New Visitor
robert82187
Posts: 1
Registered: ‎07-08-2010
Re: Interpreting Your FICO Score

FICO scoring is a joke and so is MyFICO.com.  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! 

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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
Re: Interpreting Your FICO Score

Hi, robert82187, welcome to the forums!

 

There's a much easier way to control the credit profile that you represent to lenders, and it doesn't cost a penny of interest. Just read around here, especially on the credit cards forum and this one, and you'll find out how to let a minimal amount report without carrying balances. You should be able to recover a lot of those points. Inquiries don't make that much of a dent in your scores, although the new accounts that result from them will drive them down for several months.

 

Sorry to read about the unexpected credit pulls. It seems like everyone pulls these days, often for what seems like nothing at all.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Visitor
janmarie123
Posts: 1
Registered: ‎07-22-2010
Re: Interpreting Your FICO Score

Great post!! The humor is refreshing!

On a more serious note: I am a Real Estate Broker with several offices and many agents. In this day of short sales (both hardship and strategic) and foreclosures we are consistently seeing clients walk away with damaged credit. A recent national stat shows 25% of the population have a credit score of 620 and under. Will FICO eventually be looking into this and possibly changing their scoring formula in the future?

Valued Contributor
my-own-fico
Posts: 1,141
Registered: ‎01-05-2010
Re: Interpreting Your FICO Score

 


janmarie123 wrote:

Great post!! The humor is refreshing!

On a more serious note: I am a Real Estate Broker with several offices and many agents. In this day of short sales (both hardship and strategic) and foreclosures we are consistently seeing clients walk away with damaged credit. A recent national stat shows 25% of the population have a credit score of 620 and under. Will FICO eventually be looking into this and possibly changing their scoring formula in the future?


And a whopping 40% have a score between 750 and 850 (which means that 35% are between 620 and 750).

 

 

It would be nice if everyone was above average :smileywink:, and it may be possible when not grading relatively.

 

When it comes to wishful thinking vs reality, wishful thinking wins.
New Visitor
freckles62
Posts: 1
Registered: ‎08-20-2009
Re: Interpreting Your FICO Score

I enjoyed your interpretations, but what I find so amazing is that when we applied for a car loan 6 days prior to our mortgage lender running our credit there were major differences in our reports.

 

1.  My scores at the dealership were in the 500's, when I checked myself they showed low 500's, when the mortgage lender ran they were between 572 and 627.  Go Figure

2.  My husband at the dealership was over 700 (after a short sale 16 months ago), his personal check showed 680, mortgage lender saw between 649 and 680. 

 

So how do we know what is the truth?  How can we hang our hats on this mixed up system?

 

 

New Visitor
loggy
Posts: 1
Registered: ‎07-22-2010
Re: Interpreting Your FICO Score

that's cute

Established Member
SirMKnight
Posts: 14
Registered: ‎03-11-2007
Re: Interpreting Your FICO Score

:smileyvery-happy: "They always say time changes things, but you actually have to change them yourself"

 The truth is that any change that occurs in the world always begins  first with change within the individual...

in my corner of the world that means me:smileywink:

 


Starting Score: 455 Eq 8/5/05
Current Score: 666 Ex 5/10/10
Goal Score: 720


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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
Re: Interpreting Your FICO Score
[ Edited ]

 


freckles62 wrote:

I enjoyed your interpretations, but what I find so amazing is that when we applied for a car loan 6 days prior to our mortgage lender running our credit there were major differences in our reports.

 

1.  My scores at the dealership were in the 500's, when I checked myself they showed low 500's, when the mortgage lender ran they were between 572 and 627.  Go Figure

2.  My husband at the dealership was over 700 (after a short sale 16 months ago), his personal check showed 680, mortgage lender saw between 649 and 680. 

 

So how do we know what is the truth?  How can we hang our hats on this mixed up system?

 


 

Hi, freckles, welcome to the forums!

 

You've come across one of the ugly realities of credit. Most people unknowingly buy what we call "FAKO" scores, which are credit scores derived from non-FICO scoring formulas. Lenders don't use them, but the sellers of the scores (often the credit bureaus) make a tidy sum on the sales. :smileymad: One handy indicator as to whether scores are FAKO's is if you have an Experian "credit score," as Experian stopped allowing consumers to buy our own Experian FICO scores in February of 2009. Other than in a very few instances, an Experian credit score is generally a FAKO.

 

Also, many car dealers pull a specialized subset of FICO scores called "auto-enhanced" FICO's, which are tailored for the auto industry. Auto-enhanced FICO's are often higher than classic FICO scores, as they are on a different score range, but they can also be lower, especially if the consumer has ever had problems with previous auto loans. The scores that mortgage lenders pull are generally the so-called "classic" FICO scores. You can get these here, although the TU score is an older version, but as mentioned above, you can't buy your FICO Experian score. You find that one out by applying for a mortgage, or by belonging to one of a tiny handful of credit unions that supply this score. PSECU in Pennsylvania is one of them.

 

Anyway, we hope you'll read around here on the various forums and learn all the weirdnesses involved in consumer credit. With the knowledge found here, and some hard work, many members have made dramatic improvements in their credit profiles and in their FICO credit scores.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Visitor
dlee1065
Posts: 1
Registered: ‎07-28-2010
Re: Interpreting Your FICO Score

How very well put......as entertaining as it was true and pertinent. Thanks for making us smile!

New Visitor
MSConceit
Posts: 1
Registered: ‎07-31-2010
Re: Interpreting Your FICO Score

THAT WAS FUNNY AS HELL! I will definitely share this with friends and family. Maybe they will now understand clearly what I've been trying to tell them.

 

Thanks