I was driving home last night and remembered what some FICO representative said in an interview a couple of years ago. He was asked why FICO did not reveal their scoring model. Simply put, he said that people would then try to manipulate the system. The interviewer then said: 'wouldn't manipulating their credit mean they were actually improving their credit usage and being wiser consumers?' The FICO guru then squirmed in his chair. Well - my question to the CreditNet community is simple. Are your CRs and FICO score improving because of 'manipulation of the system' or wiser use of credit? Or a combination? Has credit (re)building made us wiser consumers? Does the CNer make the FICO or the FICO make the CNer?
I can't speak for others, but in my case, it has definitely been both. I've used the system to my advantage - specifically the FCRA and California's even more stringent consumer protection laws. I've disputed, requested validation, and spent well over $300 in CRRR fees. And, its paying off with fabulous results. Slow at first, and then picked up bigtime steam. On the flip side, I've also discovered the hard way what an impact credit makes in ones life, and have become a more careful and wise consumer. My problem is that I like material things, and I like instant gratification even more. I always will, and most likely will never have the discipline to stop. I now adhere to the following: 1. I pay cash for everything (with the exception of car payments). Credit cards are only used for gas and groceries and paid in full every month. 2. I've set up a money market account that receives a direct deposit every payday. It's up to about four months of living expenses and growing. It requires two signatures to withdraw any funds in case I get any ideas - LOL. 3. I moonlight as a freelance web guru, and the money I make there is what I/we get to spend on "toys". I've found that this system worked wonders, and I've literally changed my life. -HDAlex
