Moderator
Revelate
Posts: 9,642
Registered: ‎12-30-2011
Re: Experian roles out new credit score
[ Edited ]

drkaje wrote:

FrugalRican wrote:

It's a vicious cycle, and it's really never going to stop.


It's fueled by greed on both sides of the equation. That part I get. What I don't get is why we'll be obligated to act surprised or cry "predatory lending" when a bunch of people are further in the hole after being approved with a formula designed to 'help' those unable to qualify for sub, sub prime lending.


Breaking my own rule on no longer posting on this topic, but why would they necessarily be further behind?  Even in subprime, just like prime, there's various tiers of credit.  If you get your APR from 400 down to 200% you win, if you get it further down to 100% you win again, and finally if you get it down to 25% which is the entry secured cards, hey you win further.

 

You don't get to go from 400 (or worse, 600% in some cases) to 25% directly unless you have cash laying around that isn't already earmarked for something else, and how many people really have that these days with savings dwindling across the board?   Not only that, if they had cash laying around, they wouldn't need PDL's in the first place.

 

Too many ivory tower assumptions in this thread, maybe it's only because I've worked in a subprime lender and seen our clients that I even remotely come close to grasping the situation, but I'd strongly suggest that people look at some of their ideas held in this thread, or actually get out and go look at some places in life you've never been in before.  

 

The only way up for anyone FICO wise is to get credit and use it responsibly.  This score might allow more people to get their feet in the door and actually give them an opportunity to help themselves; however, many of you seem more desirious to deny them that chance over some frivolity regarding another score being used.  Why would you care on that point, when it is NEVER going to be used for you in the first place?  

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge