This is BS! I just checked my credit score for this year and right now it's 660 only since buying my car back in May. When I bought my new car, the dude told me that my Experian score was 703! Since then, I haven't had [NOT EVEN] ONE negative thing acquire against me, not one late payment on ANYTHING but this is my score. The only thing that I can assess is that it happened by purchasing a new car, which seems ironic and contradictory. How the hell did I go down 43 points by moving up?
This should help you to understand how credit scores work..
FICO scores from 300 to 850 and Vantage scores from 501 to 990.
Here is the breakdown for both systems.
Vantage Plus system scores from 501-990.
A-901-990
B-801-900
C-701-800
D-601-700
F-501-600
FICO system scores from 300-850.
Elite-740-& up
Prime-700-739
Preferred-660-699
Standard-625-659
Sub-prime-624-& under
FICO is the only one that matters since it's the one that all major lenders look at.
So as you can see it depends on if your looking at a true FICO score or a Vantage plus score.
As far as what makes up credit scores it's the following;
1. Payment history (longer the better) 35%
2. Time in bureau (longer the better) 15%
3. Types of credit (mix of credit cards & installment loans) 10%
4. New credit (new accounts and inquiries) 10%
5. Debt to credit ratio (lower the better) 30%
And just so you will know Experian only uses Vantage, Equifax only uses FICO and Transunion uses both depending of which type of credit report is requested of which there are 3. The standard that people get from The Internet, the auto enhanced which only car dealers and lenders see and the factual which only mortgage people see. The last two are not available to the general public.
To have the very best score and profile people need 3-4 credit card accounts (revolving) with balances below 30% of their credit limits and 2 cars, homes, boats, motorcycles, computers, furniture or personal accounts (installment) all with good long payment history's.
Since Experian uses the Vantage Plus system it's natural for your score to be higher on Experian then any of the other 2 bureaus.
And for those the obviously don't know debt to income has nothing what so ever to do with your credit score.
I understand!!! There should be a law. I think it is criminal they can do what they please, considering credit score is everything.
The credit agency thinks you have to much "debt to income" ratio.
I would dispute it with them. 660 is not to bad but of course you deserve much better in my opinion.
Suzi Orman has good ideas what to do about credit score.
I will hate the credit agency with you!!
Hi, there's a couple things to think about, one: which type of score did the guy at the car lot use? There are several types of scores, (FICO - most common, Vantage, Plus, and so on). Some scores have different ranges ( some go up to 850, some 900, and some higher then that). So a lot of things could be the reason.
Next, getting an auto loan, can be good as you make payments, but it could have you drop a few points even several depending on the amount of debt you took on. For example: you could be financing 15k on a vehicle or you could be financing 50K or even more. Debt plays an important part in determining your score. As you pay things on time, your score will increase. It's an up and down thing, and nearly impossible to keep it around the same number.
To get back to your other question, What kind of score is a 660. It's about average, 680 is about the national average. However, several financial guru's have stated 750 is the new 650, meaning you need to have about a 750 to get approvals or at least decent approval terms.
I know it sounds weird or even "nuts" but that's just the way it is. Best of luck!