Credit Reports and Scores

[preciousjeni]

I wasn't sure where to put this, so here it is. With everything that's going on economically, it can't hurt to have a spot for people to get their questions answered or to find resources.

I have potentially dumb questions, but I have to ask. I just purchased a credit report with scores through AMEX's CreditSecure and my scores across the three reporting agencies were the exact same number.

Question 1: Is that possible or did I get scammed?

Also, I applied for a line of credit to serve as overdraft protection on a new checking account. A few days later, I received a letter that said my credit score didn't qualify me for an extension of credit. That's why I purchased the report/scores today. I discovered that my score as of today is 796 (across the board, thus my first question). I thought that was pretty good, but I could be very, very wrong.

Question 2: Is it possible that my score isn't high enough for even a meager line of credit or could it be that this was a form letter that gets sent to everyone?

Help me, financial people!

[Drolefille]

Ok, so first off you probably didn't get scammed if you bought it through AMEX.

Second off you should have been able to get a free credit report following the rejection of your credit for the checking account. That's pretty standard.

Assuming everything accurate on the report, credit's been tightened up a LOT recently and it may be less about your number and more about your history or something along those lines.

[PiKA2001]

1. That is odd. I have credit keeper that checks all three bureaus and my scores are always different but within a five pt range i.e, experian 706, equifax 710, transunion 708. It's my understanding that they all have their own way of calculating the score, so it seems odd to me they are all exactly the same number.

2. You score is about 40 points higher than mine and I'm never declined for credit so maybe that isn't your real credit score. Not to pry, but if you are maxed out credit wise in relation to your income it could explain why you were denied the line of credit.

[preciousjeni]

Originally Posted by Drolefille

Ok, so first off you probably didn't get scammed if you bought it through AMEX.

That's why I went through them, but I've never heard of identical scores. Weird!

Second off you should have been able to get a free credit report following the rejection of your credit for the checking account. That's pretty standard.

I ordered a free report from the bureau they cited as having given the bad score, but I had to purchase the scores separately since they aren't reported. The notification I got from the bank specifically said it was a problem with the "score."

Assuming everything accurate on the report, credit's been tightened up a LOT recently and it may be less about your number and more about your history or something along those lines.

Boooooooooooooooooooooooooooooooo!

THANK YOU!! My paranoia kicked in on this one.

Originally Posted by PiKA2001

2. You score is about 40 points higher than mine and I'm never declined for credit so maybe that isn't your real credit score. Not to pry, but if you are maxed out credit wise in relation to your income it could explain why you were denied the line of credit.

I'm an open book when it comes to this stuff. I've never been maxed out credit-wise. In fact, every year or so - depending on the credit card - I request a limit increase just for the debt-to-credit ratio. Right now, I'm creeping up to $40,000 if you add up all the limits and I pay the cards off completely every statement.

[Munchkin03]

Originally Posted by Drolefille

Assuming everything accurate on the report, credit's been tightened up a LOT recently and it may be less about your number and more about your history or something along those lines.

I would say the same thing. Even people with stellar credit are getting credit lines slashed and cards canceled for inactivity, even if they use the cards regularly and just don't carry balances.

About three months ago, I was a victim of identity theft (someone hacked into a credit card and bought a ton of computer hardware). I used the AMEX CreditSecure about three days after the breach was detected and had three different scores, but all of them were within 10 points of each other. I was a member of the 700 club for all three--if there had been some wild differences, then I would have been concerned.

[preciousjeni]

I just found out that the PLUS score and the FICO score are different things.

PLUS is what you usually get when you order scores from a service that gives you advice on your credit and so forth.

FICO scores come directly from FICO and are what the lenders actually see.

I checked my FICO scores on myFICO (for a pretty hefty fee) and discovered that the scores weren't being reported identically. One was actually 10 points less than the other and the "negatives" were completely different.

[AlphaFrog]

Originally Posted by preciousjeni

I'm an open book when it comes to this stuff. I've never been maxed out credit-wise. In fact, every year or so - depending on the credit card - I request a limit increase just for the debt-to-credit ratio. Right now, I'm creeping up to $40,000 if you add up all the limits and I pay the cards off completely every statement.

I'm not an expert at this, but I'be heard that it isn't always a good idea to increase your credit line like this. Yes, you want a low debt to credit ratio, and you don't USUALLY use all of the credit you have, but it makes banks nervous to lend to you, because while you USUALLY don't use all your credit, there's nothing STOPPING you from using it and all of a sudden owing $40,000 to someone on top of what your credit limit is with whatever bank you are trying to get a line of credit from.

[ree-Xi]

Originally Posted by Drolefille

Ok, so first off you probably didn't get scammed if you bought it through AMEX.

Second off you should have been able to get a free credit report following the rejection of your credit for the checking account. That's pretty standard.

Assuming everything accurate on the report, credit's been tightened up a LOT recently and it may be less about your number and more about your history or something along those lines.

Everyone is entitled to a free credit report from each of the credit bureaus, every 12 months. Some financial advisers recommend spacing the three different reports out over the course of a year so that you can monitor it regularly.

You're also entitled to a free report if you've been denied credit or a few other situations (check the FTC website).

However, in 2004, the FTC allowed the three bureaus to charge a "fair and reasonable fee" (currently around $7-10) to get the actual score from each.

[preciousjeni]

Originally Posted by AlphaFrog

I'm not an expert at this, but I'be heard that it isn't always a good idea to increase your credit line like this. Yes, you want a low debt to credit ratio, and you don't USUALLY use all of the credit you have, but it makes banks nervous to lend to you, because while you USUALLY don't use all your credit, there's nothing STOPPING you from using it and all of a sudden owing $40,000 to someone on top of what your credit limit is with whatever bank you are trying to get a line of credit from.

I'm certainly not an expert either. It's taken me a looooooong time to get back on track credit-wise. I've found that the larger the cushion between my credit limit and my balances, the better. The bureaus actually track the highest balance I've ever had on my cards which must factor into the credit score.

Early last year, I put nearly $20,000 on a card because I was doing work on my house. However, it was paid off at the appropriate time, so the balance was zero. My highest balance on a card (which was a mistake on my part) was $300.

I am extremely particular about my finances and pretty stingy because I used to be in really bad place financially.

[BluPhire]

Originally Posted by preciousjeni

I wasn't sure where to put this, so here it is. With everything that's going on economically, it can't hurt to have a spot for people to get their questions answered or to find resources.

I have potentially dumb questions, but I have to ask. I just purchased a credit report with scores through AMEX's CreditSecure and my scores across the three reporting agencies were the exact same number.

Question 1: Is that possible or did I get scammed?

Also, I applied for a line of credit to serve as overdraft protection on a new checking account. A few days later, I received a letter that said my credit score didn't qualify me for an extension of credit. That's why I purchased the report/scores today. I discovered that my score as of today is 796 (across the board, thus my first question). I thought that was pretty good, but I could be very, very wrong.

Question 2: Is it possible that my score isn't high enough for even a meager line of credit or could it be that this was a form letter that gets sent to everyone?

Help me, financial people!

It is possible that you received a form letter. Same thign happened to me once. I was approved, setup and everything was good to go. Two weeks later I received a letter saying I was declined. Called the bank and they were like we didn't take it away and you still have the line of credit with us. Sometimes things just slip through.

My favorite is the rejection letter I received last week for something I applied for over a year ago when credit was tight. I laughed because I was like are you serious?

Also it is possible that your score isn't high enough.

I will be honest with you, right now dealing with any bank (especially a big bank is just credit suicide (X- amount of inquiries, nothing you have to worry about because that was just one inquiry as compared to some people that were either trying to buy a house, car, or start a business during the credit crunch)

If you can find a credit union (or if you are already with one nothing else I can suggest)

They are a little more lenient when it comes to that compared to big banks.

Reality from some of the banks I've dealt with and gotten the inside story from. You would be better off buffering it yourself with a savings account for overdraft protection than doing a line of credit. Reality banks are only gonna lend what you give them.

(So if you need a $100 loan, they only gonna give it to you if you give them the $100)

But realize my answer isn't across the board.

[GMUBunny]

A friend of mine works for a used car dealership and he says they've seen an influx of doctors, lawyers, accountants, etc. who normally are prime new car shoppers. They miss one appliance payment or send it in late and all of a sudden no lender wants to touch them for a new car loan. It's craziness, not just you.

[BluPhire]

Originally Posted by GMUBunny

A friend of mine works for a used car dealership and he says they've seen an influx of doctors, lawyers, accountants, etc. who normally are prime new car shoppers. They miss one appliance payment or send it in late and all of a sudden no lender wants to touch them for a new car loan. It's craziness, not just you.

It's the pendulum swinging too far the other way.

They were so loose with lending in the early 00's (Suggest an abbreviation) that now they are ridiculously stringent.

Hopefully everything will level out again.

[AnchorAlum]

The best place to obtain a true score is myfico.com
You will pay for it, but it's the one that is used by those who are granting credit to check your scores. Pay for it and you'll see what they see.

I recently bought a car and went into the dealer armed with my (excellent) score. I knew ahead of time I would qualify for those ridiculous zero rates, and it made me feel good about what I could afford.

Seeing your credit report is important too, because you could be surprised by some off the wall "ding" that doesn't belong there. You can immediately challenge it.

[christiangirl]

Originally Posted by preciousjeni

My highest balance on a card (which was a mistake on my part) was $300.

Why is this a mistake?

[preciousjeni]

Originally Posted by christiangirl

Why is this a mistake?

A mistake for me. I try to keep a zero balance.