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Posts: 1
Registered: ‎07-08-2010
Re: Interpreting Your FICO Score

FICO scoring is a joke and so is  November 2009, I had a flood in my home.  While the insurance carrier was gracious to work with me, the credit establishment made it more difficult to return my home back into reasonable shape when refinancing to reduce large credit card debt (56% debt to credit ratio).  First, no one wants to talk rates until they run a hard credit report.  Naturally, each hard inquiry decreases the credit score.  One credit union (the one with the lowest home equity loan rate - who refused to grant a long term loan, because the value was too low $54,000 on a home valued at $400,000), actually denied me an equity loan because there was "water damage".  Three months later, that credit union actually granted me the equity loan, but 2.5% higher than was originally quoted, and at a FICO score that I did not have for over 8 months.  The score at the time of the original application in November was 738.  The score they used in February was 686. which was reported in March 2009.  The score at the time of the final application was 735.  As of July 1, 2010, it has dropped to 718 and indications are that it is spiraling downward.  When FICO was initially questoned in April 2010, after receiving credit alerts, I was told it was because I was paying off the $42-70 charges on my gasoline credit cards.  The individual with FICO suggested that I not pay the entire amount (this would be subject to a minimum service charge, plus the [congressional approved usry) rates of 24-28%.  When the trend continued the following month, June the FICO representative contradicted the prior representative, but stated it was because of the number of "hard" inquiries.  He stated that 2 inquires from the same banking institution, CITI Group (for 2 different gas cards that I have carried for over 15 years) were made when they automatically increased my credit without my approval.  Another "hard" inquiry was made when an intrusion alarm representative came to my door to install an alarm device on my home, although the installation was to be "free", monthly payments would have to be made.   Although I gave the alarm company some personal information but told him NOT to run a credit report, he did so anyway.  Since February, I have consolidated and decreased long term debt by selling off some assets, as well as paying down revolving credit debt (currently 3%).  The better my financial management, the lower my FICO score.  Of course, this is perhaps the way the bankin industry does business to make up for their mistakes, plus take our tax dollars!