5 ms·

How do my parent's credit history have anything to do with my credit history in the US? Are you talking about co-signing for loans or possibly how a child can

How do my parent's credit history have anything to do with my credit history in the US? Are you talking about co-signing for loans or possibly how a child can get a card under their parents' name? I didn't think either of those had any impact on the child's credit score.

TeMPOraL 10y ago
Given what I hear about US banks, this seems like a most obvious variable to include in computing the credit score. Which leads me to my question - is there an official/exhaustive list of what exactly is considered and how, or is that a banking secret?
- superuser2 10y ago
  The factors are, in decreasing order of weight: - Credit card utilization (balance as a percentage of available credit at last statement close) - On-time payments (you just have to pay the minimum required by the date specified for it to count) - Derogatory marks (collections, bankruptcies, foreclosures and liens) - Average age of accounts (this favors older people who have been using credit a long time but not opening a lot of accounts recently) - Total number of accounts (also rewards a mixture of types - car, student, credit card, mortgage, etc) - Hard inquiries (very slightly dings your score if you're currently looking for credit, punishes you harder if you're desperately applying to everything you can find because this indicates financial emergency and therefore high risk). https://www.creditkarma.com/article/credit-score-factors https://www.creditkarma.com/article/credit-score-factors If you use CreditKarma, it'll explain all this and how the values on your credit report fit in to the averages.
- nommm-nommm 10y ago
  The exact FICO algorithm is proprietary. They do give some information about what it entails. I am in no way affiliated with freecreditreport.com, it's just a site I find incredibly useful. It's now owned by Experian and it gives you your Experian FICO 8 credit score. They break down each part of your credit score and grade you on each. (A-F) There's other sites like credit karma that do similar but they use vantage score which is also known as FAKO score and isn't used by lenders but is a good indication of what your FICO score may be.
superuser2 10y ago
Being an authorized user on a parent's credit card does build credit history for the child. I did not have that, or any cosigned loan.
- ThomPete 10y ago
  But you are an american right? You spent your whole life in the US? So you have a history with a bank I am assuming. I don't understand exactly why I am being down-voted. The system is at it is it's not something I made up.
  - saryant 10y ago
    Retail banking history is not a factor in credit scores.
    - ThomPete 10y ago
      I am well aware of that and I never claimed it did. I wasn't talking about credit history but about history as in, a customer in a bank for years. These are also factors for how easy/hard things like this is.
      - saryant 10y ago
        Having a history with a bank has no impact whatsoever on your credit report.
        ThomPete 10y ago
        This has nothing to do with your credit report or your credit history. This has to do with your chance of getting a credit card to begin with. There is a difference between being a US citizen having had bank account most of your life and then being a foreigner who just got yours. Not sure why you keep insisting I am saying something else than I am.
        10y ago
ThomPete 10y ago
You and your parents history in the US in general can have a an affect on whether you can convince a bank to give you a credit card or not not on the credit score. I am not talking about credit card history but about history of being a US citizen, having a bank account etc. I think a lot here are missing the point. The question is not about your credit score but about getting the credit card to begin with. Once you get the card they assign you a credit score but in order to get it you have to start building debt (and as a foreigner I had to do that with my own money)
- Broken_Hippo 10y ago
  Ok, here is the thing. Your parents credit score doesn't affect yours. At all. IT doesn't help you get a credit card, nor bank accounts. Unless: Someone has them cosign for a loan or credit card. This is somewhat common with a first car loan or some student loans, but less common with credit cards. They won't be able to do that if they have a low score. Otherwise, you are basically on your own. The credit stuff you would have experienced coming here is what many 18-year olds hav to deal with. Some older women find themselves in a similar position - the accounts were all in their husband's name.
  - sithadmin 10y ago
    >Your parents credit score doesn't affect yours. At all. IT doesn't help you get a credit card, nor bank accounts. Perhaps one's parents can't help in any formal way, but for me, my parents' creditworthiness and relationship with a local bank helped get me my first credit card. Right before I left home for college, I applied for a credit card with my local bank, and was initially declined. When I asked for reconsideration by the branch manager, he looked into the situation and indicated that he couldn't do anything to assist. When my mother found out I was declined, she took me back to the branch, and asked the branch manger to reconsider the credit decision. Upon a review of my parents' standing with the bank, the branch manager overrode the previous decision and I was given a Visa card with a moderate ($1000 USD) limit. My mother wasn't even asked to co-sign on the account, provide any kind of guarantee, or be associated with the credit card in any way.

TeMPOraL 10y ago

Given what I hear about US banks, this seems like a most obvious variable to include in computing the credit score. Which leads me to my question - is there an official/exhaustive list of what exactly is considered and how, or is that a banking secret?

superuser2 10y ago
The factors are, in decreasing order of weight: - Credit card utilization (balance as a percentage of available credit at last statement close) - On-time payments (you just have to pay the minimum required by the date specified for it to count) - Derogatory marks (collections, bankruptcies, foreclosures and liens) - Average age of accounts (this favors older people who have been using credit a long time but not opening a lot of accounts recently) - Total number of accounts (also rewards a mixture of types - car, student, credit card, mortgage, etc) - Hard inquiries (very slightly dings your score if you're currently looking for credit, punishes you harder if you're desperately applying to everything you can find because this indicates financial emergency and therefore high risk). https://www.creditkarma.com/article/credit-score-factors https://www.creditkarma.com/article/credit-score-factors If you use CreditKarma, it'll explain all this and how the values on your credit report fit in to the averages.
nommm-nommm 10y ago
The exact FICO algorithm is proprietary. They do give some information about what it entails. I am in no way affiliated with freecreditreport.com, it's just a site I find incredibly useful. It's now owned by Experian and it gives you your Experian FICO 8 credit score. They break down each part of your credit score and grade you on each. (A-F) There's other sites like credit karma that do similar but they use vantage score which is also known as FAKO score and isn't used by lenders but is a good indication of what your FICO score may be.

superuser2 10y ago

Being an authorized user on a parent's credit card does build credit history for the child. I did not have that, or any cosigned loan.

ThomPete 10y ago
But you are an american right? You spent your whole life in the US? So you have a history with a bank I am assuming. I don't understand exactly why I am being down-voted. The system is at it is it's not something I made up.
- saryant 10y ago
  Retail banking history is not a factor in credit scores.
  - ThomPete 10y ago
    I am well aware of that and I never claimed it did. I wasn't talking about credit history but about history as in, a customer in a bank for years. These are also factors for how easy/hard things like this is.
    - saryant 10y ago
      Having a history with a bank has no impact whatsoever on your credit report.
      - ThomPete 10y ago
        This has nothing to do with your credit report or your credit history. This has to do with your chance of getting a credit card to begin with. There is a difference between being a US citizen having had bank account most of your life and then being a foreigner who just got yours. Not sure why you keep insisting I am saying something else than I am.
        10y ago

ThomPete 10y ago

You and your parents history in the US in general can have a an affect on whether you can convince a bank to give you a credit card or not not on the credit score. I am not talking about credit card history but about history of being a US citizen, having a bank account etc. I think a lot here are missing the point. The question is not about your credit score but about getting the credit card to begin with. Once you get the card they assign you a credit score but in order to get it you have to start building debt (and as a foreigner I had to do that with my own money)

Broken_Hippo 10y ago
Ok, here is the thing. Your parents credit score doesn't affect yours. At all. IT doesn't help you get a credit card, nor bank accounts. Unless: Someone has them cosign for a loan or credit card. This is somewhat common with a first car loan or some student loans, but less common with credit cards. They won't be able to do that if they have a low score. Otherwise, you are basically on your own. The credit stuff you would have experienced coming here is what many 18-year olds hav to deal with. Some older women find themselves in a similar position - the accounts were all in their husband's name.
- sithadmin 10y ago
  >Your parents credit score doesn't affect yours. At all. IT doesn't help you get a credit card, nor bank accounts. Perhaps one's parents can't help in any formal way, but for me, my parents' creditworthiness and relationship with a local bank helped get me my first credit card. Right before I left home for college, I applied for a credit card with my local bank, and was initially declined. When I asked for reconsideration by the branch manager, he looked into the situation and indicated that he couldn't do anything to assist. When my mother found out I was declined, she took me back to the branch, and asked the branch manger to reconsider the credit decision. Upon a review of my parents' standing with the bank, the branch manager overrode the previous decision and I was given a Visa card with a moderate ($1000 USD) limit. My mother wasn't even asked to co-sign on the account, provide any kind of guarantee, or be associated with the credit card in any way.