Credit Card Center Advertiser Disclosure

Posts: 93
Registered: ‎03-06-2007
0 Kudos

EX Rant, step back....

[ Edited ]
It'll be EX who'll be the first to drop the AUs from credit scoring.  I would bet the ranch on it.
EX is now in the CA business anyway.  I posted previously how if you're credit improves (and you're in an improved position to pay) EX will sell these lists to CAs.  That's why as your credit improves you start getting a lot of Zombie debts.
Plus, the lower your overall score, the more profit CC, mortgage lenders, etc. can charge you (because if you have a lower score, they have to charge you a higher rate).  But, a CRA can't be blatant about it or the Government might step in.  So this AU crap gives them a great opportunity.
From a mathamatical perspective, being an AU should increase you credit score (maybe not AS MUCH as being the owner of the CC).  If you have the resources to become an AU on a $15,000 cc (whether family or buying it through a sleazy company) you're probably a better statistical bet to pay a debt then someone with same pre-AU score who does not have such financial resources.
That's what irritates me about the CRA's:  the junk math.  EVERY event / variable they have EVER introduced works to LOWER your score.  Back in the day, for example, they didn't include student loans and medical collections in your score.  Now, an overdue book from the library (that goes to collections) lowers your score.  LOWER LOWER LOWER. 
As far as junk math goes, I can make the argument that because you watch "King of Queens", you're more likely to default than if you watch "Las Vegas".   If the CRA can think of a reason that isn't too absurd to lower your score, they will. 
EX is the worst as far as verifying and correcting.  You think they do it just to be mean?  They just hate people for no reason?  No.  The lower your score, the more business (indirectly, sure) they get. 
Okay, done ranting. 

Message Edited by ALEXREDD on 06-28-2007 11:23 AM
Moderator Emeritus
Posts: 2,050
Registered: ‎04-17-2007
0 Kudos

Re: EQ Rant, step back....

You make some good points.
One element of junk math I have never understood is the notion that the CCCs (CAs, CRAs, etc.) make more from people with bad credit because they can charge them higher interest rates, late fees, over-limit fees, etc.  When hit with big bills, people simply don't pay them.  So it doesn't do the banks much good to charge all these fees if they're never going to collect them.  I guess there's a tipping point there somewhere ...
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.