We refinanced our house several months back to get a lower rate, which meant that the new mortgage holder eventually sent us a copy of our credit scores. So, I can now say that as of 7 months ago, our credit scores were in great shape. (I see no point in actually paying for them, so that knowledge will have to do.) Here’s what I found:
First, I noticed that they actually used 3 different scoring models: the FACTA Beacon 5.0 (which ranges from 300-850), the Fair Isaac Redeveloped FICO 2 (which ranges from 300-850) and the FICO Risk Score Classic 98 (which ranges from 336 to 843). My highest score came on the FACTA Beacon with a range of 14 points between the highest and lowest scores, and my husband’s highest score came on the Fair Isaac Redeveloped FICO 2 with a range of 23 points between the highest and lowest scores.
But I had to wonder about the comments stated on the report. They said:
- Too many inquiries last 12 months. – Ok, this makes sense. I’ve applied for a couple of credit cards, opened a couple of bank accounts (where they DID check my credit) and then of course we applied for the mortgage.
- Amount owed on revolving accounts is too high. – This one makes no sense. We pay our revolving accounts in full every single month. How can the amount owed be too high when it’s zero? Unless they count any balance, ever. I did once hit about half of my AMEX’s limit when I charged several plane tickets to Europe.
- Proportion of balances to credit limits is too high on bank revolving or other revolving accounts. – Hm, we don’t have any bank revolving accounts. Maybe this is back to the AMEX?
- Amount owed on accounts is too high. – Again, huh? The only thing we owe on is our mortgage, and that’s not really “too high” in comparison to the value of our house.
- Inquiries did impact the credit score and, for models that indicate it, no derogatory info was found on the file. – No surprise on this one, I figured they would affect it.
- Length of time revolving accounts have been established. – This one would make sense if it were only on my scores, but it’s on my husband’s as well, which doesn’t.
Obviously the exact formulas for figuring credit scores are kept secret because they are proprietary, but it’s odd to think that we’re in good shape financially & payment history-wise, have excellent credit scores, and we STILL have all sorts of comments on there as to why the scores aren’t even better.