Vantage score of 850? Why?

Deal Score0

I just got my credit report and received the following:

Your VantageScore is: 850 on a scale of 501-990.
Your Credit Category is: Prime Plus
Percentile: Your credit rating ranks higher than 73.77% of U.S. consumers.

What factors lower your VantageScore:
Your report does not show any real estate loans, such as a mortgage, with a valid loan amount. Having real estate loans with a valid loan amount as part of your credit history can have a positive impact on your credit score.(52)

The sum of balances on your credit card accounts is too high. Having high balances on your credit card accounts has a negative impact on your credit score.(BN)

Your report shows that the available credit across your open, recently reported revolving accounts, such as a credit card, is too low. Having low available credit amounts on revolving accounts has a negative impact on your credit score.(RL)

Your report shows that the ratio of balances-to-credit-limits across your open credit accounts or loans is too high. Having a high proportion of balances to credit limits on your credit accounts or loans has a negative impact on your credit score.(TQ)

Your report shows one or more inquiries on file. Each time a potential lender pulls your credit report for review, an inquiry is placed on your file. While having inquiries on file does affect your score, the impact is minimal.(Q0)

Now I don’t get this: my credit card utilization is LOW, how how can they say “Your report shows that the ratio of balances-to-credit-limits across your open credit accounts or loans is too high”? How can they say the sum of my balances is high?

I have 2.5k debt with around 60k total credit available. It’s been this way for a while too. I sold my house couple months ago so that got rid of my mortgage. Could this affect it in any way?
Judy, did you even read my question? The whole thing? The end of it? Where I say I have 2.5k debt with 60k credit available?

4 Comments
  1. Reply
    Judy
    January 30, 2011 at 2:30 am

    Don’t sweat the real estate loans.
    This is just 10% of your credit rating.

    Credit cards:
    Any time you use more than 30% of your available credit limits you are greatly reducing your score.
    This is why it is best to – PAY IN FULL EACH MONTH.
    Never carry any balances – never pay any interest.
    Paying in full will get you to the top levels.

    Available credit too low:
    Again, you must be carrying credit card balances – cut that out.
    Stop playing games with credit cards – and start paying in full each month.

    Inquiries – only count for 1 or 2 points for reports – max 5 points for one card.
    Don’t sweat this. It will stay on your credit report for 2 years – affect the score for one year

    The mortgage will stay in your reports as long as you do not delete the item.
    Even if it is paid off – it will affect the reports positively.

    I would lower your available credit on some of your credit cards.
    Mine are just about the amount where I know I won’t use more than 30% of the limits.
    /

  2. Reply
    bdancer222
    January 30, 2011 at 3:17 am

    I wouldn’t worry too much about a Vantage score. It’s only half a step better than the Fakko scores the third party monitoring services give you. Creditors use FICO.

    Secondly, the analysis of credit reports is often very general and list potential areas that could impact your score. They don’t necessarily apply to you. It makes it confusing.

  3. Reply
    tudorjason
    January 30, 2011 at 3:51 am

    Everyone’s credit history is different, so it’s difficult to really pinpoint the issue.

    But from reading the line below, it makes sense after you said you got rid of your mortgage:

    “Having a high proportion of balances to credit limits on your credit accounts or loans has a negative impact on your credit score.”

    Literally, your utilization has increased because you no longer have a mortgage. However, I personally wouldn’t agree that your utilization hasn’t increased too much because your limit on credit cards is really high.

    But that’s my guess.

  4. Reply
    Ted
    January 30, 2011 at 3:52 am

    Don’t worry about it. Your score is great.

    I’m in the same position. If your score is not 990 then they are required to give you a list of ways to improve your score. Any utilization is higher than zero. If you had higher limits you would get points.

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