Good thought, but not true. Before, FICO, banks did their own due diligence and selected their business accordingly --- and yet interest rates didn't suffer because of it. Today, banks and other lenders are too damned lazy and greedy. They rely on losers like Fair Isaac to provide them with a brainless way of doing business and pocket the net. There is NOTHING magic about a FICO score. Your numbers on your most recent eye exam have greater validity and are more useful.
Like I've said before --- it's like to stupidity of the SAT scores --- another way for lazy, unthinking people to NOT make decisions on their own. Has the SAT helped improve college education any?
In 2003, the government surveyed college graduates to test how well they could read texts and draw inferences. Only 31% (less than 2/3) were able to complete these basic tasks at a proficient level, down from a pitiful 40% ten years earlier. Less than half of all college graduates graduate with a broad proficiency in math and reading. So, how have SAT scores helped? --- especially since ETS keep dumbing down the tests.
You may ask why I bring this up? Because its directly analogous to the FICO situation. Numbers without meaning are given meaning.
FICO scores have not improved the level of foreclosures, for example. In fact, the level of home foreclosures in on an upswing. Why? Because tons of over-anxious, poorly prepared people jumped into 1% teaser mortgages with negative amortization that, after five years left them with even bigger monthly payments than they would have had before. And the real estate market melted, leaving them with the promises of big capital gains that were never realized.
Banks used FICO scores to approve those loans --- without considering the consequences of the type of loan, the nature of the market, and whether or not there was a likelihood of the owner being able to make the future payments. And yet FICO will ruin these people in the future, 7 - 10 years, because they were given loans --- largely based on those scores --- that they should never have gotten, and the foreclosure will be reflected in the FICO scores.
If banks were really doing the due diligence that they did for so many years, your loan application would consider you as you, as you are now, and not some moronic number created by brainless people for brainless people.
Maybe Fair Isaac and the CRAs aren't evil --- but they are a close approximation.