Just sharing what I read somewhere. 1*A good discription of FICOefective Quackware. 2*reliance upon computer modeling to determine whether or not an applicant is credit-worthy is most foolhardy, especially when the software uses incomplete, erroneous, or incongruous data, and allows no provision for correction of simple mistakes by the computer operator.-- 3* FICO scoring also belongs in remote archives, remembered for destroying countless lives, as did smallpox and our own american racism. FICO scoring is no better. when shit stinks, it's a good idea to try the flush handle first. in this case, i'm sure the air will be cleaner for everyone, except the scoring idiots. human behavior is NOT among predictable sciences. in spite of this fact,{UN} fair isaac has been granted exclusive rights on the future for the next 30 years, or so...... .and they're leading us all slowly... straight to hell..... 4*When it becomes apparent to credit issuers that the FICO credit score is damaging their ability to make money, it will be very interesting to see what happens.
Can you share the source of this info? Were it not for the data being incomplete/erroneous at times, FICO does what it's supposed to do in terms of statistical analysis. But they sometimes fail in extrapolating those stats into their predictive modeling. Also, point #4 seems a bit off to me. Creditors are making money hands over fist because of FICO's shortcomings. No, FICO isn't as good as it could/should be, but therein lies its profitability.
http://www.bayhouse.com/credit-foru...hp?threadid=461 http://www.bayhouse.com/credit-foru...hp?threadid=592 BayHouse Credit Forum - My prediction - Fair Isaac will implode BayHouse Credit Forum - Fannie Mae thinks credit scores are less important
So basically the source of lbrown59's information is some babbling from some other message board. Doc
There is a big difference. Docs' postings have thought, reasoning, experience and help. Yours have nothing but, (here we go again) fico is a scam fico is a scam fico is a scam fico is a scam
Which brings up an important point: while your credit score is an important part of any lending decision, it's not the only piece. Your income in comparison to your debts is another factor especially for an organization like Fannie Mae. If you default on your credit card bills, the lender is out all of the money. But if you default on your mortgage, they have a security interest in the property. Also, they know that if money gets tight and you can only pay your mortgage or your credit cards, 99.9% of the people will pay their mortgage. A lot of people around here grumble about FICO and their individual scores. I'd bet that if our scores were in the 800's, there wouldn't be too many people complaining.
And let me add one more thing. Let's pretend that 3 years ago you lent two friends $1,000 each. The first one paid you back on time every month while the second one skipped payments and then just stopped paying you. Today, both friends come back and want to borrow $1,000 again. Would you loan the second friend the money? Probably not. You're making your decision based on past behavior which is exactly what FICO does. I'm not saying FICO is perfect but a lender has to use some objective system to determine how much to lend and at what rate. For those who don't like FICO, what system would you use if you were a lender to assess risk knowing that some people are going to default?
+++++++++++++++++++++=================== I would look at his track record with me. I could give him a no. from 300 to 900. But how would that change if he would pay me back or not?
What a lot of people don't seem to understand about FICO is, it is a generic model. Lenders look at a raw FICO and then rescore to their standards. FICO is sort of a rough first cut. The watchword in the credit community today is credit risk. CC lenders have seen the Nextcard and Providian blowup. Metris is operating on one lung and a prayer. Several internal scoring models from major banks and cc companies predict you'll see a tidal wave of defaults if the unemployment rate stays over 6% for 2 consecutive quarters. Look for credit standards to tighten considerably when it comes to unsecured debt. As to the predictive value of FICO or any other scoring system. It won't be absolutely perfect. But, it's like that old saying: "the race doesn't always go to the swiftest nor, the battle to the strongest but, that's sure the way to bet".
When you say Metris is on one lung, do you mean Direct Merchants and/or Fingerhut. Fingerhut recently ran a soft inquiry on me. I have an account with them from several years ago that I never use. I don't owe them money and it is the first time I've ever seen them doing an account review. Just curious
Maer & keepmine, Both of you are right. Metris was a spinoff of Fingerhut. Metris now provides credit & enhancements via its subsidiary, DMB.
Rina, I know that DMB used to offer it's cards to fingerhut cardholders. Do you know if they still do this?
Nope. I was curious because I knew they used to do this. When I had a fingerhut acct. (I was trying to buile positive history) I asked them about it several times, and not 1 person knew what I was talking about. They all claimed to not even know who DMB was.
