Just read this interesting article on the web which discusses possible new legislature this year. I'm sure it will be stiffled by the Powers That Be!!! SCHUMER: SECRET CREDIT RATINGS CAUSE MILLIONS TO PAY HIGHER MORTGAGE RATES Schumer Bill Would Require Credit Rating Companies to Provide Consumers with Detailed Credit Score Information; Could Save Homeowners More than $100 Million Yearly New Technology Easily Allows Consumers to See Credit Rating Millions of Americans pay more in interest for home loans than they should because they are unaware of their credit score, US Senator Charles E. Schumer said today. Schumer announced that he and Senator Wayne Allard (R-CO) are introducing the Consumer Credit Score Disclosure Act of 2003, a bill that would require mortgage lenders and credit reporting agencies to provide consumers with full disclosure of their credit score and any information regarding their credit behavior that may negatively impact their score. Schumer said the legislation will help middle class consumers improve their credit, increase homeownership, protect consumers from usurious interest rates and save millions of borrowers over one hundred dollars a month in mortgage payments. â??For most families, obtaining a home loan is the biggest financial move they will ever make. Yet the credit score, which is the principle factor in determining an individualâ??s credit worthiness and the loan terms they receive, is shrouded in mystery,â? Schumer said. â??This legislation will lift the veil of secrecy over credit scores and create greater opportunity for securing a home mortgage at considerably less expense.â? Nearly 80% of all mortgage lending decisions now use credit scores as the primary determinant of an individualâ??s credit risk, according to E-LOAN, an Internet mortgage company that would like to see the mortgage application process become more open. Specifically, lenders use the score to determine whether to extend a loan to an applicant and to make pricing decisions regarding the rates and terms of the loan. According to the Federal Home Loan Mortgage Corporation (Freddie Mac), as many as one-third of all borrowers who obtain loans from expensive subprime lenders have credit scores that would make them eligible for a â??primeâ? rate, or lower cost loan, from a conventional bank. Under this calculation, nearly one third of the 1,137,019 Americans across the country who took out high priced subprime loans in 1999 could have obtained a loan at considerably less expense. A typical reputable subprime lender may charge three percentage points more than a conventional bank lender. On a modest mortgage of $90,000, for example, shaving three percentage points from a loan would save homeowners $160 per month, or over $1,900 a year on lower mortgage costs had they known that their credit score was strong enough to secure better loan terms. Freddie Mac estimates that consumers nationwide overspend on their mortgage by $100 million each year because they are paying rates which are higher than their credit score warrants. â??Itâ??s wrong that the lender has all of the knowledge and the consumer is left in the dark. Now that the technology is available, consumers should be allowed to see instantaneously what their credit rating is and how it is determined. Consumers need to access to the same information lenders and credit reporting agencies use so that they can make wiser decisions that will improve their credit score,â? said Schumer. Schumer pointed out that a number of Internet companies, including E-LOAN, offer a free, web-based service that allows real estate agents, bankers, and consumers to instantly determine their credit rating. In addition to an instant credit score, consumers receive a credit score analysis that helps them identify and understand actions they can take to improve their score. The leading credit scoring firm of Fair Isaacs and Company listed for the first time the five factors it uses to determine a personâ??s credit score: â?¢ timely payments (35% of score), â?¢ amount and type of outstanding debt (30% of score), â?¢ length of credit history (15% of score), â?¢ number of credit cards and number of recently opened credit accounts (10% of score), â?¢ mix of credit accounts, such as department store credit cards, regular credit cards, margin accounts, etc. (10% of score). The Schumer-Allard bill would require all lenders to supply consumers with their credit score along with an invoice that describes how their score was calculated. It would end the practice by credit reporting agencies of writing contractual clauses that bar lenders from disclosing to consumers their credit scores. The National Association of Realtors and Consumers Union both support the legislation. Schumer and Allard will attempt to include this legislation in the larger FCRA re-authorization package scheduled to go through the banking committee later on this year.
lenders use (abuse )the score when make pricing decisions regarding the rates and terms of the loan. ================ The Score based pricing sham should be outlawed period. The bogus score has nothing what so ever to do with the value of the product. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""''' PS: ***Scoring is a shell game.*** Read all about it here http://members.aol.com/victcrdrpt/Score.html
Whatever happend to relationship banking. The only thing I like about FICO is with any system you can manipulate it.
1*The only thing I like about FICO is as with any system you can manipulate it. 8004me ============= 1*No, you can't. You just think you can. It's rigged to bite you in the butt no matter what you do or don't do. Get the lowdown on the racket here. http://members.aol.com/victcrdrpt/Score.html
Re: Re: Credit Score Mystery That is exactly why I like FICO, you can manipulate it. If a lender read my reports without a FICO score, I wouldn't be in as good of credit shape as I am now. Would a better choice be no FICO or score at all? I would say no in my personal situation.
1*â??Itâ??s wrong that the lender has all of the knowledge and the consumer is left in the dark. 2*Consumers need access to the same information lenders and credit reporting agencies use so that they can make wiser decisions that will improve their credit score,â? said Schumer. 3*Schumer and Allard will attempt to include this legislation in the larger FCRA re-authorization package scheduled to go through the banking committee later on this year ==============************============**********============ 1*Not surprising since FICO was intended to create the dark. 2*Which is exactly what they don't want. 3*It ain't enough - kill the mad dog.
Re: Re: Re: Credit Score Mystery 1*No, you can't. You just think you can. It's rigged to bite you in the butt no matter what you do or don't do. Get the lowdown on the racket here. http://members.aol.com/victcrdrpt/Score.html
Re: Re: Re: Re: Credit Score Mystery I have, I can, and I will. Trust me on this one, these FICO points from the 400's did not just magicly appear. I have probably pulled at least as many FICO reports as anyone and have played with them and the simulators hours upon hours. Anyone can do it! Instead of giving up on FICO and saying FICO is a joke, maybe you should try to learn how it works. I agree the whole Fair Isacc idea with credit reports and other things being scored could get out of line some day. Here are some things maybe Fair Isacc may get into if they have not already started a FICO score on A criminal history FICO score Medical history FICO score All different insurance FICO score on and on and on we would all be scored on everything and anything. Maybe a dinner buffet would charge different prices someday and we would have to give some kind of a score that Fair Isacc would come up with determining how much we eat. $7.95 FICO score xxx-xxx $10.95 FICO score xxx-xxx $14.95 FICO score xxx-xxx Maybe if I want to return something to the store someday I will have a FICO score for returning items? Will everything be as-is no refund at that point if the FICO score is low enough? I mean how far is this going to go? How many times can you post FICO is a joke or whatever? Wait I know, I received so many extra FICO points because I am so stupid that I have paid over $1000 for these FICO reports. I bet Fair Isacc loves that, right? I'm sorry here but I am really fed up with putting in some time to ask questions or helping others with raising FICO scores, and then the thread is ruined with FICO is a joke or whatever. I guess either the credit report has negative information or all positive information. Who needs FICO right? Unreal!
Re: Re: Re: Credit Score Mystery lb, you can manipulate your FICO score, for instance: 1) Become an AU on someone's cc's, could really boost your scores by taking their positive history and adding to yours 2) Doing a secured loan would boost your score in time, which is usually done for the sole purpose of increasing your FICO 3) Decreasing your balances to intentionally increase your scores 4) Completely avoiding applying for new credit so you don't lose any points due to inquiries (remember B**) or staggering your new account to be opened so you don't take a hit on "new account" or "history" 5) Negotiating through settlment for deletion or even goodwill adjustment by creditors will increase your score 6) Establishing the "RIGHT MIX" of accounts will increase your score All of these are things a lot of us have done or still do, wouldn't you say that is manipulating your credit scores?
Re: Re: Re: Credit Score Mystery Exactly cinderalla, forgot one important one, great post though. (7) Pay every bill on time from now on and don't be late EVER! The only reason I even post these scores is to show that it can be done with time and work. I still feel like I have a long way to go but these results are actually very reasonable over time. lbrown59, Are my scores going to tank to the 500's soon by keeping my overall balances under $100? I would love to hear your expert FICO advise on this! Is it really designed to bite me in the butt?
Re: Re: Re: Credit Score Mystery Vick 71 make a good point. Perhaps the future is filled with judging good people who have been through tough times by a score. If you would have judged the college dropout - Michael Dell of Dell Computers - based on a score of dreamers who think they can become successful by not following the status quo then you would assume - just based on that score - that investing in Dell would not be a wise decision...of course we now wish we would have invested. It is quite unfortunate that we must rely on a score that the wizard of oz has created and no one claims to understand and that we must be be judged by. In the mean time we will manipulate the scores and the system by any means necessary to avoid the wrath of the score masters.
Re: Re: Re: Credit Score Mystery My favorite is decrease balances by using hidden lines of credit or manipulating so that on those creditors that reports the statement balance report a low amount. There are many many ways to make FICO work for you.
Re: Re: Re: Credit Score Mystery Thanks J.Vick. While I think FICO may be unfair in some instances, it is more unfair to those who don't know how to work it. FICO is more predictable than unpredictable, at least to us, IMHO.
Re: Re: Re: Re: Credit Score Mystery Can someone please translate to me what lbrown59 just said? I am beyond confused here.
Re: Re: Re: Re: Credit Score Mystery A donkey had an IQ of 186. He had no friends at all though. Even in the animal kingdom, nobody likes a smart-ass. Government Waste is a Terrible Thing to Mind ***FICO FARCE*** http://members.aol.com/victcrdrpt/Score.html
Here is how Fico works: A bag of marbles represents the consumer. CRA 1 shows 25 red marbles in the bag. CRA 2 reports 25 blue marbles in the sack CRA 3 Says 25 Green marbles in the bag. FICO analyzes the information from all three of the CRAS and assigns a score of 75 to the sack made up of 25 each of red blue and green marbles. Upon opening the sack we find it contains 100 black marbles. Why was Fico unable to assign the correct score? THE END ** *** ** LB 59 """""""""```~~~```'""""""""" """"""""""""""""""""""""""""""""""
