A Very Low Fico Score (Long

Discussion in 'Credit Talk' started by Lady Carr, Aug 11, 2000.

  1. Lady Carr

    Lady Carr Guest

    I have an MBNA line of credit with a 23.99% interest rate. I've never missed a payment and I always pay way over the min. They just increased my credit line from 2500 to 5000 last month, so I called today to have my interest rate lowered, and was denied because of my low fico score, which I was told was 582. I have a big problem with that. How is it that someone with extremely bad credit, nothing positive, can have a fico score of 540---then myself on the other hand, has never had any derogatory credit, just lots of accounts (approx.24) and a tons and tons of inquiries within the last 18 months (approx.100) yeah, I know. I get carried away with the online applications. Most of my inquiries are from the same company, where I applied for them like 5 or 6 times. (Sorry so long) The rep. at MBNA told me that each time I apply for an account, that my score is lowered by 3-7 points. So I was wondering if I didn't apply for any more cards in the next year would my score increase dramactically. (3points x 100 inquiries). By the way my debt is around 50,000 dollars. That credit and auto lines. Any suggestions or advice is greatly appreciated. By the way, I'm very inspired by Herb, Barry N, Dogman, & Doris K, to name a few. I wanna be like you when I grow up. :)
    I guess I took the wrong approach and got credit crazy. By the way, I'm in now real danger with my credit, I value it greatly. I still have a lot of questions, just tired of typing.
     
  2. Patm

    Patm Guest

    RE: A Very Low Fico Score (

    the scoring model ONLY considers credit report inquiries for the past 180 days. Just wait 6 months.
     
  3. Kristi- Ca

    Kristi- Ca Guest

    RE: A Very Low Fico Score (

    Fico scoring does work that way. Your good credit is reduced by your amount due (limits in relation to balances) and ALL those inquiries. The INQ's will come off in two years but if you question them to the lender and they cannot find your turn down app (which most do not keep) then it will come off now. Don't even waste your time questioning the INQ's to the bureaus. Go straight to the source, try to remove the ones that are over 90 days and resulted in a denial and stop applying!! Your Click Happy--LOL!

    Have a great day!
    Kristi
    CarreonandAssociates.com

    Lady Carr wrote:
    -------------------------------
    I have an MBNA line of credit with a 23.99% interest rate. I've never missed a payment and I always pay way over the min. They just increased my credit line from 2500 to 5000 last month, so I called today to have my interest rate lowered, and was denied because of my low fico score, which I was told was 582. I have a big problem with that. How is it that someone with extremely bad credit, nothing positive, can have a fico score of 540---then myself on the other hand, has never had any derogatory credit, just lots of accounts (approx.24) and a tons and tons of inquiries within the last 18 months (approx.100) yeah, I know. I get carried away with the online applications. Most of my inquiries are from the same company, where I applied for them like 5 or 6 times. (Sorry so long) The rep. at MBNA told me that each time I apply for an account, that my score is lowered by 3-7 points. So I was wondering if I didn't apply for any more cards in the next year would my score increase dramactically....
     
  4. Michael

    Michael Guest

    RE: A Very Low Fico Score (

    Pat is correct in that the inquiries will be counted against you for the next 6 months only. Don't apply for any more credit because you won't get it anyway! Most credit grantors only tolerate 2-3 inquires in the last 6 months!

    Kristi, mentions 2 years for the inquiries. The inquiries will stay on the credit bureau for 2 years, but it is not in the FICO score after 6 months.

    Kristi is right about your debt also affecting your score. Most creditors look at BOTH debt to income and also credit to income.

    In all honesty I think you probably will be looking at a future of high interest rates until you increse your earnings, and decrease the amount owed on your credit!

    TO ALL READING THIS LET THIS BE AN EXAMPLE OF HOW NOT TO GO ABOUT BUILDING CREDIT!
     
  5. Kristi- Ca

    Kristi- Ca Guest

    RE: A Very Low Fico Score (

    Michael is correct. They only affect the actual score for several months but banks and credit unions still see the long list of Inquiries for the remaining two years and can presume that you are desperate for cash. Not all lenders go strictly by desktop underwriting. Many look at all the INQ's, All the previous addresses (looks like you move alot) and even ssn variations. All of this coupled can be a big fat turn down even with a good score. Especially if a human is reading your credit patterns.

    Michael wrote:
    -------------------------------
    Pat is correct in that the inquiries will be counted against you for the next 6 months only. Don't apply for any more credit because you won't get it anyway! Most credit grantors only tolerate 2-3 inquires in the last 6 months!

    Kristi, mentions 2 years for the inquiries. The inquiries will stay on the credit bureau for 2 years, but it is not in the FICO score after 6 months.

    Kristi is right about your debt also affecting your score. Most creditors look at BOTH debt to income and also credit to income.

    In all honesty I think you probably will be looking at a future of high interest rates until you increse your earnings, and decrease the amount owed on your credit!

    TO ALL READING THIS LET THIS BE AN EXAMPLE OF HOW NOT TO GO ABOUT BUILDING CREDIT!
     
  6. T

    T Guest

    RE: A Very Low Fico Score (

    The range of FICO is between 300 to 900.Inquiry and new account represent 10% of total FICO score.No matter how many inquires you have,worst could happen is you lost 90 points.
     
  7. LadyCarr

    LadyCarr Guest

    RE: A Very Low Fico Score (

    Thanks for all of your input.
     
  8. Stormie

    Stormie Guest

    RE: A Very Low Fico Score (

    Kristi how would one go about contacting the lender, as mentioned previously to remove those INO's ?
     
  9. Kristi- Ca

    Kristi- Ca Guest

    RE: A Very Low Fico Score (

    Just pull the lenders addresses off of the credit reports and send a very simple letter to each one that you are questioning. Each credit report will have all the lenders addresses listed.
    The letter can be as simple as: I do not recall authorizing this or can you please provide me with proof.

    Stormie wrote:
    -------------------------------
    Kristi how would one go about contacting the lender, as mentioned previously to remove those INO's ?
     
  10. Pat

    Pat Guest

    RE: A Very Low Fico Score (

    COULD YOU TELL US WHAT % THE OTHER ISSUES ARE!!
     
  11. T

    T Guest

    RE: A Very Low Fico Score (

    Pat, payment history represents 35% of FICO score,amount owed 30%,length of credit history 15%,new credit 10%,types of credit in use 10%.IF you want to more go to www.FairISAAC.COM.
     
  12. me

    me Well-Known Member

    RE: A Very Low Fico Score (

    My equifax report does not show company addresses.

    How would I find out the address to mail the letter to?
     
  13. Kristi- Ca

    Kristi- Ca Guest

    RE: A Very Low Fico Score (

    Ask Equifax to provide you with a list of the creditors.Experian always does but Equifax is a hit or miss. Also, you can get a copy from a lender, or online. Just be sure before you order online that the site has a section telling you what info you will get and look at their sample reports.

    me wrote:
    -------------------------------
    My equifax report does not show company addresses.

    How would I find out the address to mail the letter to?
     
  14. Michael

    Michael Guest

    RE: Inquiries on FICO Scoring

    T theoretically you are correct, practically you are wrong! While it seems that only 10 % can be chopped off a FICO score in fact banks and other creditors are real conservative when it comes to inquiries.

    One of my clients just got turned down for an AMEX with only 2 inquiries. The rep was suprised as he saw the applicant scored high in every other area and even called the credit dept. to check again!

    Keep the inquiries to a minimum and see your approval rate increase!
     

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