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New Contributor
creditconcept
Posts: 66
Registered: ‎04-03-2014

Misconceptions about Fico and Credit Cards

Epic Contributor
Creditaddict
Posts: 22,096
Registered: ‎10-23-2007

Re: Misconceptions about Fico and Credit Cards


creditconcept wrote:
Lol

http://www.youtube.com/watch?v=vMM-a9dvcGM

6-9 months later no credit score!

I really do like lots of what he says but sometimes I'm like WHAT?

Although sometimes even Suze Orman makes me do that, but I think it's the simplified TV short answers that sometimes leave me saying that's not totally correct but I get it as the simple answer for the masses that don't understand at all.

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
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Frequent Contributor
MidnightJester
Posts: 298
Registered: ‎04-27-2014

Re: Misconceptions about Fico and Credit Cards

[ Edited ]

Liked the video alot. What he says is mostly true. You do need to do the borrowing dances to get the scores. And paying them properly will lead to great scores. But you dont need to pay alot of intrest to get high 700-800 scores.

 

And I think the score things with 6-9 months is if nothing was showing on your credit report. We know things stick around for 10 years on your credit file. but if you could wipe your past payments and loans and cc off credit report it might go to 0 real fast.

Established Contributor
bdhu2001
Posts: 518
Registered: ‎04-24-2014

Re: Misconceptions about Fico and Credit Cards

[ Edited ]

creditconcept wrote:
Lol

http://www.youtube.com/watch?v=vMM-a9dvcGM

I really liked the video.  If he has enough cash to buy home w/o credit, great.  If not, the rest of us have to build up our score to get the best rates.  My house will be paid off soon, but now I'm thinking of moving to a different place for my retirement.  My current home will become a rental so I'll either need to buy another home or rent.  Either way, the bank will still be getting my money; either through my landloard or directlly from me.

Current Score: EX 839 EQ 794:TU 792 on 7/4/14; EQ from myfFico on 6-26-14
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Goal Score: 800+
Moderator
Kenny
Posts: 6,392
Registered: ‎01-15-2009

Re: Misconceptions about Fico and Credit Cards

Wow. What can I even say about that train wreck of lies?
Starting Score: EQ04: 748 (1/31/14) - TU08: 755 (1/06/14)
Current Score:EX08:778(12/04) - EQ04:770(10/31) - EQ08:791(12/05) - TU08:798(12/05)
Goal Score: 800+
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011

Re: Misconceptions about Fico and Credit Cards

Several flaws in that video.  First off, after 6 months, nothing happens.  Positive accounts stay on for 10 years.  Yes, FICO was invented for the banks and lenders, why would the public need it?  The banks are the ones loaning money and need a method to calculate risk.

 

It doesn't cost $100,000 to have a decent score.  Good grief.

 

If someone has the means to always pay by cash, and then suddenly doesn't, that would be a red flag.

 

 


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July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Frequent Contributor
PandiferBear
Posts: 278
Registered: ‎05-09-2014

Re: Misconceptions about Fico and Credit Cards

My favorite part was that once you had a score that you could go to "0" in six to nine months.  Because "0" is totally in the FICO range, right?


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Valued Contributor
Gunnar419
Posts: 1,264
Registered: ‎01-23-2013

Re: Misconceptions about Fico and Credit Cards


Shogun wrote:

 

It doesn't cost $100,000 to have a decent score.  Good grief.

 

 

 


Really. I know Ramsay is sort of the anti-credit guy. But surely he knows better than that! My FICOs are all in the 791-801 range and I've paid maybe $2,000 in interest in the last 10 years. Being a good MyFicoan, I know I could have gotten here while paying zero interest with some patience.

 

I like some of what he says in general, but he's either surprisingly ignorant about some things or he's lying to make his point.

Established Contributor
bdhu2001
Posts: 518
Registered: ‎04-24-2014

Re: Misconceptions about Fico and Credit Cards


Gunnar419 wrote:

Shogun wrote:

 

It doesn't cost $100,000 to have a decent score.  Good grief.

 

 

 


Really. I know Ramsay is sort of the anti-credit guy. But surely he knows better than that! My FICOs are all in the 791-801 range and I've paid maybe $2,000 in interest in the last 10 years. Being a good MyFicoan, I know I could have gotten here while paying zero interest with some patience.

 

I like some of what he says in general, but he's either surprisingly ignorant about some things or he's lying to make his point.


You're being too hard on the guy.  He's exagerating to make a point & using his own situation as if it were fact.  He doesn't have a FICO score, because he hasn't used credit in 20 years so he figures it took 6 months to get to no score.  He's wrong, but he's like a lot of radio and talk show hosts who spot their opinions as fact instead of actually investigating to know their subject.  

 

He doesn't realize that he simply doesn't have a score, not that his score is zero. Also, I wonder how correct he is about his own score.  When I pulled my credit report, even my overdraft protection shows as available credit.  He evidently has a checking account w/o overdraft protection. That guy is as old as I am or older and when we opened checking accounts, overdraft protection was practically automatic (unless you had horible credit). 

Current Score: EX 839 EQ 794:TU 792 on 7/4/14; EQ from myfFico on 6-26-14
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Goal Score: 800+
New Contributor
MrCrabs
Posts: 138
Registered: ‎06-23-2014

Re: Misconceptions about Fico and Credit Cards

I agree with some stuff he says but if you PIF you never pay any interest and with cashback rewards you will make a little back which most bank/CU debits do not offer. My cu debit does have a rewards type program but most of the products are junk and costs tons of points to get a cheap $5-$20 item. I honestly think he is just bitter because he went bankrupt and now hates all credit and doesn't realize it was his own misuse and wrecklessness that caused it. I would love to pay cash for a house but I don't have 50 years to save for it so i'll happily take a mortgage with small monthly payments.

Current Score: 639 (3.06%) 19pt gain


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