What is a SageStream Credit Score?

When you think about your credit score, it’s usually the FICO credit score, one of our nation’s most widely used credit scores. If someone says “credit score,” they usually mean this one.

From time to time, you’ll see companies refer to VantageScore, the scoring algorithm and number created in 2006 by the three major credit bureaus – Equifax, Experian, and Transunion.

While those two may be the most notable, they’re not the only credit scores. The three bureaus are also not the only reporting agencies out there – all of which are under the purview of the Fair Credit Reporting Act.

One such reporting agency is SageStream.

What Is SageStream?

SageStream is a credit reporting agency similar to TransUnion, Equifax, and Experian. Some organizations, such as banks and insurance companies, may use SageStream to determine a potential customer’s creditworthiness.

How SageStream Calculates Your SageStream (or Credit Optics) Score

Although the SageStream site is vague about determining your score, we know that they focus on factors other than credit and debt, such as how well you pay your bills. For instance, SageStream might look at your performance history on items such as:

• Rent payments
• Utility accounts
• Wireless accounts
• Your bank accounts

And similar accounts to get a deep dive into how you manage your money as a whole. Again, the company is vague about its scoring system, but we do know they don’t focus as much on credit accounts as they do on other money management records.

What Is a Good SageStream Score?

SageStream account ratings range from 001 to 999. And although the site doesn’t say what a “good” score is, we can assume that the higher your score, the better.  I realize that doesn’t give you much help. Contacting SageStream directly may help you answer this question, although online reviewers have noted not having much luck with that route.

How Agencies Calculate Your FICO Score

On the contrary, FICO is quite transparent about calculating its score. Your FICO score is weighted on five different factors relating to how you handle credit and debt:

• Your payment history:    35%
• Amounts you owe: 30%
• Length of credit history: 15%
• New credit accounts: 10%
• Your mix of credit accounts: 10%

This transparency helps you to know how to manage your credit in a way that can optimize your FICO score. 

You can ensure your FICO score stays on the higher end by keeping your balances low (under 50%), paying your payments on time, keeping credit cards for long periods, minimizing new account openings, and having a balanced mix of credit cards vs. loans.

And you’ll know what the higher end is because FICO is clear about that also.

Note: FICO also uses what is called a VantageScore. FICO scores are different for all “big three” credit bureaus. Your VantageScore is a compilation of all three FICO scores. 

What is a Good FICO Score?

FICO is forthcoming about what a good credit score is and isn’t. The company publishes this information quite widely.

FICO uses a range of 300-850 for most scoring models. The rating tied to a score is dependent on where it lands in that range:

• <580: Poor
• 580-669: Fair
• 670-739: Good
• 740-799: Very Good
• 800 and up: Excellent

To help you qualify for most types of debt, you’ll want to have a FICO score of 670 or above. However, some lenders might approve your credit request with a lower score.

Now that you know a little bit about how SageStream scores are calculated, you may be curious which companies are using SageStream to decide whether you’re approved for an account.

Which Companies Use SageStream?

We know from our research that banks such as Ally and Bank of America are using SageStream to determine a potential customer’s creditworthiness. 

The SageStream website talks about using your score to send to banks and insurers. This means that insurance companies may use SageStream to determine whether or not they’ll insure you and, if so, what rates they’ll charge.

The website also provides information to credit card issuers, retailers, and wireless service providers.

You can also expect auto loan lenders to potentially use a SageStream score to determine your creditworthiness.

What Should I Do if I’m Denied a Loan Due to My SageStream Score?

If you are denied a loan, insurance policy, or bank account due to your SageStream score, you can contact SageStream directly to find out why.

You can also contact the company and get a free copy of your SageStream report. To get your free report, you need to provide SageStream with the following information:

• Your name
• Date of birth
• Address
• Phone number
• Copy of a government-issued ID

You may also be asked for other supporting documents to prove your identity. Expect it to take at least two weeks to receive your report in the mail. 

Can I Opt-Out of SageStream?

It’s important too to know that you can opt-out of SageStream. However, it’s important to know what opting out with SageStream will accomplish.

Using SageStream’s Opt-Out system will prevent them from sharing your name with creditors, insurers, and other companies that want to send you offers. However, as with the big three credit bureaus, you can put a security freeze on your SageStream account. 

As with the big three, putting a security freeze on your SageStream account will prevent any company from seeing your SageStream report unless SageStream gets direct permission from you.

Putting a security freeze on your SageStream account might be the best way to prevent companies from using the score to determine approval for services. However, the company could simply deny you altogether because you have a security freeze on your account. 

So, in a way, your hands may be tied. Your best bet for achieving and maintaining a high SageStream score is to ensure all your bills are managed properly and paid on time.

One way to do this is to create a simple budget and use it regularly to avoid late payments and debt overload. Use a good budgeting software program to create a budget that works for you.  

Final Thoughts on SageStream

SageStream is a credit reporting agency that primarily provides reporting services to millennials to help companies determine creditworthiness.

The company’s goal is to provide credit reporting on individuals with sparse credit records. However, SageStream’s criteria for determining your SageStream score aren’t clear. This could lead to you being denied credit based on a score you know little about and have little idea how to raise. 

If you are even denied credit or service due to your SageStream score, contact SageStream right away to get more information and a copy of your SageStream report.