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Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012
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Re: Simply Fed Up with Fico/Credit Scoring in General

[ Edited ]

Mikeguy11,

 

All good points. However, as I stated in my post above yours, I think the FICO is a bit clumsy and needs to be more sophisticated to deal with nuances on risk at a more indivualized level that FICO currently obscures and bungles. 


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!
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Mikeguy11
Posts: 7
Registered: ‎02-28-2011
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Re: Simply Fed Up with Fico/Credit Scoring in General

FICO isn't perfect and never will be, and I don't think even Fair Isaac would claim otherwise. The problem is that it's good enough. They're constantly reworking things (tu98, tu04, etc) and that's what gives Experian, Equifax, and Transunion their differentiation.

But it most certainly is not a worthless, evil, or non-sensical measure of credit-worthiness. It's used all over the largest economy in the world because it DOES work. If it doesn't make any sense to you, then you need to do more research about it. It's not perfect, but it does work.
Senior Contributor
drkaje
Posts: 3,489
Registered: ‎07-25-2008
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Re: Simply Fed Up with Fico/Credit Scoring in General


ztnjpv wrote:

Mikeguy11,

 

All good points. However, as I stated in my post above yours, I think the FICO is a bit clumsy and needs to be more sophisticated to deal with nuances on risk at a more indivualized level that FICO currently obscures and bungles. 



Whatever formula is used, only a few things lead to lower scores. Expecting a formula to figure out why a late payment, CO, repo, or whatever happened is unrealistic.

 

I do feel 7 years is too long for simple stuff like a late payment.

 

I also feel 10 years is too long on bankruptcy. Despite whatever circumstances led to going BK, it should be off your record sooner than someone can be out of jail for involuntary manslaughter.... on good behavior. :smileyhappy:


Starting Score: 675
Current Score: EX 754 FICO, EQ 737FICO
Goal Score: 776 FICO


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AZHeather
Posts: 304
Registered: ‎04-26-2012
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Re: Simply Fed Up with Fico/Credit Scoring in General

The specific way the scores are calculated are hidden from the general public.  But what makes up the score is, for the most part, common knowledge to those who take the time to educate themselves.  What's shady about scores are the companies that are permitted to sell the so-called FAKOs with the teeny tiny disclaimer that they're useless.  It's also shady that consumers don't have access to the various FICOs out there.  If I want to know my auto FICO prior to getting an auto loan, I should have the option of buying it.  Same for the rest of the FICOs. 

 


+1


Starting Score: 634 EQ-FICO (4/20/12) 579 EX-FAKO (4/30/12) 629 TU-FICO (5/6/12)
Current Score: 698 EQ-FICO (11/26/12) 705 EX-(11/21/12) 698 TU-FICO (11/26/12)
Goal Score: 720 (for starters)


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discernment
Posts: 1,142
Registered: ‎09-01-2011
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Re: Simply Fed Up with Fico/Credit Scoring in General


FrugalRican wrote:

How many success stories have we seen of people who lost their jobs, their houses, and years later are back in good standing?

 



My husband and I lost our 401-Ks, our vehicle and, most every "material" thing we ever had.  I pray that you are right -- that one day we will be back in good standing. We are senior citizens who are trying to rebuild with a lot less income, a lot less energy but, a whole lot of perseverance and determination.  We are trying to appease FICO® in our credit building by gardening 3 toy limit sprouts.  I wish it did not take all the "years later" to see some progress but, that's the system.  In all our many years on this earth, we have learned, there will always be a system, the system will not be perfect, it will always need amending and revamping and no one will love it.  This is just life.                                                                                           



Husband's Current Score: EX 691 CUSC; EQ 694; TU 687; Mine: EX 773 (AMEX); EQ 720; TU 750
Wallet Contents: SECURED: Capital One Platinum Mastercard, US Bank Harley Davidson Visa, USAA Bank American Express;
UNSECURED: Chase Freedom; USAA Cash Rewards World Mastercard, Discover More, CUSC Platinum Rewards Visa, American Express Zinc, American Express Blue Cash Preferred, Amazon Card, Walmart Discover Card
Regular Contributor
MustangSaluki
Posts: 202
Registered: ‎07-07-2008
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Re: Simply Fed Up with Fico/Credit Scoring in General

[ Edited ]

drkaje wrote:

dodgeball wrote:

Being paid in the end is all that really counts, being late is actually profitable to the lender with fees and late charges, If I was a lender all I care about is at the end of the contract am I going to get my money, thats it. It should be this simple Current debt current or not, Paid debt, and defaults.


So if your boss job paid whenever, it would be okay?


 

If he did that once in the last 3-4 years, I would be totally ok. It will not stop me from recommending my friend to join the same company. Also I will not encourage him to demand a higher salary from my boss, because you know he is "risky" due to a 30day late history in paying my salary one time. If he did that multiple times in the last 4-5 years then I will quit the job of course.

 

The system has been AWFULLY absurd and continues to be so. It needs a major revamp and lot more transparence. We need more people with influential powers to raise and channel the voices of concern to appropriate points who can inflict changes needed overall.

Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007
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Re: Simply Fed Up with Fico/Credit Scoring in General


MustangSaluki wrote:

The system has been AWFULLY absurd and continues to be so. It needs a major revamp and lot more transparence. We need more people with influential powers to raise and channel the voices of concern to appropriate points who can inflict changes needed overall.


Are we taking Washington or credit scores?  LOL I am confused.

 

How about this.  If you don't like your credit score do something to improve it.  I did and many others here too.  Took me almost 10 years to improve mine.

 

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Regular Contributor
MustangSaluki
Posts: 202
Registered: ‎07-07-2008
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Re: Simply Fed Up with Fico/Credit Scoring in General


marty56 wrote:

MustangSaluki wrote:

The system has been AWFULLY absurd and continues to be so. It needs a major revamp and lot more transparence. We need more people with influential powers to raise and channel the voices of concern to appropriate points who can inflict changes needed overall.


Are we taking Washington or credit scores?  LOL I am confused.

 

How about this.  If you don't like your credit score do something to improve it.  I did and many others here too.  Took me almost 10 years to improve mine.

 


I was talking Washington. I would rather have them pay attention to financial ramifications of a "closed" system that affects lives of 300 million people than some retard who decided to juice up in order to hit a few more home runs than his peers. 

 

I see you are a senior member here have definitely helped several people over the years I can imagine. So I will just respectfully disagree if you have a different viewpoint. :smileyhappy:

 

I do like my credit score and I did have to work on it for 4-5 years as I have indicated in a few of the earlier posts. My post wasn't meant as rant for creating shortcuts to this process.

Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007
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Re: Simply Fed Up with Fico/Credit Scoring in General


MustangSaluki wrote:

I do like my credit score and I did have to work on it for 4-5 years as I have indicated in a few of the earlier posts. My post wasn't meant as rant for creating shortcuts to this process.



No problem.  A change I would like to see a relook at why 7 years is used for major derogs as opposed  to say 4 or 10.

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Valued Contributor
Imhotrodcrazy
Posts: 1,395
Registered: ‎03-11-2009
0

Re: Simply Fed Up with Fico/Credit Scoring in General


MustangSaluki wrote:

marty56 wrote:

MustangSaluki wrote:

The system has been AWFULLY absurd and continues to be so. It needs a major revamp and lot more transparence. We need more people with influential powers to raise and channel the voices of concern to appropriate points who can inflict changes needed overall.


Are we taking Washington or credit scores?  LOL I am confused.

 

How about this.  If you don't like your credit score do something to improve it.  I did and many others here too.  Took me almost 10 years to improve mine.

 


I was talking Washington. I would rather have them pay attention to financial ramifications of a "closed" system that affects lives of 300 million people than some retard who decided to juice up in order to hit a few more home runs than his peers. 

 

I see you are a senior member here have definitely helped several people over the years I can imagine. So I will just respectfully disagree if you have a different viewpoint. :smileyhappy:

 

I do like my credit score and I did have to work on it for 4-5 years as I have indicated in a few of the earlier posts. My post wasn't meant as rant for creating shortcuts to this process.


Washington??   They are the last people I would trust with my money. 

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