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Originally Posted by Cube Inmate
I've recently read that the ultra-secret scoring system can tell the difference between making multiple credit applications because you *need* lots of credit (bad) and shopping around (not bad). Are you privy to the details of the scoring system(s), or are you just assuming?
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I'm not assuming. I'm a financial planner and I refer lots of clients to a mortgage broker that I trust and respect. She's explained this to me. Average credit (called beacon) score is approximately 650, with a max of around 900 (not sure of the numbers). A low score of ~500 or so is very bad news and you'll pay higher rates.
Many things damage your credit score. If you have certain credit cards (dept store cards) and you're even one day late it shows up on your score. Another that damages your score is the number of credit checks on your record. That's why I advised folks on here not to shop around for a mortgage. If you go to six banks for quotes, all six do credit cheques and these show up on your record and it reduces your score.
Hint: You know those booths you see at malls for free t-shirt if you apply for a credit card? Don't do it. They check your credit rating and it affects your score.
Okay?