all badly either. keep focused my dear, I've waited six long years for my defaults to fall off my credit report (we have a different system to you). Now my credit report looks good, I do hope to keep it that way! Keep up the good work.

DogAteMyFinances said...

I just did mine. I think that free trial is whack.

Miss M said...

Unless you are planning to buy a house or a car soon, stop fretting. Your score isn't bad and it will soon start to rise.

@MMKate - I think prime starts at 730, I've never heard of lenders having a higher tier. I had 730's 740's when I bought my house. But maybe 760 is based on how credit karma scores you?

Shtinkykat said...

Ms. Moneychat: Thanks for your words of encouragement.

Dog: My delinquencies are about 6 years old so I expect them to fall off next year. Whoa! A 63 point differential? WTF? (Sorry for my French. I just drank a glass of wine and I'm a bit loopy. Remember folks. Hicc! Friends don't let friends blog drunk. Hicc!)

MMK: I'm jealous of your score.

Christine: I'm glad to hear that your old negatives fell off. I'm on a buffalo wing diet for the past weekends!

$haron: I'm glad to hear your negatives fell off timely too. Good job!

MissM: Yep. That's what I keep telling myself...

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Cinthia Mull said...

It’s been years since your post. Any updates on your financial standing? Going through your post, I think you are doing relatively well. But yes, you can still improve your credit rating and increase your score. My advice is to follow the tips given to you by FICO. As simple as paying your bills on time can improve your rating and financial standing.[Cinthia Mull]

Matt Listro said...

thanks for this post! can you also teach me how FICO works? thanks!