Author Topic: Highest FICO score without having to pay loans?  (Read 6195 times)

trashmanz

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Highest FICO score without having to pay loans?
« on: February 23, 2016, 11:57:10 AM »
I saw that a recommendation in my FICO score (740) profile is:

Key Factors affecting your personal FICOŽ Score
1) Lack of recent installment loan information
Your credit report shows no recent non-mortgage loans (such as auto or student loans) or sufficient recent information about your loans. Having a loan along with other types of credit demonstrates that you are able to manage a variety of credit types.

Wondering if this is holding down some MMMers?  How high can your FICO go without any active loan servicing?  (Mainly of interest for credit card points rewards program benefit churning etc. not for going gangbusters on getting credit cards for other reasons)
« Last Edit: February 23, 2016, 11:58:46 AM by trashmanz »

Bracken_Joy

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Re: Highest FICO score without having to pay loans?
« Reply #1 on: February 23, 2016, 11:58:49 AM »
Following because I'm curious. Before I went back to school and got student loans, my credit was as high as 812. No mortgage, no car payments. Just CC history.

Catbert

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Re: Highest FICO score without having to pay loans?
« Reply #2 on: February 23, 2016, 12:05:01 PM »
I haven't had a car loan since the 1980s.  No student loans or installment loans...well, ever.  Lots of mortgages, long credit history and lately lots of credit cards.  My FICO score is above 800 and has been (I think) since FICO scores started.

aFrugalFather

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Re: Highest FICO score without having to pay loans?
« Reply #3 on: February 23, 2016, 12:05:24 PM »
Following because I'm curious. Before I went back to school and got student loans, my credit was as high as 812. No mortgage, no car payments. Just CC history.

Thats pretty high, probably at that score there is no benefit really going higher anyway?

geekette

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Re: Highest FICO score without having to pay loans?
« Reply #4 on: February 23, 2016, 12:11:01 PM »
Mine always says the same thing regarding loans, plus another ding for recent inquiries, but my FICO score wanders between 800 and 820.

I have a pretty long history, though.

Uturn

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Re: Highest FICO score without having to pay loans?
« Reply #5 on: February 23, 2016, 12:20:00 PM »
I stopped using my debit card and run all my expenses through a credit card now, paid off weekly.  My credit score went from 780 to 812.  The only loans I have is my mortgage. 

Bracken_Joy

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Re: Highest FICO score without having to pay loans?
« Reply #6 on: February 23, 2016, 12:24:08 PM »
Following because I'm curious. Before I went back to school and got student loans, my credit was as high as 812. No mortgage, no car payments. Just CC history.

Thats pretty high, probably at that score there is no benefit really going higher anyway?

Well, I was 18-24 in that range, so I wasn't using it for anything anyway =) I got dinged with taking a lot of loans in quick succession for school, and lowering the average age of my accounts substantially. So I'm down to around 750-775 now. It's been increasing as time goes by though. We want it back up in the next couple years, as we'll be looking to buy in ~2 years.

arebelspy

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Re: Highest FICO score without having to pay loans?
« Reply #7 on: February 23, 2016, 09:13:39 PM »
Following because I'm curious. Before I went back to school and got student loans, my credit was as high as 812. No mortgage, no car payments. Just CC history.

Thats pretty high, probably at that score there is no benefit really going higher anyway?

There is no difference after 750.  Anything above that qualifies for the highest rates.
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dess1313

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Re: Highest FICO score without having to pay loans?
« Reply #8 on: February 23, 2016, 09:20:24 PM »
if you still want to keep your credit active and lively looking, get a good credit card with rewards and just cycle bills and groceries through it.  there's some really good bonus cards out there, and some without even any cost to own them, or have 1 free year of trial periods.  it keeps it showing month after month you're managing your credit well.  just don't run it up over 50% of its credit limit or it looks bad even if its temporary.

Bracken_Joy

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Re: Highest FICO score without having to pay loans?
« Reply #9 on: February 24, 2016, 07:27:07 AM »
Following because I'm curious. Before I went back to school and got student loans, my credit was as high as 812. No mortgage, no car payments. Just CC history.

Thats pretty high, probably at that score there is no benefit really going higher anyway?

There is no difference after 750.  Anything above that qualifies for the highest rates.

Oh, good to know. I thought it was 775 for some reason. Excellent.

katsiki

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Re: Highest FICO score without having to pay loans?
« Reply #10 on: February 24, 2016, 08:38:31 AM »
At 740, I wouldn't worry about it much personally.

littleqt

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Re: Highest FICO score without having to pay loans?
« Reply #11 on: February 29, 2016, 01:23:35 PM »
My SO has a credit score of 850.

He has no mortgage, but does have one loan for his car. He also doesn't church cc's as he doesn't want to lower his score at all. He has nearly 7 years of credit history and has co-signed 3 or 4 times for family members. We are not sure how much the cosigning has affected his score. Would anyone know?

arebelspy

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Re: Highest FICO score without having to pay loans?
« Reply #12 on: February 29, 2016, 01:28:09 PM »
He also doesn't church cc's as he doesn't want to lower his score at all.

I don't know what it means to "church" a CC, but I'm assuming some autocorrect I can't figure out, but either way, I guess you mean he's not wanting to do something cause it' might temporarily hurt his score.

The thing is, there's no point in having a good credit score if you aren't going to utilize it.  It's an asset, and if you leave it sitting there, you're wasting it.

Above 750 you get all the best rates.  There's no difference between 760 and 850.  A temporary drop from 850 to 800 in order to make money is a good thing.  What is 850 getting him, besides bragging rights?

Is "had an 850 credit score" going on his tombstone?  Is he expecting a medal from the president?  Or is he passing up free money for literally no reason besides pride?

/shrug

YMMV.
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littleqt

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Re: Highest FICO score without having to pay loans?
« Reply #13 on: February 29, 2016, 01:38:08 PM »
He also doesn't church cc's as he doesn't want to lower his score at all.

I don't know what it means to "church" a CC, but I'm assuming some autocorrect I can't figure out, but either way, I guess you mean he's not wanting to do something cause it' might temporarily hurt his score.


I'm referring to credit card churning and manufactured spending. He did it one time but in general doesn't feel he needs the sign up bonus or flight points. I'm not an expert on the subject.

And we didn't even know he had a score of 850 until recently when we were looking into getting a loan. It is by no means a point he brags about let alone even bring up. I see I didn't respond to the OP's question exactly, but I've been curious about his score. I agree anything above 750 is excellent.

Eric

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Re: Highest FICO score without having to pay loans?
« Reply #14 on: February 29, 2016, 01:47:45 PM »
He also doesn't church cc's as he doesn't want to lower his score at all.

I don't know what it means to "church" a CC, but I'm assuming some autocorrect I can't figure out, but either way, I guess you mean he's not wanting to do something cause it' might temporarily hurt his score.


I'm referring to credit card churning and manufactured spending. He did it one time but in general doesn't feel he needs the sign up bonus or flight points. I'm not an expert on the subject.


So you're saying he tried it, but then decided that it's not the religion for him?

littleqt

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Re: Highest FICO score without having to pay loans?
« Reply #15 on: February 29, 2016, 01:58:57 PM »
He also doesn't church cc's as he doesn't want to lower his score at all.

I don't know what it means to "church" a CC, but I'm assuming some autocorrect I can't figure out, but either way, I guess you mean he's not wanting to do something cause it' might temporarily hurt his score.


I'm referring to credit card churning and manufactured spending. He did it one time but in general doesn't feel he needs the sign up bonus or flight points. I'm not an expert on the subject.


So you're saying he tried it, but then decided that it's not the religion for him?

Yes, that's what I gather... I suppose we don't belong to a church or feel a need to.