Ah...I finally get it. It is a vast conspiracy to punish those that donâ??t fit the FICO scorecards! all motivated by greed and a desire to circumvent consumer protection laws. I see it now, it was hatched in a smoke filled room by a bunch of old white guys in suits just to punish woman and people of color. White Anglo Saxon males are told the secret code to enter on credit applications just so we can get all the great rates and free toasters when we apply. Gee I thought it was my own hard work in paying bills and cleaning up my credit that did it. I donâ??t know why I bothered wasting my time.Iâ??ll just use the secret handshake next time I need a loan, I had reserved that for my membership to Augusta National, didnâ??t know I could use it at the BANK Thanks LB for that insightful post, it was so full of great info!!!Now if you would only stop quoting entire messages and shorten your sig line I might keep you off my ignore list. On second thought never mind I think Iâ??ll but you back on ignore, I had forgotten why I put you there in the first place, thanks for reminding me.
In credit as in insurance, the name of the game is minimizing risk. Venture capitalists will fund 100 companies, 95 of which will go belly up. They remainder will go IPO and make them a ton of money. Bankers on the other hand want people who will consistently pay back their loans and a lower but safer rate of return. And profits of course. FICO is the biggest factor, but things like age of accounts also come in. A credit card company doesn't want someone who will bolt to someone else when they get an offer for a lower rate. That is where things like account age come in. And creditors, like insurance companies only want their piece of the market. Some will only serve those with super high FICO's and a long average account age because they want to make money of their cutomers. Others will take good enough FICO's and try to make up on volume of accounts open. But the goal is mapping out your market and minimizing risk of charge off's and BK's.
It's funny that you wrote this. I was thinking the exact same thing. I could have written this message word for word. I've had him on ignore for about a year and for some reason pulled him off of it a couple of weeks ago. My irritation level almost had me posting something I'd probably regret. Looks like time to put him back for another year or so.
Alent, you bring up a great point: that FICO scores are designed to meet the needs of their customers - credit providers, even if that means the model does some strange things that would seem to penalize financially sound behavior on the part of consumers (who are definitley NOT Fair Issac customers). GEORGE speaks of RNG, and many others, including myself, have wrestled with the fact that even if you have a superb personal financial statement, you can have a lowered score if your credit usage behavior does not match the "norm." Credit providers don't really care about financially sound behavior on the part of consumers. They care about behavior that maximises their profit. And FICO reflects this. I've probably just restated everything you were talking about in different words, Alent, but you really flipped a switch in my head and gave me a new insight into credit scoring - Thx!
What offends you so much about my speaking out against the Fico scam? 1*What is it that you don't like about my signature line? Did the thought ever occur to you that my comments about fico credit insurance, etc., come from what I have learned and observed from this experience? 2*I have no problem with that it's your choice. I can only share information-I can't force anyone to accept it or even read it for that matter. BUDGET HOMES CO.
What offends you so much about my speaking out against the Fico scam? 1*What is it that you don't like about my signature line? Did the thought ever occur to you that my comments about fico credit insurance, etc., come from what I have learned and observed from this experience? 2*I have no problem with that it's your choice. I can only share information-I can't force anyone to accept it or even read it for that matter. BUDGET HOMES CO.
Ok LB, since you asked What offends you so much about my speaking out against the Fico scam? I could write a book here. 6332 posts as of last post and I would be willing to bet over half of them are you "speaking out against the FICO scam". Your opinion, I know, I'm just really sick of hearing it from you. What is it that you don't like about my signature line? Well, I don't believe it. Why, because I've read way too many of your posts. But hey, thats my opinion and you don't have anything to prove to me. Let me give you an example of mine: BACKGROUND: 1*Asset Management 22 years I've owned a car for that long 2*Financial Services 20 years I pay bills and balance my checkbook 3*Insurance 22 years I've bought insurance that long 4*Stock Market 17 years I bought my first stock that long ago 5*Business Owner - Consulting Company 17 years I formed my company out of college 6*Rock Superstar - since I first sang in the shower Did the thought ever occur to you that my comments about fico credit insurance, etc., come from what I have learned and observed from this experience? I did think that for about two seconds, then I fell off my chair and started rolling around on the ground laughing hysterically. I have no problem with that it's your choice. I can only share information-I can't force anyone to accept it or even read it for that matter. And for that, I thank God. I think (read "my opinion") that the very few times you do provide meaningful information, half of it is wrong. I think that you "quote" every post that you respond to and make each one a separate post to run up your number of posts. I think that your other posts that don't have meaningful information, which is the majority, are usually either obnoxious or not asked for or off topic. So I guess in summary, you offend me, hence the reason I had you on ignore. And the reason you will be back on ignore, momentarily. I'm sorry if this is harsh, but it's my opinion and you asked.
And that's the whole thing. How do you define the norm? It's always changing. The CRA's and creditors have databases with decades of information which they are continually mining for patterns and other things that will make them more money. I'm a network admin and sit next to our database admins at work. Every day someone comes over who wants help with a query or to add new tables or columns to the database in order to mine it for info better.
Pat, you crack me up. Actually, I'm in complete agreement, lol. I don't know if you remember, but our friend actually was featured in a CNN story not too long ago. Here was the link in case you missed it: http://209.26.140.39/ftc.html Doc
I had forgotten (or tried to) the entire martian green card incident. Thanks for bringing it back p.s. Sorry for hijacking the thread for my rant. I should have started it in a new post.
1*Bingo you got it,but some here just can't grasp the facts. 2*Alent wasn't the first. 3* If you wan't to see the light about scoring and reporting do a search on me.
Given LBrown is extreme, he is right. I'm sorry but if you cannot recognize how things in this country work by now, and why lbrown is correct, you are plain stupid. Why would FICO be kept secret for so long? Because it obviously is not this morally and just calculation. Of course it is meant to calculate profitability that also considers the risk of default and charge-off. A person that charges 11000 on a 12000CL card and pays it off every month just by the grace period is a net loss to the creditor. Even if he carries half that balance to next month and then pays it off, it is still a net loss. Idealistically, you want the poor schmoe that keeps going over his CL and keep being a day late, yet never going into default. Of course that is impossible, at least for the long term. I'm not trying to defend lbrown and I do think saying "FICO scam" is absurd, just like saying "stock market is a scam" and "casinos are scams". But his concepts are right on point. Just use them to your advantage. If you want more credit, create the illusion that you would be profitable to other CCs without the risk.
1*Not an opinion. 2*Well it's true wither you believe it or not. 3*I worked for a company involved in all these fields.I have also been a licensed insurance Rep.with 2 different insurance companies and have held a securities license. I can assure you that my experience goes well beyond owning a car for 22Yrs,paying bills and balancing a check book for 20 Yrs.,purchashing stock from 17 Yrs. ago and buying insurance for 22 years-although I have done all that as well. 4*I started my own business selling homes in 1973. In nearly 30 years of selling homes I have been around bankers and insurers a lot. 5*Just shows me how little you know about what I post. 6*Plain as day that what I know and what you think are two different things. 7*I couldn't care less about number of post. 8*I really don't care what you think. 9*like I said fine with me. 10*Don't be sorry. I appreciate your post. It has told me a lot about you.
1*Given LBrown is extreme, he is right. When you see how These 2 industries bankers and insurers are milking consumers of billions of dollars per year it tends to make one extreme. 2*I'm sorry but if you cannot recognize how things in this country work by now, and why lbrown is correct, you are plain stupid. But his concepts are right on point. Mecro +++++++++++++++++++++++++++++++ I have had opportunities to learn and observe what goes on behind the scenes in the corporate world especially in the financial and insurance fields that most folks will never get to see from the inside. ~~~~~~~~~~~~~~~~~~~~~~ When poster such as Doc,Breeze,Pat,John M , etc., mock me it shows just how foolish they are being. Fico is just one of the methods.The other ways I will not get into here on the board.
I still can't figure out what everyone finds so unfair about the FICO model. The major points are pretty simple and straight forward. Pay your bills on time every month. Late payments are a sign of a lack of discipline. I know someone who works for citi and this is how he explained it to me. The creditor lends you money, and then sells the debt as a pool to other investors. They have to make regular payments on the debt they sold. If you miss a payment then they have to dig into their own funds to pay until you catch up. They hate late payments. Don't max out your cards. Maxing out your credit lines is seen as an impulse buyer who must own everything under the sun. Right until BK. Old accounts that are paid on time are more valuable than newer ones where you haven't proven yourself yet. Before people let you borrow thousands of $$$ they want to see a repayment history. A huge number of attempts to get credit is seen as the same as #2. Impulse buyer needs credit to to buy up everything. CHOD and other forms of credit repair only work because they are done on a very small scale. That is why the FICO model is popular. If things that are talked about here were done on a huge scale, then creditors would tighten the purse strings since they would be exposing themselves to more risk from a lack of a good model to predict BK and charge off's.
LOL you really do not get it at all. And your friend is either lying to you or is plain gullible. Impulse buyer is a creditor's best friend as far as the risk of default never appears. Figure that part out and maybe you can see a clearer picture
F.I.C.O. is used to INCREASE the cost of CREDIT!!! Take me for EXAMPLE...how can I have NO "BADDIES" ever (24+ YEARS)...but NOT be able to get above F.I.C.O.~~739???
GEORGE, gotta be RNG. After reading this thread, I just asked my Mom what her oldest card is...it's from 1987 (15 yrs.) Her TU is 717. You have the longer history, how does this make sense? Trina PS As noted in another thread, she got denied by Best Buy due to insufficient INCOME.
