There is much confusion over how a closed account affects
other credit score factors, such as payment history, length of credit history and mix of credit.
There's one
other credit score factor that's probably more important to high income earners than it is to middle - and lower - income earners.
FICO ® Credit Score Terms: Your FICO ® Credit Score, key factors and other credit information are based on data from TransUnion ® and may be different
from other credit scores and other credit information provided by different bureaus.
The percentages and information used here are based on the FICO scoring model, but are similar
for other credit scoring models.
But beware that the credit score from Credit Karma is TransRisk score from TransUnion (Credit Karma is also offering VantageScore), one that's considered as one of the FAKO scores (
see other credit score types), not the authoritative FICO score that most creditors use to judge your credit worthiness.
The legislation would help many families achieve homeownership by instructing Fannie Mae and Freddie Mac to update their requirements so that lenders might be able to
use other credit scoring models that are empirically derived and both demonstrably and statistically sound.
* Like
other credit scores offered to consumers, the credit score Nav provides is the Vantage 3.0 score and is not likely to be the same score used by lenders or other commercial users for credit decisions.
Unlike other credit scores, the Vantage Score model applies the same algorithm to each of the three credit reporting agencies data.
Even though there are
many other credit scoring models meant to compete with FICO, none of them are even close to being used as widely as «King FICO».
Most people can get away with a debt usage ratio of 20 % to 25 % before it really starts to affect their scores,
provided other credit score factors (like payment history, for example) are strong.
Although FICO has the largest market share, companies
with other credit scoring models are making significant waves in the market.
For example, if you are looking at your FICO score, then the age of the bad debt or collections account will have less impact the older it is, compared to
other credit scores who do not take that into account.
FICO ® CREDIT SCORE TERMS: Your FICO ® Credit Score, key factors and other credit information are based on data from TransUnion ® and may be different
from other credit scores and other credit information provided by different bureaus.
Personal FICO credit scores and
other credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit or financing type you are eligible for.
Discover and other lenders may use different inputs, such as FICO ® Credit Scores,
other credit scores and more information in credit decisions.
Discover and other lenders may use different inputs, such as a FICO ® Credit Score,
other credit scores and more information in credit decisions.
The other credit score categories are: Poor (280 - 590), Fair (590 - 640), and Good (640 - 720).
Lots of things don't factor into the VantageScore model — or
any other credit scoring model, for that matter — including race, color, religion, nationality, gender, marital status, age, salary, occupation, title, employer, employment history, where you live, or even your total assets.
Whether your monitoring plan includes providing the true FICO scores or
other credit scores, you must monitor the scores from all three agencies to provide you with the complete picture of your credit standing.
These other credit scores are similar to the true FICO score, but are calculated using formulas that differ from the FICO formula.
Other credit scores may differ, but the FICO score considers only inquiries you made during the past year.
After all, everyone should be keeping an eye on their credit, and the free FICO credit scores are the real deal, not
some other credit score that is not recognized by lenders.
Other credit scores, such as the Vantage score and the PLUS score, are calculated with formulas similar to the FICO formula.
Other credit scores, such as TransUnion TransRisk or VantageScore, have similar information and a similar scoring range, but most lenders use the FICO score.
If you are applying for multiple loans to get the best rate (rate shopping), FICO and
other credit scoring models will consider that one inquiry if these applications / requests for credit fall within a certain window — typically 14 days.
Applying for too many credit card accounts can hurt your FICO score or
other credit score, even if you don't get approved.
Other credit scores may differ significantly from your FICO score.
Other credit scores, which use scoring formulas different from FICO's, may not give you an accurate representation of the scores your lender uses when assessing your credit profile.
It's supposed to be «easier to understand» than
other credit scores (the FICO scores) and allows consumers to «see how changes to their credit habits can directly influence their credit rating.»