As if there aren't enough scores for these lenders to peddle to the public for profit, there is now a "bankruptcy score" that lenders use in addition to credit score, what do you guys think?:
Bankruptcy Risk Score - The Hidden Credit Score
While most people are aware that their credit score can have a large impact on their financial lives, there is another score that the credit bureaus keep that most people are not aware of - your Bankruptcy Risk Score
Your credit score is made up mostly of your history of obtaining credit and paying off debt. This score helps determine what type of interest rate you receive on credit cards or loans that you apply for. Most people assume that it is this score alone is used by the financial institutions considering whether or not to give you a loan. The truth is that a bankruptcy risk score is now being used more and more when lending institutions are looking at a person's credit history. The bankruptcy risk score has been around for about 20 years, but has been kept fairly hush - hush. It measures how likely a person is to file bankruptcy and uses information that makes it more specific than a credit risk score. The bankruptcy risk score is exclusively for lenders provided by the credit reporting agencies.
This bankruptcy score is supposedly a complex mix of your credit score plus your spending habits. The credit agencies and those that use this report (and have contributed to creating it) don't want to reveal the model because they spend a lot of time and money developing it and if they explain it, they are giving away part of it's value. Therefore little is said about this report (and why you have never likely heard of it before).
You may be able to learn a bit more about it in the near future. Experian is considering making its bankruptcy risk score available to consumers. This is after they revealed a study last July which ranked the states that had consumers who were most likely to file for bankruptcy within the next year.
Experts say that many of the same things which improve your credit score also improve your bankruptcy risk score. That includes paying your bills on time and not over applying for credit.
The bankruptcy risk report is usually used in conjunction with the credit score when a consumer gives their bank permission to pull their credit report for a new loan application, a bank card or a credit card. It is also used during account reviews to help determine whether to increase a consumer's credit limit.
Insiders say that the bankruptcy score is scored the opposite of your credit score. For your credit score, the higher the number, the better with 850 being the best. For the bankruptcy risk score, your want the lowest number possible. In fact, the score actually goes into negative numbers and can goes to approximately 2000.
News about this bankruptcy risk score is leaking out slowly so if you are one that keeps a close eye on your credit score, it would pay to keep close attention to the news for more information about this score emerging in the months ahead.
It won't be very long and we will be paying about $30.00 a month just to get all of our different scores.. LOL
And I bet a lot of major lenders have their own type of scoring system.. If we want an Amex card we would need to buy a score watch for Amex.. If we want to refinance with Wells Fargo we need to buy the Wells Fargo score.. If we want a good deal with Auto or Home insurance we need to buy our Insurance score.
The bankruptcy score is probably almost the same as the FICO score but the numbers are flipped around. Sounds like a money racket to me..
My CU is so and so.. Sometimes I love them, sometimes I hate them...
They have helped me in bad situations. But when the CU computers lock up on a holiday weekend, I'm out of town, and my ATM/Debit Card doesn't work.. Its Friday and I have to wait till Tuesday morning for someone to reboot the system. They make me mad.
My CU can sometimes be very slow to process debit card transactions. Sometimes that has turned out to be an advantage. For whatever reason, they won't sync my ATM balance with my bank account on Mondays. If my payday is on a Monday. I am still working with Friday's available balance on my ATM/Debit card.
My employer offers direct deposit. When I DD my funds into my bank account. The bank account had DD funds available at Midnight. With my CU the DD doesn't become available till at least 8 AM the next day. I prefer to pay bills and such after midnight..
Billpay is slow with my CU... I do the online billpay on Friday. The payments are not sent out till Tuesday or Wednesday.
On the other hand. My CU has not caused me any problems like the banks have. I might complain about them but they have always been there for me.
Alot of CUs aren't as tech savvy as mainstream banking institutions, but they more than make up for it in customer service and fairness towards the consumer. I have no problem with these lending institutions having their own scores, as they have a right to protect themselves against deadbeats, but my beef is that these scores should be free to the public since the info on your credit report differs drastically from agency to agency. Consumers should be able to pull their scores 10 times a day every day, 365 days per year if they want to. *stepping off my soapbox* LOL