A recent study shows that I'm not alone in knowing little about Credit Scores. (
http://www.consumerfed.org/news/669)
I've been looking for a thread about them - how they are calculated, what matters, what doesn't matter, how they are used by banks, what is the best way to dispute, etc. I have searched, and I haven't really found anything like that.
If there isn't such a thread already, would such a new thread be welcome here by The Establishment?
I have done a fair number of Google searches. Many sites have the famous percentages, and "examples" of how much a good score can save you. I get it - I should pay my bills on time, and I want a good score.
Few, if any, seem to have information on the calculations themselves, or specifics on how positive or negative activity in any of the percentage categories are actually scored. I understand that much of this is proprietary bank information, but surely there are some people with at least some general knowledge and advice? If anyone has any helpful links with information, I'd be eager to see them - feel free to PM or post.
A smattering of the questions I have: (I understand that some of them are broader than just the credit score piece, but that's an important part of all of them. Plus, I have more.)
Even though the percentages tell you how much the categories are worth (On time payments, 35%, how much you owe, 30%, etc.) it doesn't tell you anything about the scoring of particular activities within those categories. Examples (not the best, but you'll get the point, hopefully): If I miss a mortgage payment by a month, will I get a 0 for my 35% of on time payments? Is that the same as if I missed an $85 student loan payment by a month 10 years ago? Or if I missed a $1.95 CC payment in high school that I still haven't paid? If I recently refinanced, so I still owe close to 100% of my current mortgage, is that a black mark against my 30% of how much I owe?
How much is a pull worth, in points and in dollars?
What are items that are worth disputing off your credit reports, and what are effective ways to do this?
How badly (and for how long) does new credit hurt, as compared with the benefit of more credit leading to a lower utilization ratio? Is there a way to calculate this?
If your mortgage is by far your largest credit, dwarfing your CC credit, and your utilization is high (meaning, you aren't close to paying it off) does this impact your score in terms of credit card approvals?
How often should you put a few dollars on a CC you don't use for regular spending in order to make it work in your favor in your credit score?
What are good practices in terms of managing CLs, both in terms of credit score and in terms of being approved for more CCs from the same bank in the future? Is it detrimental to have a wide variation between CLs on different CCs, independent of utilization?
Edit: Wanted to add one more: Most of the charts showing different levels seem to group the over 700 crowd together, pretty much. Maybe there is another little break at around 740. Once you are over 74x, how much benefit do you get by continuing to increase your score? Are certain banks known to have target scores one should aim for?
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Topic: START HERE: Links To Credit Card Threads (Read 208538 times)