FICO Credit Scores Are a Big Fake

Recently, we shared how the FICO 9 Credit Score was figured, and this week we will tell you how FICO Credit Scores are a big fake, says Bernice Ross at INMAN. As you recall FICO Credit Scores run from 300, considered the highest risk of default, to 850, the lowest risk. Did you know that the same credit bureau could report three wildly different numbers for your credit score on the same day? Ross decided to check other sources for her credit score. “Here’s what I found, and it illustrates how bizarre the current credit reporting systems are. (All numbers were reported by Equifax): American Express reported Equifax score: 680rnCreditKarma: 618rnFair Issac (lender-pulled FICO score): 668rnEquifax member: 720rnThat’s more than a 100-point variance from the same credit-reporting bureau! FICO Credit Scores Are a Big FakernMany know that you can get your credit report online. Ross found that there’s a difference between the credit report online and the full credit report. “The full credit report included all of our opened and closed accounts for housing, auto, and revolving credit and also included a comprehensive payment history, including any late pays. rnYou can be on time with no missed payments and still score low. Why? “The percentage of available credit and your on-time payment history are the two biggest determinants of your credit score. Revolving credit is indeed the 800-pound gorilla in this equation. Here’s how they will rank you based upon the percentage of revolving credit that you are using: rnExcellent: 0 to 9 percent rnGood: 10 to 29 percent rnFair: 30 t0 49 percent rnPoor: 50 to 74 percent rnVery poor: 75 percent or more rnTo put this in context, if you have a $10,000 credit line and you’re using $5,001 of it, you have a “poor” ranking. And if you have a balance of $3,000, your ranking is only “fair.” Read More https://goo.gl/xUPmGM Call us today at 571-348-4338