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

[Thomas_Thumb]

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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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The fact you mention EQ and TU scores together smells strongly of Credit Karma. In that case the scores would be VantageScore 3.0. The VS3 algorithm penalizes severely for too few revolving accounts. It also penalizes harshly for increased revolving utilization

Take a look at your Fico 8 credit scores. That algorithm does not require a lot of cards to have a high score. It is not unusual to have a scores in the 780- 810 range with only 2 open cards. All that is required is to have a clean file with the cards being atleast 5 years old and no new accounts under 12 months. No loan required.

Two important points:

1. The cards should be "bank" cards such as Visa, Mastercard, Discover or AMEX blue everyday. NOT charge cards such as AMEX green/gold/platinum or store cards.

2. The 1 or 2 cards should report a small statement balance and then be paid in full before due date. By small I mean under 9% of the card's credit limit. So, If the card has a $5000 limit then statement balance should be under $450. If you have low limit cards - say $500- you could still charge $450 on the card but, then make an early progress payment so balance reported on your statement is under 9% ($45).

P.S. Having 2 cards is much better than 1. You husband should use that 2nd card atleast once every year, assuming the account is still open. Otherwise, there is significant risk the card issuer will close the account for non use.

[TheKid2]

As others have stated you need to educate yourself on the different scoring models and what scores are actually used by creditors. Credit profiles and scoring algorithms are complex animals designed to provide lenders with a quantative picture of your credit worthiness. If you want a credit card, one scoring model is used. Want a car loan? A different scoring model is used. How about a mortgage? Totally different scoring model is used. You do not have 1 credit score, not even close. Worse, the Vantage scores you get free from sites like Credit Karma are not used for anything. In the end, you are wasting your time titling windmills writing letters and filing complaints. 

If you want to borrow money (credit) you need to play by their rules. Period. If you don't need to borrow money then don't care about your scores. Otherwise, take control of your credit. Pull your free credit reports from ACR (annualcreditreport.com) and go through them to be sure they are all correct. Then use the community here to read up on what the scores are looking for and what you need to do to maximize your scores. Learn the rules of the game and beat them at it with high scores, which for someone who is financially solid is not hard at all. It won't even cost you money, in fact those with high credit scores use credit card reward programs to get all sorts of free stuff. Working the credit game is easy for someone who has the finances. Do that instead of wasting all that time writing letters and complaining, it will pay off for you in the end.

[Thomas_Thumb]

@TheKid2 

You just changed color (ranked up). No longer a red neck. Your post count was 501 when I checked. So, another data point for the 500 threshold.

[TheKid2]

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@Thomas_Thumb wrote:

@TheKid2 

You just changed color (ranked up). No longer a red neck. Your post count was 501 when I checked. So, another data point for the 500 threshold.

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woot! I guess the ranking system algorith is as secret as the scoring algos! 

[kasniak]

Yes.  I have 2 mortgage accounts that are now closed.  Paid them off in 2017.  (It was really only one mortgage, but the bank I had my mortgage with sold the mortgage to another bank at one point and so now there are "two" closed accounts.)

[kasniak]

Where do I go on this site to look at my free Equifax Fico 8?

I was planning on putting my complaint dispute letter to Equifax in the mail tomorrow.  I already sent formal letters to Transunion and the Consumer Federal Protection Bureau.

[kasniak]

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.  I get my paper bill in the US mail and I pay it off with a paper check that I send back with a stamp on it via the US Mail.  Basically, "the old fashioned way"

2. Who is the lender?  My credit card is with Citibank

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? Transunion is a vantage 3.0 and Equifax is also a vantage 3.0

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

What scoring model?  Score is actually a 763 and the scoring model is FicoScore8.

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?

I did book a vacation on my card a few months ago so I could get the reward points and not to mention I booked it online, so you have to input a credit card.  So, that would have been a high percent of utilization, which being admittedly niave, I didn't think anything of it knowing I'll pay it off in full the following month.  The limit on my card is $8000.  Average about $1000.

  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.

Should I just open another card just to open one?  Like, I can use it just for my amazon purchases or something like that just to make it organized and easy.  And, if so, do you have any recommendations for a card?

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.  Thank you!!

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.

[kasniak]

I feel they are ruining my financial reputation.  Taking 35 years of great history and slinging mud at it.  I feel violated.  Mislabeled.  Terribly wrong.  And anything else you can think of.  I deserve better!  I don't know what the future holds and whatever it should require, my credit report should provide me with an account that is right and just.

It's the same thing if I were a student and I worked hard and put in the time and effort to get all A's only to have the university change my transcript to all C-'s.  Because they "felt like it".

[kasniak]

If I open up another credit card, will one other credit card be good enough?  (Then, I'll have two cards).

[FicoMike0]

To get your free Equifax fico8, start here,

https://www.myfico.com/products/fico-free-plan-a

You have to click on free plan, scroll down past any paid offers to get the free plan. They really try to sell you something, lol. Don't give up, it's there. Don't give them a credit card number, that's the paid account. You'll get to an order page for $0.00, that's what you want. 

I downloaded their app on my phone, set up the free account with a pin. I click on the app, enter pin at prompt, it displays my score.