I don't think the banks are part of this. I don't think they use this to take more money from you, I think they depend on this to limit losses and to be able to offer better rates to less risk customers. However. Many of us SUPER LOW risk people fall under HIGH RISK sometimes. The system is far from perfect. I wonder what would happen to the system if they let us learn more about it. I personally think it would become more accurate because people with options would be able to make better credit decisions. If only those who are forced to apply for high credit loans applied, they could narrow down to fewer people. On the other hand that might make things harder on lower risk people. Then again, people trying to better them selves after being in high risk would have a better chance of getting out by showing more effort which would be reflected if the score system were more open. Bottom line, the public needs to be informed more about how the scoring works if they want to make the scoring more accurate to separate the people that are trying and the people that don't care. Because right now people that don't care are in the same scoring group from people who do care and some better credit risk people fall back because they made the wrong choices (which weren't bad just bad for the score). But who are we, I mean we have a choice which scoring method is used to grade us right. Not really. 
But we do have an advantage the rest of the world does not. Thats this forum. At least we are teaching each other. I just wish I knew more because I like all of you are working my hardest and that should count for something. But the score doesn't reflect that, only unknown factors that we try to do correctly which sometimes backfires.
Message Edited by ilovepizza on 06-15-2007 02:25 PM
But we do have an advantage the rest of the world does not. Thats this forum. At least we are teaching each other. I just wish I knew more because I like all of you are working my hardest and that should count for something. But the score doesn't reflect that, only unknown factors that we try to do correctly which sometimes backfires.Message Edited by ilovepizza on 06-15-2007 02:25 PM
That is a no go! These types of loans are subprime and FICO does not like them. Just wait in the coming months when the same will apply with subprime cc's. This and the change in AUs is really going to nail consumers with thin credit files who have mostly AU TLs. Ouch!
@Anonymous wrote:
@fused111 wrote:Rest assured we will not buy furniture in the future by way of a loan. We will spread it out over several ccs or pay with CASH.
Furniture store loans (if they have their own credit dept). That would fall under a Consumer Finance Company. I still don't understand why it doesn't boost your score positively like a car loan? What if the interest was at 0%? That would be the financially smart choice. Shouldn't that help your score?
I may recommend as a future change, that loans be classified by interest rate not banks for sub vs prime. Because someone taking out a 0% loan must have good credit and someone taking out a 22% loan would be subprime. Who, what, why, when, where doesn't say prime or subprime. Rate does. Hmm. Don't know how they would pull rates from a credit report.