Perfect Mix of credit; credit

RE: Perfect Mix of credit; cre

Well last summer the Fair Isaac posted a bunch of score factors that contradict most of what is mentioned on that site. That's why I think that FTC presentation from 1 1/2 years ago was just a bunch of smoke and mirrors having nothing to do with the general credit score (FICO).

 

RE: Perfect Mix of credit; cre

Erik wrote:
"Fair Isaac posted a bunch of score factors that contradict most of what is mentioned on that site."


Do you have anything to support that argument?


Saar

 

RE: Perfect Mix of credit; cre

My response to the "smoke and mirrors" theory is posted here:

http://board.creditnet.com/read.php3?num=1&id=33108&thread=32983


Saar

 

RE: Perfect Mix of credit; cre

Fair Isaac has redesigned their credit scoring explanation of their site in the last couple weeks. I definitely remembering reading there that age was not a factor in determining your FICO score. It still says:
"Your FICO score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting."

That slide show seems to imply that the credit score does include things like income. That is a contradiction which leads me to doubt everything else in that slide show. Slide #8 indicates that if you have spend 2 years on the job that will get you 19 points. So the question that comes to me is 19 points for what scoring model? Certainly not the FICO score which is what I'm interested in.

 

RE: Perfect Mix of credit; cre

Age is a factor. Either age or date of birth are asked for in every credit application and appear on every credit report.


"Slide #8 indicates that if you have spend 2 years on the job that will get you 19 points. So the question that comes to me is 19 points for what scoring model? Certainly not the FICO score"


You're making the exact mistake I was referring to, when I said:


"2. A credit file showing a dept store card yields better results (27 pts.) than
one w/o it (16 pts). Don't confuse the points shown here with the 300-900 scale,
since the latter presumes standardization and the former is pre-standardized."

That is to say, statistical models have "raw data" score, which is different from the standardized form. The standardization process takes the raw score (ex. scaled 0-240) and turns it into another scale (ex. 300-900). But this is still good ol' FICO.


Saar

 

RE: Perfect Mix of credit; cre

So you feel that Age, Income, and Time of employment are facors in calculating the FICO score? I won't try to convince you otherwise but I don't agree with that.

 

RE: Perfect Mix of credit; cre

Actually income is part of the secondary score calculated for the lender at the time of application, since it does not appaer on your report. But it certainly influences credit decision making in 2 ways: First, it lets the creditor determine how high your initial credit limit would be (that's why pre-approvals normally say "up to $XXX" - they don't know your exact income until you actually apply). Second, it allows the calculation of your "income- to- available credit" ratio, which serves as a warning to potential creditors if it's too high.


Saar

 

RE: Perfect Mix of credit; cre

Store card=revolving account=credit card,my friend has six trade lines (all credit cards ) ,her FICO score is 795.