Great credit history. No loans. No debt. Yet, a crappy credit score. Help!

[kasniak]

Looking for help.

So I have 35 years of great credit history.  But now that I'm in my mid-50's, my house is paid off, my student loans were paid off in the 1990's and I paid for my car in full.  I have no loans.  No debt.  I have ONE credit card and pay it off every month, in full, on time, without fail.  My Reward?  I now have a 660 credit score!!!  I'm so angry!!  I have an entire lifetime of best financial practice.  I pulled all 3 credit reports:  Transunion and Equifax both report 660.  Experian didn't have a score for me.  But, I found "Experian Boost", did it, and now I have a 783.

What am I suppose to do?  I don't want or need a loan or another credit card.  My ONE credit card is good enough.  Everyone takes it and I pay it off in full each month.  Done.  No need for anything else.

Insulting me, my husband who I've been with for 30 years, has a credit score of 813 when everything, except credit cards, we have is JOINT!  The  only thing different between him and me is he has two cards (but he hasn't used one of them since 2016) and I have one card.

Can anyone please help?  What am I suppose to do?  I feel punished for paying off all my debts in life. 

I booked an appointment with a credit consulting place and they told me that the credit scoring agencies want to see more "debt" accounts.  But, I don't need to take on debt I don't need!  I called one of the credit scoring agencies, I don't even remember which one, and he said the same thing--take out a loan or open a credit card to increase the "mix".

But all the articles out there say the "mix" is only 10% of your score.  So, why does my score SUCK with a 660 when my entire credit history is reflective of nothing negative?  I've never had any deliquencies, late payments, or anything negative, EVER.  For like over 30 years!!

I have filed a complaint with the Consumer Federal Protection Bureau.  I've also filed a complaint with TransUnion which I had to snail mail, because complaints against one's score can not be filed online.  

What else can I do??

[Horseshoez]

So, let's start with the scores you think you have:

• Equifax: If you got your score directly from them, it isn't a FICO score and is irrelevant; no underwriters use the Vantage 3.0 model.
• TransUnion: Same story as Equifax, the score is irrelevant, ignore it.
• Experian: The only score they provide for free which is a real FICO score is an unboosted FICO 8; underwriters ignore boosted scores.

As for what you can do:

• Be content with the scores you have, even if you don't know what they are; they probably aren't impacting you.
• If you really want high scores, apply for two more credit cards and do like your husband, don't use them.
• For the card you do use, don't completely pay it off every month, or if you do pay it off, make a single small charge a few days before the statement date and let that charge post.
• Apply for a Secured Share Loan (SSL) from either NFCU (if you are eligible to join) or PenFed, put $3,001 into it, and then pay it down to $250.
• If you follow the advice above, then wait a year and watch your scores grow.

[kasniak]

My transunion and equifax scores are both 660 as I stated in my original post.  It is an insult to a lifetime of great credit practice and a great credit history.  I got the scores by applying for me free annual credit report from each of the agencies directly.

[FicoMike0]

Like Horseshoez said. You need three cards, don't need to use them, except to keep them alive. As far as utilization, look up azeo on myfico. If it's not clear post again and we'll explain it. I just did the ssl trick, I got from 30 to 40 points. Again, look up ssl. I used penfed, they do it at $25 x term in months. Since you're young (to me) you might go 10 years, 120 x $25 = $3000. You end up borrowing your own money back, at 2%. You immediately prepay it to $250. You then have a loan for $250 with no payments due for 9+ years. Total interest is ~$25. It boosts your score for 10 years.

If this all seems silly, it's no more silly than worrying above a credit score when you have no need for credit. Welcome to the club.

Btw, I'm older than you. About 18 months ago I decided to get a credit card and found I was unscorabble. I had no credit, so I had no score. The five mortgages, many car loans and countless credit cards I paid off in the past are all still there, in the past.  More than ten years past and not on my present credit report.

If you're looking at vantage 3 scores, most would advise ignoring them. The scores that most consider important are fico8. There are like 28 different fico scores, but version 8 seems to be most popular. If you want to get a look at them try credit.com. They have a 7 day free trial. Sign up, play with it a couple of days and then cancel before day 7. 

Good luck, keep us posted. Any questions, just ask. There are some real credit wizards on here, you couldn't buy better help.

[FicoMike0]

P.S. Just to correct a couple of things.  Like me, you don't have a great credit history, you have a great lack of recent credit history lol. It all falls off at 10 years. Also, only experian provides a fico8 score for free. The other two provide the much disparaged vantage3 scores. This site, myfico, provides a free Equifax fico8. Two out of three isn't bad. Another search, I think there's a "where do I get a free transunion fico8" thread here. Certain banks provide them. The 7 day trial with credit.com is my recommendation. One stop shopping.

[Horseshoez]

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@kasniak wrote:

My transunion and equifax scores are both 660 as I stated in my original post.  It is an insult to a lifetime of great credit practice and a great credit history.  I got the scores by applying for me free annual credit report from each of the agencies directly.

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I would argue your TransUnion and Equifax scores are not 660.  Why?  Because you are most likely reporting Vantage 3.0 numbers and they are not real credit scores from the perspective of underwriters.

[FicoMike0]

P.P.S. If you have an experian 783 and the others are 660, I predict the former is fico8 the latter vantage 3.  When you get Equifax and transunion fico8 scores, they'll likely be mid 700 or better. The difference is that vantage doesn't count closed accounts in credit age, fico does. Like me, you probably have a closed account or two that have long history. Once you get all three fico8 scores, you'll probably be happy with them and forget this credit hacking nonsense.

Again, keep us posted, we love this stuff!

If you want another hobby, ask about churning.

[SouthJamaica]

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@kasniak wrote:

Looking for help.

So I have 35 years of great credit history.  But now that I'm in my mid-50's, my house is paid off, my student loans were paid off in the 1990's and I paid for my car in full.  I have no loans.  No debt.  I have ONE credit card and pay it off every month, in full, on time, without fail. 

1. Do you pay it off after the statement cuts? Try paying most of it off before the statement cuts.

2. Who is the lender?

My Reward?  I now have a 660 credit score!!! 

What scoring model?

I'm so angry!!  I have an entire lifetime of best financial practice.  I pulled all 3 credit reports:  Transunion and Equifax both report 660. 

What scoring models?

Experian didn't have a score for me.  But, I found "Experian Boost", did it, and now I have a 783.

What scoring model?

What am I suppose to do?  I don't want or need a loan or another credit card.  My ONE credit card is good enough.  Everyone takes it and I pay it off in full each month. 

If everyone takes it, you're probably reporting a high percentage utilization. What is the limit and what is the typical statement balance?

Done.  No need for anything else.

Insulting me, my husband who I've been with for 30 years, has a credit score of 813 when everything, except credit cards, we have is JOINT!  The  only thing different between him and me is he has two cards (but he hasn't used one of them since 2016) and I have one card.

It is easier to have a high score with two or three open cards than with one.

Can anyone please help? 

If you answer our questions and give us the information we need, yes we can advise you on what you would need to do to improve your scores.

What am I suppose to do?  I feel punished for paying off all my debts in life. 

I booked an appointment with a credit consulting place and they told me that the credit scoring agencies want to see more "debt" accounts. 

Don't buy into what the "professionals" tell you.

But, I don't need to take on debt I don't need! 

If you're not willing to change what you're presently doing, then we can't help you improve your scores.  But it may well be that your FICO scores are all already in the high 700's.

I called one of the credit scoring agencies, I don't even remember which one, and he said the same thing--take out a loan or open a credit card to increase the "mix".

But all the articles out there say the "mix" is only 10% of your score.  So, why does my score SUCK with a 660 when my entire credit history is reflective of nothing negative? 

We don't know what your FICO scores are. When you tell us what they are, it may be that your scores do not suck.

I've never had any deliquencies, late payments, or anything negative, EVER.  For like over 30 years!!

I have filed a complaint with the Consumer Federal Protection Bureau. 

That will go absolutely nowhere.

I've also filed a complaint with TransUnion which I had to snail mail, because complaints against one's score can not be filed online. 

That will go absolutely nowhere.

What else can I do??

Answer our questions.

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[GreatLife]

IMO this sounds more like a solution in search of a problem, rather than a problem in search of a solution. Why do you need credit scores if you don't want credit products (or vice versa)?

[CreditPoor]

You're not entitled to a certain credit score, so let's be clear. Millions of people have paid off debt just as you have so your not unique in that.  Having only one credit card is impacting your credit score, since it's your only line of credit. Credit scoring models like to see a mix of different types of credit, such as credit cards, installment loans. 

Additionally, the credit limit on your one card may be a factor—if your credit utilization is consistently high because you're frequently using a large portion of your available credit, that can negatively impact your score. 

Having one card and no debt is great. Unfortunately the credit system doesn't reward that behavior because they wanna see how well you manage various types of debt. The solution is simple, you want a higher score take out a few more cards or a secured loan and play the game. If you don't want to play the game, then accept the score you have and be happy you're debt free.