ED need clearification on FICO - Posted by SC

Posted by Tim on March 18, 2001 at 14:40:58:

Here’s how the formula works…Everytime a lender pulls your credit bureau it draws 5 points from your score. If you goto a car dealer and they shop you among several banks chances are, they pull your bureau, and so do the banks. Ex. shopped at 4 banks and the dealer would equal 5 inquiries x 5points ea =25 would come off your bureau.

The rule of thumb is that when you begin your credit history it starts at 600 points. Depending how you make your payments it will either go up or down from there. Typically to qualfy for a credit A credit you need a minimum score of 660. Now here’s where it gets weird…there are 3 credit reporting agencies today…TransUnion, equifax, and one other (I can’t think of it right now). They all have their own rating system, but it pretty much follows the above. If your score is above 660 on all of the systems you have nothing to worry about.

There is no way to remove inquiries from your bureau, just time, they will normally fall off after 6-12mos.

The only way to increase your score is time and timely payments…

Hope this helps!

Tim (Milw,Wi)
Certified Mortgage Broker

ED need clearification on FICO - Posted by SC

Posted by SC on March 18, 2001 at 11:41:22:

Good morning ED
I need help uinderstanding the Fair Isac scores. is it called FICA or FICO?
last month I had my credit run by a broker and he told me I had 725 score. A little later I got a credit card ( for repairs on future property purchas. I also had another lender run credit because I’m getting a LOC and Refi. When I had the credit checked last my score was 705. with that last lender checking credit I’m sure it is down to the high 600s. I havnt yet done the paper work for a LOC nor the Refi so I am concerned that when I chose the program for the LOC my score wont be “A” credit. Then I have to another enqury to look forward to for the refi ( I’m having them done back to back). How can I fix the rates? Can I have the inqury removed? How do I judge my ratings?

Re: ED need clearification on FICO - Posted by Bruce Lawson

Posted by Bruce Lawson on March 18, 2001 at 19:19:14:

The FICO score is simply Fair Issac Company and lenders get your Fico score when they run your report via equifax. Transunion and experian use other scoring companies. If your lender is making a decision totally on your scores without giving consideration to your mortgage history and payment schedules I would look elsewhere, with a good score like yours any lender will not take real estate inquiries too seriously. Mostly all lenders will only count back the unsecured inquiries for 90 days, that is why you need a lender that will take your motives into consideration.


Bruce Lawson