- This topic has 6 replies, 4 voices, and was last updated 8 years, 12 months ago by Anonymous.
- May 5, 2011 at 11:54 pm #206511AnonymousInactive
Is there a specific formula to it? Please don’t answer this question if you don’t know. I don’t want to read stuff like “if you pay off your debt, your score will be high”.
- May 12, 2011 at 6:48 am #274030milmalercaucerMember
There is no set formula used by all three credit reporting agencies.
FACTA defines a “credit score” as:
A numerical value or categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default (and the numerical value or the categorization derived from such analysis may also be referred to as a “risk predictor” or “risk score” (FCRA ?609(f)(2))
This is why your scores vary between the credit reporting agencies.l
Hope this is of help.
- May 17, 2011 at 6:47 am #278625dharadinsudiMember
FICO scores are based on the following factors;
1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%
To have the very best score and profile people need 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, boats, homes, motorcycles, computers, furniture or personal accounts (installment) all with good long pay history’s.
- June 10, 2011 at 3:44 am #434072AnonymousInactive
That’s why its better to sell the old house FIRST – even if you have to rent for awhile.
- June 10, 2011 at 3:44 am #434073AnonymousInactive
unless your old house is very close to being sold or will close on the same day the house you are closing on new house, you might not get approved for a mortgage for the new house and unless you have that sales agreement and are 100% sure the sale will go thru – it would be extremely risky to try and buy anything
- June 10, 2011 at 3:44 am #434074AnonymousInactive
>You< might need the money from the old house to buy the new house, but not everyone does. We bought a house that we could afford even if our other house sits on the market (which it is doing). You can also build in contingencies where you can’t close until your other house sells, but in this market, few sellers are willing to deal with that without a serious out clause. If you need the proceeds of your old house to buy a new one, then you either have to time if perfectly or you have to sell the old one before you close on the new one.
- June 10, 2011 at 3:44 am #434075AnonymousInactive
I have not even looked for a house till having a signed contract on the one for sale. Even with the ability to carry 2 mortgages and having enough cash for 20% down that is a gamble one should not take.
You wait. Even if your home sells quickly you can always rent an apt on a month to month basis while you find your dream home.
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