Re: Re: Re: Conspiracy theorists unite! It's a paid off installment loan. I also realize that it "should" only make it lower if there is derogatory information... but I won't know because I don't want to lose that tradeline. She paid 30 days late twice :\ In the same letter as the address change request I also outline a goodwill request for deletion. I doubt they will help, but essentially since I was kicked out at 18 and she kept my car (it was supposed to be her cosigning for me but it worked out the other way), citing protection of her credit, I'm asking them to help me out. They've refused once before... But unless I ask, it'll never happen.
Re: Re: Re: Conspiracy theorists unite! Do you have a copy of all three credit reports? Not the online ones from all three bureaus, but a separate, mailed copy from each of the CRAs? If not, request them now. They show more information than the online ones do.
Re: Re: Re: Conspiracy theorists unite! Do credit scores actually work? Not really. If the purpose of scoring is to prevent defaults or improve access to credit they have failed miserably. As the scoring fad became popular bankruptcies and home mortgage defaults shot off the chart. (The best economy in US history has not stemmed this tide.) Promises by credit report/score salesman that scoring would make it easier for millions of "marginal" applicants to get credit also proved false. Not too long ago credit reports and scoring were touted as a way to speed up credit approval. Now home buyers spend more time arguing with credit bureaus then selecting a home. A-50-C
Anyone who has ever worked in risk analysis knows that it's just that--a RISK based on STATISTICS of a population Hedwig --------------------------------------- And what determines the accuracy of the risk prediction?
Re: Re: Re: Re: Conspiracy theorists unite! The reason bankruptcies and home mortgage defaults shot off the chart has nothing to do with credit scoring, but rather the fact that there was a HUGE market in these subprime people where lenders could make billions. Think about it. Someone with bad credit realizes that they will have to make sacrifices in order to borrow the money that they want, so they will pay higher interest. They will pay higher fees. They are likely to be late, so all these lenders have to do is throw in a $50 late fee and their interest rate just increased by a large margin because it's likely that these people will end up running into that. Now looking at this, one could place blame on the lenders for letting people get in over their head - but I place blame on the consumer who gets in over their head. I can't blame a lender who charges someone more because they are chronic late pays, or because they have a history of not sticking to their word and paying back their debts. I wouldn't want to deal with someone like that without charging a lot more to make up for my risk when I could deal with someone who's never been late. In this respect, credit scores are a good thing. Everyone should be responsible for their actions - the credit scores do this for consumers. That said, the lenders and CRAs need some accountability too. People need to understand that just because they can afford the payment does not mean they can afford the total price. In summary, I don't blame credit scores. I blame lenders and consumers equally. The lenders try to cash in on a big market, and the consumers are dumb enough to let them.
Re: Re: Re: Re: Conspiracy theorists unite! The reason bankruptcies and home mortgage defaults shot off the chart has nothing to do with credit scoring, but rather the fact that there was a HUGE market in these subprime people where lenders could make billions. Think about it. Someone with bad credit realizes that they will have to make sacrifices in order to borrow the money that they want, so they will pay higher interest. They will pay higher fees. They are likely to be late, so all these lenders have to do is throw in a $50 late fee and their interest rate just increased by a large margin because it's likely that these people will end up running into that. Now looking at this, one could place blame on the lenders for letting people get in over their head - but I place blame on the consumer who gets in over their head. I can't blame a lender who charges someone more because they are chronic late pays, or because they have a history of not sticking to their word and paying back their debts. I wouldn't want to deal with someone like that without charging a lot more to make up for my risk when I could deal with someone who's never been late. In this respect, credit scores are a good thing. Everyone should be responsible for their actions - the credit scores do this for consumers. That said, the lenders and CRAs need some accountability too. People need to understand that just because they can afford the payment does not mean they can afford the total price. In summary, I don't blame credit scores. I blame lenders and consumers equally. The lenders try to cash in on a big market, and the consumers are dumb enough to let them.
Re: Re: Re: Re: Conspiracy theorists unite! The reason bankruptcies and home mortgage defaults shot off the chart has nothing to do with credit scoring, but rather the fact that there was a HUGE market in these subprime people where lenders could make billions. Think about it. Someone with bad credit realizes that they will have to make sacrifices in order to borrow the money that they want, so they will pay higher interest. They will pay higher fees. They are likely to be late, so all these lenders have to do is throw in a $50 late fee and their interest rate just increased by a large margin because it's likely that these people will end up running into that. Now looking at this, one could place blame on the lenders for letting people get in over their head - but I place blame on the consumer who gets in over their head. I can't blame a lender who charges someone more because they are chronic late pays, or because they have a history of not sticking to their word and paying back their debts. I wouldn't want to deal with someone like that without charging a lot more to make up for my risk when I could deal with someone who's never been late. In this respect, credit scores are a good thing. Everyone should be responsible for their actions - the credit scores do this for consumers. That said, the lenders and CRAs need some accountability too. People need to understand that just because they can afford the payment does not mean they can afford the total price. In summary, I don't blame credit scores. I blame lenders and consumers equally. The lenders try to cash in on a big market, and the consumers are dumb enough to let them.
Re: Re: Conspiracy theorists unite! Experience and history. It's not really a stretch to say that someone who has a history of not paying off a single account he has has a higher risk of doing it again than someone who has paid every debt he's ever owed.
Re: Re: Conspiracy theorists unite! Anbro - Just for argument sake. Credit scores are not good, because there is a TON of incorrect and innaccurate info on credit reports. There was a survey completed recently and over 50% of the individuals had inaccurate information on their report, thus their score is inaccurate. Some CRA's refuse to remove addy's even though you never lived there or had mail there. The system is seriously flawed, and it affects those who pay all their debts ontime too. I appreciate your insight though on this forum.
Re: Re: Re: Conspiracy theorists unite! I agree that when you take into account inaccuracies, credit scores become a bad thing. Credit scores in and of themselves are a perfectly fine thing, however - in my personal opinion. If I pay all my bills on time and work hard to make sure my creditors always get their money, their interest, and that it all happens on time, I would hope that they would give me more favorable terms than someone who cheats them constantly, gets into debt over his head, borrows $10k from one creditor, decides not to pay it back, borrows another $10k from another creditor, doesn't pay that back either... all while I'm paying back my first $10k. So - the solution, in my opinion anyway, is not to abolish credit scores, but to publicize the actual equation. Then, reform the system whereby we dispute things on our credit report. Put a lot more oversight on the CRAs with an emphasis on accurate information. Fine them heavily when you can prove inaccuracy. I'm not talking little $1k violations. I'm talking enough that it's just not worth risking it. Standardize the method by which companies record and propogate information to the credit bureaus. Make it public. No secret forms. No secret databases. No scores based on information that we don't even know they have. I could probably go on for a couple hours. But scores in and of themselves aren't a bad thing. The CRAs and crooked creditors and CAs make it a bad thing.
: Conspiracy theorists unite! That's what I've been trying to tell ya and others reporting and scoring is akin to issuing sub machine guns to the Mafia. Reporting and scoring left soley in their hands is letting the fox guard the hen house so to speak. If they cant handle it ethically responsibility fairly and correctly they don't deserve it just like you say deadbeats who habitually skip out on their obligations don't deserve credit.
Re: : Conspiracy theorists unite! Agreed, but the solution isn't to abolish credit scoring - that just attacks a symptom, not the root problem.
Re: Re: Re: Re: Conspiracy theorists unite! But you make a good point. People don't look at totals, they try to look at the payments and see if they can afford it. Are you paying $25K for a $10K car? NO PROBLEM--I can afford the payments! Until something goes wrong--illness, job loss, etc and the money isn't there. Can't even refinance--who will loan you twice the value of the car? Same goes with houses. You can't count on appreciation. The market is cyclical. At some point it will go down. Maybe that's when you need the money. And what about getting things because you WANT them (as opposed to need). Use them, still not paid for, and nothing left. Consumers are at fault for not controlling their spending, lenders are at fault for pushing people above their means. I worked with a real estate agent when I bought my first house who told me that he wouldn't show me anything that cost more than the range I gave him. He said some agents push you for that little bit extra, telling you how values and salaries will go up. Then they buy the house, and something goes wrong with it, and they're stretched so thin that they can't afford the repairs. And I've notices and seen it happen many times.
Re: Re: Re: : Conspiracy theorists unite! Not sure what you're referring to by old system. Back when we couldn't see our own scores? Or farther back? I'm 23, btw. So probably too young.
