Is it possible for credit score to skip from zero points to 673 points?

Question

I have been having zero credit for long time.. Have had 2 credit cards which I've used all the limit and pay finance charges only, 13 inquiries in 12 months... I use a credit monitoring service and they suddenly sent me a quartely update showing 673 as my score.. Is this reasonable?

Answer 1

Well you do have credit cards so yes. I think its right.

Answer 2

Do you mean no credit? It's odd, actually... to be able to calculate a credit score, you'd need to have at least 6 months of credit history. I'm surprised that you didn't have enough information to have a score at the 6 or 9 month marks.

But 673 sounds like a reasonable score. I'd suggest that you start paying more than the minimum payment if you wish to increase your score. Maxing out your cards is a bad thing to do and if you pay them down so that you're only using 30% of your available credit, it'll improve your score. If you get that number down to 20%, it'll improve even greater.

Odds are that the inquiries are soft and are not affecting your score (unless you've been looking for credit or someone else has been using your name to do the same).

Answer 3

It's certainly possible. The credit score is generated at the moment the report is pulled. It is not something that slowly grows, it is simply a number generated when the information about you is run through the credit repository's algorhythym.

Remember, a credit score is a number that represents the likelihood that you will default. Thus, the information the credit bureau has on you shows that you are starting to demonstrate the ability to manage your credit obligations, thereby lessening the likelihood of default.

As you get more information in your file, or the tradelines you have get older or "seasoned", you are likely to see those scores improve as well.

Answer 4

Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely guarded secrets, the Fair Isaac Corporation has disclosed the following components and the approximate weighted contribution of each:

35% - punctuality of payment in the past (only includes payments later than 30 days past due)
30% - the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% - length of credit history
10% - types of credit used (installment, revolving, consumer finance)
10% - recent search for credit and/or amount of credit obtained recently
The above percentages provide very limited guidance in understanding a credit score. For example, the 10% of the score allocated to "types of credit used" is undefined, leaving consumers unaware what type of credit mix to pursue. "Length of credit history" is also a murky concept; it consists of multiple factors - two being the oldest account open and the average length of time an account has been open. Although only 35% is attributed to punctuality, if a consumer is substantially late on numerous accounts, his score will fall far more than 35%. Bankruptcies, foreclosures, and judgments affect scores substantially, but are not included in the somewhat simplistic pie chart provided by Fair Isaac.

Current income and employment history do not influence the FICO score, but they are weighed when applying for credit. For instance, an unemployed individual with no other sources of income will not usually be approved for a home mortgage, regardless of his or her FICO score.

There are other special factors which can weigh on the FICO score.

Any monies owed because of a court judgment, tax lien, or similar carry an additional negative penalty, especially when recent.
Having more than a certain number of consumer finance credit accounts also carries a negative weight (critics say that this causes a vicious cycle, locking people into continuing to use consumer finance companies).
The number of recent credit checks also can weigh down the score, although credit agencies usually claim to allow for credit checks made within a certain window of time to not aggregate, so as to allow the consumer to shop around for rates.

Answer 5

if they sent it to u, than yes