FICO Scores....More Info - Posted by JPiper

Posted by Mark-NC on March 23, 2001 at 08:01:42:

Rick,
I have heard that too. But in both cases that is what was scored. They had low to 0 ballances with 5 trade lines.

Sometimes the scoring system is very unfair. I have pulled many reports that seemed like false scores. For instance I had one guy who only had one trade line open for two months on an automobile, that was it. He had a 657 score. And I have seen people with what I thought was great credit get scores in the high 500’s.

Mark

FICO Scores…More Info - Posted by JPiper

Posted by JPiper on March 21, 2001 at 12:26:43:

Steve Cook posted some information recently regarding statistics from a newsletter. Get this…I got my score from Fair Issacc vai equifax (equifax.com). Fair Issacc gave out an explanation. According to their explanation 60% of consumers have scores of 700+. Only 13% have scores LESS THAN 600. This is the group I mostly see from my advertising.

Sounds like Fair Issacc has it all figured out huh? The majority of people are 700+. Wild. I think they’re nuts…but what do I know.

JPiper

I’ve saw something really strange once… - Posted by Anthony Neuhard

Posted by Anthony Neuhard on March 22, 2001 at 13:31:07:

My uncle, who is always late with his payments and is overextended as much as anyone could be, has a FICO of 750+. This includes multiple 30,60,90 days late. He refi’s every other year (to get his principle back out). He has made a number of interest only payments to keep from being foreclosed on.

He was asking me about refinancing again, and I took a look at the paperwork and saw his FICO was over 750 and I had a fit. I can’t get mine over the 600 mark and I pay on-time every-time.

I’m beginning to believe that FICO scoring uses a random number generator in its algorithm somewhere.

FICO-schmico, with analogy - Posted by AnnNC

Posted by AnnNC on March 22, 2001 at 24:10:09:

Scoring is a business so that data can be given importance, ranked, and sold. I heard that each inquiry
lowers your score. Good. Good reason to explain why
you won’t have multiple inquiry done on yours.
Perhaps someone recalls recent news item about attempt to capture DNA in job application because someone said DNA showed some people’s propensity to carpal tunnel syndrom (a mostly over-use, bad mechanics, and easily- fixed problem, if addressed through ergonomics, job-re-assignment, cross training, and work-station adaptation (usually, the keyboard position).

The merchandising approach is that if it can be measured, it MUST
be meaningful. This is not necessarily so, but if we can “prove” it, we can "sell"
it, sell our program to address or manipulate the information.
Someone gets paid to create that
market.

Having little power to change FICO scoring system, perhaps one should just service the market that it creates, but in a good way, that gets business done,
and not just a curing -of- scores approach.

Ann

Re: FICO Scores…More Info - Posted by Anne-ND

Posted by Anne-ND on March 21, 2001 at 22:23:59:

Our most recent tenant had a FICO score of 785. Never had a mortgage, has over $40k in student loan debt and no revolving credit on his cards. He’s also visually impaired, so he’d never had a car loan. The guy who runs our credit checks was torqued; he told me: “I’ve paid off 19 mortgages and my score isn’t this good!”

go figure…

Anne

Re: FICO Scores…More Info - Posted by Dave T

Posted by Dave T on March 21, 2001 at 21:50:40:

I suspect that that 60% (above 700) group consists primarily of those consumers who have only one mortgage (on their owner-occupied home), have two credit cards, and maybe an auto loan. All loans are current, and many in this group pay off their credit card balances each month. They are not applying for credit cards or mortgage loans, and therefore, have a relatively small number of credit inquiries on their report.

I only suggest this from my personal experience, because at one time this was my credit profile, and my FICO was 850.

We had some guys… mortgage brokers - Posted by David Alexander

Posted by David Alexander on March 21, 2001 at 17:57:49:

come to AIREO awhile back and they said, that they had only seen above 800 twice in their career.

Until then I had always thought 750 was the highest.

They must be running for office or something and playing politics… 11% above 800 and 60% above 700… Hehehe.

I’ve Recently found out that a property that I purchased subject to is on my credit report… figure this one out.

I bought in a trust and the only thing I figure is somehow the trust, my name ( they sent the coupon book out in the name of the seller, POA me), and the address… all got thrown together.

Anyway this deal was pulled out of foreclosure and the first payment or two before found a buyer was made over 30 days… the credit is on my report and needless to say my fico is somewhat below 700… hehe.

I dont ever use my credit anyway and about ten years gave way to all the duplicate stuff on my file, David Alexander is a very common name…

Just dont know if it’s worth the hassle to keep it cleaned up… a real pain in the A**

David Alexander

Telling the truth would mean more reform! - Posted by Paul_MA

Posted by Paul_MA on March 21, 2001 at 17:00:14:

Assuming the credit reporting bureaus are “bending” or “twisting” the real truth, consider this:

Suppose the statistics said that 65% of everyone was UNDER 600, what would happen? Anger and more reform.

Last thing these credit reporting ‘businesses’ want is looser restraints and more reform regarding the consumer report.

In my opinion, this statistical ‘front’ keeps most consumers at bay.

Paul_MA

Only conclusion must be … - Posted by Redline

Posted by Redline on March 21, 2001 at 14:12:49:

If 60% of consumers have 700+ then either:

  1. F&I are totally wrong and have no clue (which I really believe).
  2. Someone needs to raise the bar!

RL

Re: FICO Scores…More Info - Posted by Dan

Posted by Dan on March 21, 2001 at 13:42:51:

Yeah, I saw that too. Earlier, folks were speculating whether those stats referred to people who had actually received loans, but on the Equifax site it refers to “U.S. consumers.” It says 40% of consumers have scores above 750!

Re: The Obvious Question… - Posted by Stacy (AZ)

Posted by Stacy (AZ) on March 21, 2001 at 12:54:57:

Well, don’t keep us guessing! What did it say your FICO score is?

Stacy

Re: FICO Scores…More Info - Posted by JPiper

Posted by JPiper on March 21, 2001 at 22:57:04:

A point you might be interested in: Fair Issac says that one important factor that affects your score is the amount of debt compared to the total credit line. The higher the percentage the worse it is. Interestingly, when the consumer pays off his card each month, Fair Issac still shows a month end balance on the card. So for example, the guy who charges alot each month let’s say for business, but who pays it off each month, might still get gigged because of the methodology in using the account balance at the end of the month. Something I learned today after reading Fair Issac’s info.

JPiper

Re: FICO Scores…More Info - Posted by JPiper

Posted by JPiper on March 21, 2001 at 16:21:20:

yep…40% above 750. Here’s another shocker…11% above 800.

Meanwhile, I’m dealing with the bottom 13% of “US Consumers”…those with scores under 600.

I think these guys are smoking dope.

JPiper

Re: The Obvious Question… - Posted by Bob (Md)

Posted by Bob (Md) on March 22, 2001 at 01:02:07:

748, of course ;-)…

Of course, it took a bit of a hit when I got a month behind in the paymentw on my jet - I was in Switzerland and just lost track…

NOT!

Re: The Obvious Question… - Posted by JPiper

Posted by JPiper on March 21, 2001 at 13:36:43:

yeah right! Why don’t I put my fico out on the internet! Good idea.

JPiper

Re: FICO Scores…More Info - Posted by JohnBoy

Posted by JohnBoy on March 21, 2001 at 23:25:10:

Isn’t that some scoring system? The higher your balance to your credit limit, the lower your score drops. Also, if you carry a $0 balance it will lower your score too! From what I’ve heard, to get the highest score in this catagory, you should always carry about 25% balance owed on your credit limit, only have two major credit cards, one gas card, and no department store cards, and no loans from finance companies! In fact, loans from finance companies hit your credit score pretty hard! The theory being that, if you had to use a finance company to get a loan then you are considered a much higher risk since you couldn’t qualify for a bank loan instead!

The only problem with this theory is that they don’t tell people these things and when they go out and buy new furniture and get financing through the store, that financing is almost always through a finance company vs. a bank and had nothing to do with whether they could get a bank loan or not!

Re: FICO Scores…More Info - Posted by Mark (SDCA)

Posted by Mark (SDCA) on March 22, 2001 at 10:16:50:

That IS wild. lol. I don’t even have a score about 800. (Too many inquiries I think.)

Mark

11% above 800… - Posted by Dan

Posted by Dan on March 22, 2001 at 07:31:55:

Here’s a thought> I would be very curious if anyone on this board has ever encountered someone – even themselves! – with a score of 800 or higher. If as the bureau claims, 11% have scores that high, then they’d be all over the place. Let’s hear it from the board! Anyone in the octo-centenarian club out there?

These complainers all have low FICOs… - Posted by Stacy (AZ)

Posted by Stacy (AZ) on March 22, 2001 at 01:29:09:

Can you believe all these LOW FICO types, complaining about Fair Isaac?! Feel sorry for the “little people”, Bob.

I’m off to Cannes for a few weeks. It’s good to leave before the Hollywood riffraff shows up in May.

Re: Heh, heh…nt - Posted by Stacy (AZ)

Posted by Stacy (AZ) on March 21, 2001 at 14:02:24:

.