Valued Member
John1956
Posts: 29
Registered: ‎04-02-2007
Re: What you should know about the Dodd-Frank Act

thrasher865 wrote:

Tazman81 wrote:

I do not think it goes far enough.  Can we also throw in Experian not allowing us to get our FICO scores?  We should have access to every score and all information that a lender can possibly use to deny or give us worse interest rates.


I disagree.  I don't think that we necessarily should have access to our credit scores.  It sort of defeats the purpose if we're allowed to create entire communities dedicated to micromanaging our scores.  For the algorithm to be effective, I think it should be based on consumers' typical behavior, not how they act to manipulate their scores, lol.

 

I'm not saying I want EQ and TU scores unaccesible, and I'm not saying I don't want access to my EX score.  Just saying I don't think it's owed to us.  We have access to any score when denied for credit or when given a crappy rate.  That's enough to make sure that dealers and creditors aren't playing games with us.


I'm sorry, but, I sorely disagree with the very last sentence above. We, the people, need every possible rule & regulation to make sure that dealers and creditors, etc aren't playing games with us. I would dare to say that if the HQs of the biggest banks were located in Heaven, they would still try to sneak a few things by us. The bottom line reason that there is need for rules and regulations, is that raw human nature cannot be completely trusted. Especially when it comes to $$$$.

 

There really needs to be a completely level playing field. It is alot like a war. Both sides want to get, or keep, as much $$$ as is realistically possible.

 

Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008
Re: What you should know about the Dodd-Frank Act

 


John1956 wrote:   I'm sorry, but, I sorely disagree with the very last sentence above. We, the people, need every possible rule & regulation to make sure that dealers and creditors, etc aren't playing games with us. I would dare to say that if the HQs of the biggest banks were located in Heaven, they would still try to sneak a few things by us. The bottom line reason that there is need for rules and regulations, is that raw human nature cannot be completely trusted. Especially when it comes to $$$$.

 

There really needs to be a completely level playing field. It is alot like a war. Both sides want to get, or keep, as much $$$ as is realistically possible.


 

Funny...we should trust professional politicians to write the regs that will "protect" us.  The same politicians whose campaigns are funded in part by the big banks and Wall Street. 

 

And in skimming portions of the legislation (as posted earlier in this thread), I see a whole lot about "protecting the economy", but not a whole lot about "protecting the American people".  

 

Just observing here...make of it what you will.   

 

 

 

 

 

Established Member
reyno626
Posts: 14
Registered: ‎07-12-2010
Re: What you should know about the Dodd-Frank Act

Just  as John1956 stated, I beleive that the criteria for being approved should be clearly stated to prospective borrowers before the borrower applies. There is no sense in applying for something when you dont have the minimum score. As it stands now, someone could be 10 points shy of a banks threshold, be denied by that bank, and will subsequently lose more points because of the inquiry. Furthermore, I think scores should only change once per month or when information is changed/added/deleted. That way if I check my score on the 3rd day of the month and its a 703, I know that for the remainder of the month I can look into the best offers for that score. The bank cant come back and say, "when we checked your score  it was only a 699...".

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: What you should know about the Dodd-Frank Act

reyno626 wrote:

Furthermore, I think scores should only change once per month or when information is changed/added/deleted. That way if I check my score on the 3rd day of the month and its a 703, I know that for the remainder of the month I can look into the best offers for that score. The bank cant come back and say, "when we checked your score  it was only a 699...".


I have 15 active CCs and 15 times per month, my CRs update as the balance changes (though these days they are mostly at $0). If my reports can change 15x per month, then my FICO scores can change that many times, assuming nothing gets added or deleted. If I were a lender, I would want to see a real time update to someone's report and FICO scores vs. once per month so as to accurately predict risk. Conversely, if I was a borrower and I actively engaged in repair and debt paydown to get that loan, I would want the lender to know my improved scores more than just once per month if it is changing weekly to get that better rate.

Established Member
reyno626
Posts: 14
Registered: ‎07-12-2010
Re: What you should know about the Dodd-Frank Act
[ Edited ]

 


llecs wrote:

reyno626 wrote:

Furthermore, I think scores should only change once per month or when information is changed/added/deleted. That way if I check my score on the 3rd day of the month and its a 703, I know that for the remainder of the month I can look into the best offers for that score. The bank cant come back and say, "when we checked your score  it was only a 699...".


I have 15 active CCs and 15 times per month, my CRs update as the balance changes (though these days they are mostly at $0). If my reports can change 15x per month, then my FICO scores can change that many times, assuming nothing gets added or deleted. If I were a lender, I would want to see a real time update to someone's report and FICO scores vs. once per month so as to accurately predict risk. Conversely, if I was a borrower and I actively engaged in repair and debt paydown to get that loan, I would want the lender to know my improved scores more than just once per month if it is changing weekly to get that better rate.


 

I understand where you're coming from, but I still feel that scores should remain static for some period of time to allow the whole process to be transpararent. I'm thinking no more often than twice a month regardless of changes, with the only exception being something serious like a judgement having an immediate impact. We all file tax returns once per year, so having to wait two weeks between credit score updates shouldn't be that much of a detriment. My point in mentioning the tax returns is that most lenders will obtain these during the homebuying process. A lot can change from one tax return to the next.

Established Member
GypsyGal
Posts: 29
Registered: ‎09-24-2007
Re: What you should know about the Dodd-Frank Act

Having a score remain static for a week, two weeks or a month sounds good on the surface... But lenders would develop some criteria to protect themselves from the  prospective borrower(s) who would take advantage of the system... The prospective borrower(s) who has everything perfect on the "accounting" day, then maxes everything out and applies for several new loans just because they can...  Whatever criteria the lenders developed would hurt 98% of us to protect lenders from the 2%....  

 

I love playing with numbers, but, I think all the credit number systems are crazy... Lender A values item 1 for 20% of score and item 2 for 25% of score... While lender B values item 1 for 30% of score and item 2 for 15% of score... FICO scores, FAKO scores.... With all the number games, we are still saying "How well do you meet your financial obligations?" 

 

Sometimes I wish we used the old alpha system from school..... Every scoring system would translate their numbers to the appropriate alpha... You would know if your score was an A, A-, B+, B, etc...  A few points up or down would not effect you if your score was a solid "B"...      

Established Member
Chasen850
Posts: 34
Registered: ‎03-24-2009
Re: What you should know about the Dodd-Frank Act

I absolutly agree that Experian shoul have to give consumers a score. I have been hit with this from my credit union. my scores are around 780 from the others and this particular credit union said it was under 650. that is way to big of a spread and with me having absolutly 0 negative items I believe they are lieing to me.

Member
ruby2zzdy
Posts: 17
Registered: ‎10-07-2009
Re: What you should know about the Dodd-Frank Act

You think they'll implement this within 4 days like they did the bank bailouts?  Or at all?  Ever?

New Member
WhateverMan
Posts: 2
Registered: ‎02-09-2010
Re: What you should know about the Dodd-Frank Act

Whatever the government does, the banks will figure out another way to part your dollars from you!  When the over-draft fees became regulated, the banks increased their interest rates on those who could not pay off their account.  Those who gave up their right to the line of credit and closed their accounts, to avoid the higher rates, had their minimum payments increased.  Whatever the government does to cut back on banks' incomes, the banks will find other ways to make up for the lost revenue.  It is just a vicious cycle that allows government (politicians) to give the appearance that they are doing something good for the tax payer, when in truth it usually winds up costing the tax payer more, in tax dollars to oversee the banks and new fees the banks devise to get around the government regulations.  It is all smoke and mirrors my friends!!!

New Member
Beney
Posts: 7
Registered: ‎07-27-2010
Re: What you should know about the Dodd-Frank Act

thrasher865 wrote:

Tazman81 wrote:

I do not think it goes far enough.  Can we also throw in Experian not allowing us to get our FICO scores?  We should have access to every score and all information that a lender can possibly use to deny or give us worse interest rates.


I disagree.  I don't think that we necessarily should have access to our credit scores.  It sort of defeats the purpose if we're allowed to create entire communities dedicated to micromanaging our scores.  For the algorithm to be effective, I think it should be based on consumers' typical behavior, not how they act to manipulate their scores, lol.

 

I'm not saying I want EQ and TU scores unaccesible, and I'm not saying I don't want access to my EX score.  Just saying I don't think it's owed to us.  We have access to any score when denied for credit or when given a crappy rate.  That's enough to make sure that dealers and creditors aren't playing games with us.


I disagree, thrasher. We consumers never asked for this scoring system, and there's no way a simple 3-digit number can tell the whole story, nor enough pertinent parts of it to permit an intelligent decision on whether or not to extend credit or under what conditions.

 

This system is forced upon us and we should have the right - if not the obligation - to do WHATEVER WE CAN to make it work in OUR favor FIRST, and the lenders' second.

 

Insult is added to injury when we are penalized for shopping around for the best deal because inquiries count against us. THIS IS TOTALLY UNFAIR!!!

 

We should be able to determine, as another poster mentioned, our chances of being granted credit by a lender BEFORE WE EVER CONTACT THEM DIRECTLY!

 

Remember: This whole scoring system is yet another way that creditors are allowed to manipulate us and keep us in debt.