[TexasGator]

Too lazy to do research?

[Tell It Right]

I've tried many times to find the exact algorithm used by the credit agencies to calculate someone's credit scores. They keep a tight lid on it.

At best you can find are vague suggestions (pay bills on time, lower credit utilization, lower debt to income ratio, increase net worth, etc.) with no real calculation on how much each of these impact the scores or if other factors are included in the real calculations.

For example, let's say you have an extra $100 per month in your budget and you want to use that to increase your credit score. Would it be better to invest it (which increases your net worth) or pay off a debt (which lowers your debt to income ratio)? If the interest on your debt is low (i.e. a refinanced mortgage) you increase your net worth more by investing that $100 vs paying more on the debt (averaging a return much higher from investing than the interest rate of the mortgage). That'll improve your credit score, but maybe not as much as lowering the debt would if the debt-to-income ratio has a higher weight in the credit score calculation.

And who knows what else is in the credit score calculation? With the way Dims run things I wouldn't be surprised if there are ESG type factors.

[House Atreides]

“Too lazy to do research?”
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It’s in “Chat”. No need for unsolicited snark. If you don’t want to chat about the presented subject feel free to move on. There’s already too much unkindness in the world.

[devane617]

forget to switch id’s, hum and gum?

“Too lazy to do research?”