- Discussion board

I just ordered my TransUnion Credit Score, and it was scored at 633 points. Here are the following reasons my score wasn't higher.

Factor 1: Length of revolving accounts have been established is too short: Longer credit histories provide more payment behavior information. Continuing prompt payments over a long period of time on the same accounts can improve your credit score.

Factor 2: Too many recent inquiries: Excessive inquiries have a negative impact on your credit score. Limiting the number of credit applications you complete can improve your credit score.

Factor 3: Too few retail accounts: Not enough retail account activity has a negative impact on your credit score.

As for factor one, that's understandable, but when you are 17, you can't have had credit too damn long! I've had it since June of 2000, and NEVER missed any payments. Factor 2 was caused by some smartass friends who decided they would apply for credit in my name and use my identity. I had 2 cards I got and I NEVER applied for, so I canceled them. At current, I am disputing those 2 accounts and the inquiries on ALL 3 of my credit reports. Factor 3, What the hell! I don't see how not having a retail account could break you down. Should I apply for a retail card, and if so what one? Does anyone know why not having a retail account hurts your score. I feel that a score of 633 SUCKS, especially since I have 4 credit cards on there and a loan that's always been paid on time. Let me know what ya'll think.

I AM A FIRST TIMER AND ALSO WOULDlike to know what the "scores" mean. I also am having the same Understanding/concerns that u seem to be having.
Has anyone ever answered your questions???

From my own personal experience, I've learned that the bureaus have their individual scoring system. For instance, Equifax....if you have 600 or higher then that is considered a fairly good score. And Equifax is supposively the main bureau you need to worry about. In other words, they are like "top dog" of the three bureaus. As for Transunion, I've got perfect credit, other than lacking history. My score has stayed at 595 for the last 2 years. It frustrates the crap out of me. And Experian, I don't believe they even use a scoring system. So hope this helps.

What I have come to learn is that the first two are probably the most important in determining your score. I wouldn't stress about getting more debt right now (by applying for a retail card). The most important factor is paying ontime all of the time and keeping your debts to a minimum. Don't have cards that are close to maxing out...and don't have too many cards. More than two cards looks really bad. If you want to see what gets weighed the most in calculating your score, check out this site:>http://www.icreditcentral.com/html/b_creditschool_a1x.shtml

matty,

There are some ways to overcome item 1. In my quest in understand and demystifying the credit scoring industry, I have found that if you ask someone like a parent to add you as a user on their credit cards you will gain their entire credit history. Which will in turn drive your credit score up significantly. Also, it is very important to pay your credit cards down as low as possibe by the end of the month. The credit scoring module will rate your score lower if your balances are ove 50% of your limit. About the inquiries, you can dispute them directly with the credit bureaus and creditors using federal law. If you need some insight I can get you starting in the right direction. I have removed many inquiries from my credit report that were not authorized.

About the retail accounts- All accounts are formulated differently in the score. For example a homeloan that has been paid on time for three months is going to increase the credit score more than a credit card being paid on time for three months. They do this for the reason of seeing what types of credit your are most likey to default on. It is best to have a variety of different types of credit on your credit report, for example: car loan, a few unsecured credit cards, and a couple of retail cards. The average consumer has eight unsecured credit cards--- having two is plenty.
Remember, the credit score is tabulated using over 1.5 million consumers and rating their performance with different types of credit. In reality your score really isnt your score, it's a score based on averages of those 1.5 mill. that are tested each year.