QNA: Is this true about credit scores?
While going through some of the questions on YA, I came across an answer that states that (I quote) “Experts find that credit reporting agencies give this factor 10% weight while determining your credit score.”… “this factor” being the amount of money you have in the bank. Does your bank account affect your credit report/credit score in any way, shape or form???
DIRECTLY, I mean.
Answers and Views:
Answer by Starte M
FORGET CREDIT.
Are you a FICO score?
Endeavor to live debt-free and put that credit nonsense in the toilet where it belongs.
Answer by Mari RNo it does not. The credit score is based on the average of you FICO scores. The only time your savings comes in is if you are applying for a loan and their is an actual person that has to determine whether or not your are trustworthy.Answer by Mary B
No.
Banks are not permitted to report to a credit bureau how much money an individual has in their account…because it’s an asset and not an extension of credit.
I have no idea where the so-called “expert” got his info…but it’s an animal that doesn’t exist.
Answer by sweetpeaCredit is EVIL. Live without it and you’ll lead a richer, stress free lifestyle. Shame on banks pushing it on us like crack!Answer by Lady D
No. When we compute your credit score we don’t know how much is in the bank. I worked in mortgage for years. What matters is:
1) How many credit accounts you currently carry
2) payment history on existing credit accounts
3) Debt ratio of the total amount you currently owe compared to the total amount of credit you have been extended.
4) The number of credit inquiries you have had in the last 90 days.
I work for a loan company. So I can tell you, the amount of money that you have in the bank definitely does not effect your credit. Now that may effect a credit decision at a bank. But credit is mostly effected by money you borrow, collections and inquiries. There are some other things that factor in there. But these are the heavy hitters.Answer by spifiman1
No.
Saving and checking accounts are not reported to the credit bureaus because they are not loans.
Credit 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%
I have no idea where this so called expert got their information, but they are simply wrong.
Answer by StudlyThat’s the problem with Yahoo Answers….anybody can come here and claim to be an expert, but they acually don’t have a clue.
For future reference, if they don’t supply any source to back up their statements, don’t believe it.
In my case, I’m far from an expert. But I get lots of these “professional” people bashing me, saying I don’t know what I’m talking about.
Notice that when I answer, I point out sources and quote laws. They simply state they are an expert and leave it at that.
Go to https://www.myfico.com and look at their consumer education information. This is the site for the folks who developed the credit scoring system, so if anyone knows how it’s put together, they would.
Your bank account balance has nothing at all to do with your credit score.
Answer by ed mno
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