Comments on: How is Your Credit Score Determined?

By: Ryan

Ryan — Mon, 26 Sep 2011 16:38:07 +0000

Yes, it should be a fair representation of your credit score. The numbers may vary slightly depending on which bureau’s information is used, but the numbers should generally be close. If there is a large difference in any one bureau then it would be a good idea to look into your credit report worth that bureau to see if any of the information thy have on file is bad.

By: Grace

Grace — Mon, 26 Sep 2011 16:18:06 +0000

I did go to myFICO website and got the score of 784 and it says Equifax FICO score. Is this a fair representative of all three scores?

By: Ryan

Ryan — Mon, 26 Sep 2011 15:43:45 +0000

Grace, The FICO score is a proprietary algorithm known only to the FICO credit company (it is also the most commonly used by lenders, but not the only credit score used by lenders; some may use other scores).

If you need a loan in the near future and feel the need to know your FICO score, then you can go to the myFICO website and buy a copy of your credit score from them – the cost is usually around $15, but be sure to only purchase a one time score if that is the only information you are seeking (some credit score companies offer a credit monitoring service which is a monthly fee; these can be a good service, but only if it is something you feel like you want or need).

If you don’t need a true FICO score in the near future, then you should be fine with the credit scores you have from the three bureaus, with the understanding that your FICO score will be somewhere in the area of the three scores you received.

This is also a good time to review your credit reports from each of the bureaus to ensure the information they contain is accurate.

By: Grace

Grace — Mon, 26 Sep 2011 15:23:23 +0000

I have obtained the score of each of the three bureaus: Equifax, Experian, and TransUnion. Each of them gives me a difference score. Which one is the FICO score? Is it the average of the three scores? Thank you.

By: Ryan

Ryan — Tue, 09 Feb 2010 14:21:34 +0000

Pat, Many credit card companies are lowering credit limits right now as they are trying to reign in the amount of credit they have extended to people. This is more or less happening across the board, so you shouldn’t take it as a sign against you.

Being debt free is a wonderful position to be in, and I would do my best to stay that way. I don’t think it will hurt you if you continue using your credit cards and paying them off every month. As long as you continue having them, they should work favorably on your credit report.

If you are concerned about your score dropping, then check it once a year or so just to make sure it isn’t changing. You should also periodically check your credit report to verify accuracy.

Best of luck!

By: pat

pat — Mon, 08 Feb 2010 12:51:07 +0000

To keep your credit score high is it necessary to have some type of loan payment.
I have heard that paying in cash and carrying no debt can actually hurt your credit score. Is this true? Our credit score last March was 810. I don’t want to loose the good rating. I am contemplating taking out a loan to have the inside of our home painted just to keep our credit history alive. We have the funds to pay for it in cash, but I hate the thought of paying interest to some one.
We have had no car payments for the last 11 years. Our mortgage has been paid off for 1 1/2 years. We paid off our 15 yr mortgage in about 9 yrs. We have 3 credit cards and pay the balance off every month “if” used. The oldest credit card was established in 1994. We pay ALL bills on time (early). I am 53 years old. I don’t want to end up with a bad credit rating as I age because I want to pay in cash. We have always kept our debt low. In fact, because of lack of credit in our 20/30′s we had some difficulty getting credit. I recently recieved a letter from Master Card reducing our limit by $2000 dollars to refect more of our spending habits. I took this as a negative blow to our credit status.
Your thoughts on this subject.

By: Ryan

Ryan — Fri, 08 Aug 2008 22:00:47 +0000

Hello Vishal,

Your score is based on many factors, such as payment history, amounts owed vs. amount of credit available (credit utilization), age of credit history, new credit, and type of credit.

It seems like you make all your payments on time, which means your payment history should be good. You don’t use much of your available credit, which means your utilization is low, and you’ve had your card for a few years, which means your history is established.

I think the fairly high limit is fine as long as you aren’t looking to take out additional large lines of credit. In fact, a higher limit can help your score because it keeps your utilization lower. Based on limited info, your situation shouldn’t affect your score negatively.

By: Vishal

Vishal — Fri, 08 Aug 2008 21:54:40 +0000

Question for you.

If I have a Credit Card with a credit limit > $10,000, but have used it sparingly over the past couple of years (say, not more than $200 annually with punctual payments), does that affect my credit score negatively ?

Thanks !