Quote:
Originally Posted by sweeps
I agree with you. No one outside Fair Isaac knows the precise formula that determines your credit score. And the expanded uses of FICO beyond attaining credit are very questionable. But the original question was whether there was a way to boost a credit score without getting a credit card (or other loan). Based on the general information provided by Fair Isaac, the answer is a definitive no.
(Note previously you could get an immediate FICO boost by piggybacking on someone else's credit by becoming an "authorized user". A market even sprung up around this loophole where people could pay to become authorized users. That loophole has since been closed. If there are other loopholes out there, please let me know, I'm not aware of them.)
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I'm glad we're agreeing. I still stand by my original statement that trying to boost your FICO may actually worsen your credit profile since we have no idea what's being used to calculate credit worthiness. The FICO score is simply one of a plurality of metrics used.
Here's the question I put forth. I'm questioning if a higher FICO score will indeed help lower the mortgage rate, or if a reduction in debt and increase in income will do more to lower the rate, given the fact that income is not part of the FICO score (supposedly)?
We can certainly make statistical inferences by passing multiple scenarios through the black box, but it's difficult enough to make statistically significant inferences with just a few random variables. With the FICO you have hundreds if not thousands of variables. Plus on top of that you add in time variances as they change your algorithm over time.