This is under business solutions, about credit scoring. Credit scoring models are summarized versions of a credit report that assign a score based on the likelihood of a specific predicted outcome. Credit scoring models allow our customers to view a consumerâ??s credit information knowledgeably, quickly, and objectively. Credit scores help our customers make more effective credit decisions by predicting a variety of different outcomes, including: Responding to a credit offer Paying as agreed Generating revenue on an account Closing an account Repaying overdue accounts this... especially the "generating revenue on an account" would explain how your score goes down when you pay TOO much off!! At last, they admit the truth... credit scoring is ALL ABOUT making money!!
Read it & weep... http://www.transunion.com/Business/IndCreditCard.asp says: "Stop putting your credit card into everyoneâ??s hands! Put a credit card into the hands of the consumer most likely to use it profitably!" http://www.transunion.com/Business/IndCreditCardRelProd.asp says: "TransRisk* predicts the likelihood of an account becoming more than 90 days delinquent in a 24-month period. EMPIRICASM* predicts the likelihood of an account becoming delinquent in a 24-month period. " http://www.transunion.com/Business/FncRiskManagementRelProd.asp "SENTRYSM* predicts the likelihood that a credit card customer will close an account within three to five months (whether by requesting the close or paying down to a zero balance). By predicting these account closures, you can take steps to keep your valued customers." http://www.acxiom.com/DisplayMain/0,1494,USA~en~356~1497~0~0~,00.html "build loyalty and retention through customer knowledge optimize customer profitability through effective cross-sell and up-sell programs" http://www.enroncredit.com/technical_papers/introCreditRisk.asp "Industry data shows that the recovery rates vary between 70% for secured bank loans to 30% for unsecured subordinate debt. Thus trade creditors who rank with other unsecured lenders can expect 30-50% recovery rates. These figures are also liable to change with economic conditions and the industry type." http://www.sas.com/industry/auto/autocrm.pdf "Build more profitable customer relationships. Continuously learn from every interaction with your customers. Devise strategies to retain them, cross-sell to them, and make the most effective use of all your channels. "
My gosh, this is so depressing...you're darned if you carry a balance (interest, etc.) and you're darned if you don't carry a balance becuase you're not profitable... how the heck can you win????? Ozzy.
Of course money lenders want to maximize their profits. Good lord, folks, is this really a revelation? (In any case, it couldn't be a revelation -- lbrown59 reminds us about the profit-motivation of banks and other lenders fairly often here, LOL. Mr. Brown, wherever you are, this is your cue to sing the evil-FICO song.) My father is getting up in years and bought his FICO score a couple of weeks ago. (My credit obsession is spreading across my family tree, lol.) His was 798, and he was disappointed that he didn't have closer to the 850 perfect score. I told him, "Dad, you don't want to be an 850. Anyone who scored an 850 would be their perfect customer -- i.e., someone who has the most profitable mortgage and who always makes sure that the credit card companies make as much money as possible. Instead, you want to be somewhere in the 775 to 825 range -- which would signify someone with a great credit record but who's a normal person rather than a Stepford applicant." (Does anybody else remember the "Stepford Wives" movie, a 1970s sci fi flick about a town named Stepford where husbands were replacing their gripy wives with perfect android versions?) Sure, creditors love the Stepford applicants, LOL. But if you shoot for something in the high 700s or low 800s (nice goal, right, lol?), then that just means you paid everything perfectly on time for many years even though you might carry zero balances and may not be their idea of the "perfect" customer. Doc
I've gotta read that one where they can predict a customer will close an account, hehe. Some of them should be getting some predictions about me.
Ooooooooooh I like this one!! Lifestyle????? hmmmm wonder what they mean by that? sounds like discrimination to me. Neighborhood???? now, we all know what that one does........more discrimination!
