Everyone on this board seems to realize that the credit scoring models are flawed, but I think few realize how bad they have become. Here is a short review of my "scores" Exp 686 Eq 703 TU 729 Worthknowing 10 out of 100 Privista 55 out of 100 On a percentile basis, Privista is the only one that puts me in the top 50. computers are great, but I think it's time the credit grantors started taking a look at how screwy things have gotten. How come AMEX will give me a 25k limit and Cap One thinks I'll take a card with a $200 limit at 30% interest. How come I can get an $800,000 mortgage, but I can't get a $2000 cl card from Household? Not to brag, but I make lots of money, regularly have over $30,000 in my checking and money market accounts, have over 10 years at the same employer, but 7 out of 10 credit apps get declined. Another point is that now that the cat is out of the bag on FICO scores, they really don't have much value to anyone. We can now alter our behavior to manipulate our credit scores. I have raised most of my scores at least 50 points thanks to this board, but am I really any more credit worthy than before? When Citi sends me a preapproved platinum card with a 6 month 0% bt offer, why am I less credit worthy after accepting it? Frankly I should get punished if I don't take it for being stupid. Anyone who turns down interest free money needs to have their head examined. I would love to see a list of lenders that have alternate rating strategies. Sorry, but I just had to get that off my chest.
I agree that the scoreing system's are flawed. However you have to realize that guys with high Income and great financial security don't make the CC companies alot of money. You like many here would accept a 0% APR card to transfer other balences there to make it easier to pay off. The CC companies want you to do exactly the opposite.. use the card and keep balances past the intro period. The CC companies make money off of the uneducated middle to low income masses.
I agree, wolverine does not fit their "profit" scorig models. That is the alternate scoring system Can they trap you? Can they bait you into transferring a big balance to them, then when your score drops, they can raise your rate, and you have nowhere to go. Bingo! They gotcha! Of course they are not all totally unscrupulous, but they still want to know they can make money off you, not vice versa. After all, that's the point.
ALWAYS have a way to BT the balance away from a card if they "JACK" you, and close that account A.S.A.P.!!!
Because, if you default on the house, they can get it back. If you default on the credit card, they cannot get the goods/services back. Also, Cap One primarily has catered to the sub-prime market and has therefore been very conservative wrt credit limits. That's a very smart move if the people they want to extend credit to have already shown a tendency to let spending get out of hand. That's - in part - why Cap One is where it is and Providian isn't.
