Credit cards

On 05/07/2012 06:24 PM, The Henchman wrote:

Not only lenders use it. Now, insurance companies, utilities, and
marketing companies use it.

I have NO confidence in the score's ability to quantitatively show
creditworthiness. Last time I applied for a loan, I was very surprised
at what mine was; and at the ridiculous, false, and contradictory
reasons given for it.

You are correct about the utilities. I forgot about that. My electric
company three years ago, when I was opening an account, wanted $500
deposit or a copy of our credit report. It was december and I gave the
rep a report from october and he blasted me cause it was older than 30
days. That same report was used to purchase/mortgage a $400 000 house
in Novemember but god forbid it be used for $500 of goodwill on a
electrical meter.

That's because the mortgage people know where you live. Oh, wait...

--
Cheers, Bev
--------------------------------------------------------------
"Never keep up with the Joneses. Drag them down to your level.
It's cheaper." -- Quentin Crisp 1908 - 1999

"John Weiss" wrote in message
...
The Henchman wrote:

It's a bit ridiculous that secured credit "hurts" more than
unsecured credit, but the entire FICO thing has gotten WAY beyond
ridiculous with the way it is being used...

So many people are worried about their FICO score and I bet many
don't even know what it is.

Fico is really meant for lenders to determine creditworthiness of a
borrower. Higher score means more trustworthy. Lower scores mean
more risk from borrower but could also translate into higher returns
because higher rates would be justified by the lender.

FICO's customers are lenders, not borrowers. Sure FICO sells
services to borrowers like fraud and credit protection thru Equifax
and other 3rd party members but that's like selling Best Buy selling
warranty insurance on a $19 keyboard. Pure gravy, but not alot of it.

I check my credit score only during Mortgage negotiations so I am
armed with information in case some faceless lender tries to
strongarm an extra .1% (which can add up to alot in a mortgage).

You can routinely abuse credit and still have an 800 FICO score.
IMHO The only time a borrower needs to worry about a FICO score is if
they are applying for large credit. Maybe a young person's first
car, post-grad university loan, mortgage, things of that nature.

Not only lenders use it. Now, insurance companies, utilities, and
marketing companies use it.

Potential employers use it also. Some states are trying to make that
illegal--considering what a vicious cycle a job loss can cause. Employers
not giving a job to a guy because he has been out of work for over six
months and now his credit rating has slipped. Duh.

I have NO confidence in the score's ability to quantitatively show
creditworthiness. Last time I applied for a loan, I was very surprised
at what mine was; and at the ridiculous, false, and contradictory
reasons given for it.