Credit Score Question

[04r1]

As far as loans go, does anyone know what number qualifies you for Tier 1, Tier 2, Tier 3, etc. Im about to do the free credit report and get my score also. Just wanting to know where I stand if I wanted to get a loan. Thanks.

[04r1]

Also, anyone know on average how long it takes once you pay a loan off for it to post with the credit company?

[iwishiwascool]

I dont know for sure, but I doubt you will get your actual score for free. I could be wrong.

 

There is no set score that will net you X interest rate or risk level. Also, the tiers that you speak of differ from company to company and arent split into tiers. When I evaluate a credit record (I use Equifax) I consider the debt to income ratio (DTI), number of collections, amount of equity, as well as the score. The score is a good initial indicator though as to whether we will be able to finance the customer or not. Anything below a 600 beacon is challenging.

 

In other words, there is more to it than simply your score and your score will differ between the three agencies.

[Guest powers]

if anyone would like a complete trimerge credit report WITH scores for free let me know.

 

Josh it usually takes 30-60 days to report to the bureau's when you have paid an account in full. it just depends on their billing cycles.

 

There is no set tiers but general area's.

for example

750+ is excellent

700+ is considered good credit

600+ is good enough for 100% on a home and cars

500+ is when you need much larger down payments and under 560 is brutal

under 500 just quit trying. No one is gonna give you a damn thing smile.gif

 

The median credit score in our country is 700. The score ranges are different for some lending. Some industries have their own scoring profiles. The 3 bureau's score you based on the scoring profile requested by the credit grantor. So it is possible to get different scores from different places on the same day depending on the profile that company ask for. Credit is a very complicated subject and most of what you will hear from people who are not certified to discuss it will be inacurate. Acording to the FTC in order to even give advice on credit or discuss it people you need to go through a training course and pass a test. You then have to do continuing ed each year to keep your certification good. Very few banks, lending companies, car dealerships do this becasue it is VERY loosely enforced. Most people who work for these types of companies don't even know about it. For example I am the only person certified at my company. So when you get advice about credit from someone remember that you will most likely be getting only part of the story.

[iwishiwascool]

PS, Im no where near certified. Im just a desk jockie with a calculator that tells sales reps what interest rate to charge from time to time.

[Guest powers]

Originally posted by iwishiwascool:

PS, Im no where near certified. Im just a desk jockie with a calculator that tells sales reps what interest rate to charge from time to time.

Sorry if the certification things came across like it was directed at you. I was making a general statement. You would be suprised how often I hear from people that they have heard this or that and the information turns out to be incorrect.

 

there are ALOT of stories that get passed around about credit and credit reports. That is why the government is TRYING to make the big three be more informative. This is the main reason the Fact Act was passed and inacted last year.

[iwishiwascool]

I didnt take it personally.

 

http://www.columbusdsm.com/forum/images/smilies/thumb.gif

 

Im actually about to PM you a question.

[Guest timmybgood]

i believe as of march 1 you are allowed one free credit report per agenecy per year. at least according to my financial planning 260 teacher at OSU, and he's a CPA. btw i love this course, i've learned so much useful stuff, first time i've said that ever about school!

[nurkvinny]

http://www.consumersunion.org/creditmatters/creditmatterslearnmore/001887.html

[Guest powers]

Well I have been asked this by many people here through Pm so I thought I would just copy one of the PM's I sent back to someone today. I get asked this question more than any other credit related questions combined.

 

Will getting my credit pulled drop my score?

 

I hope this answers a few questions for people.

--------

10% of your total score is made up of how many inquiries you have had in the last 12 months. You are allowed 6 per year before it will effect your score. After that the most your score will drop is 10% of what it was. There is no set rule for how much each one will hit your for as it will range by what score profile you fit into based on how you have structured your accounts and your age.

 

Exceptions to this rule are this. Auto and mortgage inquiries will only count once if you have mulitple auto or mortgage companies pull it with in a 30 day window. Example you are shopping for a car and want to shop around for the best rate. As long as they pull your credit as an auto company they can pull it 10 times and it will only count once each will report but only one is counted.

 

The reason is this. If you have made manu credit inquiries in the last 12 months you are seeking additional credit with companies other than the one who is currently looking at it. You may have incurred credit obligations that are not reporting yet on your credit report. Another reason is they are concerned if you are seeking so much credit that you have to have your credit pulled over and over to get it, what are your intentions to repay these obligations and why are you not finding what you are looking for.

 

So the short answer is yes and no.

 

most of the time people go looking fir a home loan or a car and are told they are on the verge of a higher rate or not getting the loan all together so if you have your credit pulled again looking around you may not get the loan. This is a scare tatic and has caused this huge paranoya about pulling your credit report. Personally I pull mine once every 6 months to see how things are reporting. I could go through the hassle to ask the buraeu's to give me my free copy but come on it isn't hurting my score as much as a mistake would be. Not knowing is alot worse than my score dropping 2-3 points.

[Kohones]

Great question & great answers. My 2 cents as an x-banker with 28 yrs experience!

* Company out of California called Fair Isaac is who we can Thank for this stupid credit scoring system. It has succeeded in dismantling the weighing of a credit application for its own merit ie CHARACTER, CAPACITY, & COLLATERAL.

* Yes there ARE tiers especially with Prime lenders. What is a prime lender? Any lender that will extend credit to a person with a beacon of 640 & higher

* Tiers typically go = beacons of 620 - 640 tier 4, 641 - 660 tier 3, 661 - 690 tier 2, everything north of 691 tier 1

* Ohhhh & gets more complicated if you're applying for a mortgage! Thats different rules.

* If you let your credit go delinquent, they'll report you as such immediately! Once you get the creditors up to date, it will take MONTHS for them to update your credit report

* Probably shouldn't waste your time getting a copy of your credit report either. Why? Because lenders pull credit under their own set underwriting criteria, they could care less what the report YOU Pulled says

 

Bottom line, just handle your credit responsibly & you can borrow what you want at competitive rates. Try to go deeper & understand for yourself why YOUR credit report says what it does? Unless you truly let your stuff go down the toilet / you'll only create more heartache for yourself & never really understand what the hell is going on????? Lenders make the rules, their sandbox, you & I just borrowing & playing in it --