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Epic Contributor
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Registered: ‎03-19-2007
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Re: FICO doesn't understand the credit card game

[ Edited ]
PIF only makes you happy, it does not not put money into the pockets of the credit card companies.  So why would any credit card company want to see you rewarded with an improved FICO score if you are a recognized PIF'er?
Do you think that FairIsaac generates credit scores for the benefit of the consumer, or the lendor?
Yes, FICO does understand the credit card game.  The credit card companies are their customers.  The scores are for what they want to see, not for what the consumers hope they will be.  Game over.


Message Edited by RobertEG on 11-29-2007 09:45 PM
Super Contributor
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Re: FICO doesn't understand the credit card game

In many ways, Fair Isaac "created" the modern CC game  :smileyhappy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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Re: FICO doesn't understand the credit card game



RobertEG wrote:
PIF only makes you happy, it does not not put money into the pockets of the credit card companies.  So why would any credit card company want to see you rewarded with an improved FICO score if you are a recognized PIF'er?


Not completely true. You also make money for the CCC's by using your card, because they get a transactiion fee each time you melt off a little more plastic. I'm sure they're delighted to collect interest, but that's certainly not the only way that they make money.
 
There are too many people on these forums with high scores who are PIF'ers. But they use their cards a lot, and they have great relationships with their CCC's.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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Registered: ‎12-02-2007
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Re: FICO doesn't understand the credit card game

You said: Well, I know you say that FICO doesn't understand modern credit card usage, but as long as you understand how FICO works, that's all you need.
 
I am so interested in learning the FICO way. Please, if anyone is willing to educate me on this process, I would be devoted to share with my family, friends and help anyone recover from the credit ignorance I grew up with.
 
Being the 3rd generation of unworthy creditors,  I was never taught to save, never saw bills being paid, credit cards, my mom would avoid the bill collectors being a single parent, never had anything extra to enjoy and still struggles. I don't want this life. I want to break the cycle! I have been a single parent, no child support and I am trying very hard to educate my children on credit issues to break this cycle.   My eldest son, graduated college, I helped him through school and now he is an Army Ranger he enlisted after graduation, excellent credit 700s. I feel so proud of that and that he watches his score.  Daughter - poor checkbook, no credit cards, still in college, next son first year college, 3500 loan and no cards, one son still at home - he's the saver.
 
My fico is 610
Experian says 640
Equifax 618
TU uncertain
 
I have tried desperately to clean my CRs and had a number of things removed after a divorce.
Sent letters to DCs and had them validate so I came from nothing to 610.
 
I realize I have a long way to go, but I am certainly diligent and willing to do what the experts say.
If anyone would mentor me, I would be your best student.
 
Over one year - never late double payments to get out of debt.
 
take home is 65000 yearly
 
Amex 1000 limit - 400 balance
Orchard 930 limit 336 balance
Mastercard 1000 limit 300 balance
AnnTaylor 600 limit 82 balance
Express 650 limit 40 balance
Macys 300 limit 200 balance
Providian 1750 limit 700 balance
Beneficial - revolving that I cannot get out of 14,000 I have paid it every month faithfully but they charge me interest on the balance. I just didn't understand when I consolidated after a divorce to have some money to put my first of four children into a college.
Personal Loan high was 6,000 now 2,800 remaining
 
2 Auto loans  383 and 250 monthly
Mortgage 1100 monthly
 
Most all of these cards are due at the end of the month and often were used to support my family.
After the end of this month I expect to have all of them paid to zero or the lowest balances possible.
My holiday gift to myself.
 
3 badies on my report but today I just sent two checks for 35.00 and 37.00 to the creditors. Yes... 72.00 made my score lower. Hopefully they will delete, two medical bills unpaid.
 
 
There..  you all know my life.
Any suggestions on how to play the FICO game, payment methodology I am interested in learning and would be greatly appreciated from any seasoned FICO players.
 
Thanks to anyone who is willing to advise me how to start.
It's never to late...
Senior Contributor
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Re: FICO doesn't understand the credit card game



MidnightVoice wrote:
In many ways, Fair Isaac "created" the modern CC game  :smileyhappy:


FI created the scoring game, but not the CC game itself. A distinction with a difference, I believe.
 
The CC game is generally held to have been created in a NYC restaurant by the men who would become the founders of Diner's Club.
 
However, there are gas station cards from the 40s, at least, and the CC itself dates back to 1914.
 
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Re: FICO doesn't understand the credit card game



Noah_Bodie wrote:


MidnightVoice wrote:
In many ways, Fair Isaac "created" the modern CC game  :smileyhappy:


FI created the scoring game, but not the CC game itself. A distinction with a difference, I believe.


True - I suppose I meant the current version of the game  :smileyhappy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
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Re: FICO doesn't understand the credit card game



Quartrermoon wrote:
 
I am so interested in learning the FICO way. Please, if anyone is willing to educate me on this process, I would be devoted to share with my family, friends and help anyone recover from the credit ignorance I grew up with.


Don't be afraid to start a new thread and lay out the details. Helps cut down on thread clutter and helps ensure your questions get answered.
 
Established Contributor
Posts: 739
Registered: ‎06-30-2007
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Re: FICO doesn't understand the credit card game

My cards report current stattements new balance


Timothy wrote:
Most cards report "previous Balance" and "Last Payment"
If FICO wanted to take this into account(PUN) they could-


People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
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Registered: ‎10-03-2007
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Re: FICO doesn't understand the credit card game

Hi, I agree with just_curious.   This is also a reply to the person questioning the return on investment regarding paying off the house: Why doesn't the scoring model consider a person that has 7 cards with zero balance and one card maxed out to be a good risk? Most likely this hypothetical person is making use of 0% apr offers. otherwise they would put balances on multiple cards.  I also agree that a person should not be required to "play" the credit card game in order to have a good score. If the card is paid off every month (like I do also,and never pay interest) why should i be required to "know" what date the reporting agency gets their data.  The problem is FICO's are a statistical average. Most people get paid small amounts every 2 weeks. When you have money to pay bills at your free will you get punished by "the system"
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Re: FICO doesn't understand the credit card game

FICO scoring is for the credit companies.  They want to know what the risk is in lending you money but they dont make any money if you PIF each month. 
 
To the credit company, the best customer would be the one who maxis out their credit crads, pays the minimum payment each month and is is sometimes a few days late (never 30 days) so they can collect the late fees.
 
That was me 5 years ago yet my credit score was poor since most people since the default rate for people like me was very high so I was placed into the high risk factor.  I never thought of myself as a poor risk but how could the CCC have known?  Becuase I am a nice guy?  Becuase I give my word?
 
Be thankfull that the system allows people to play the FICO game that dont have tons of money to pay cash for things like cars, homes and sometimes even a gift for DW/DH..
11/28/2014 FICO: EQ: 796 EX:788 TU:803
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