06-17-2007 12:00 AM - edited 06-17-2007 12:10 AM
06-22-2007 04:55 PM
I daresay the lenders with products labeled as subprime would file suit against FI and win.
06-27-2007 01:14 PM
The jury has not reached a verdict on this. It is believed FICO will begin to do this with their new scoring model but it has not been confirmed yet.
Lenders base rates on FICO scores. Why not also base FICO scores on rates!
If it ever becomes possible to change the grouping to ignore banks and types of accounts (ie subprime) and instead identify the interest rates for those accounts. Because someone receiving a 0% apr from a subprime loan should be rewarded (they would have to have good credit) vs a person that pays 25% on a loan (they would have to have bad credit or be desperate). I doubt you are able to do this now, but maybe a possible change for the future. Because I always take any opportunity to borrow money rather than use my own for smart business reasons if interest rate is low.
So maybe in the future
Prime loans 6% and lower.
Medium loans 6-8%
Low loans 8-10%
Subprime loans 10-18%
Sub Subprime loans 18-32%
This way, everyone gets treated equally and the type or bank, or title would have nothing to do with the scoring. Only the interest rate. That in my opinion would be extremely accurate. If interest rates ever find their way on a credit report to be possible. :-) Thank you for listening.
Message Edited by ilovepizza on 06-17-2007 12:10 AM
06-27-2007 04:13 PM - edited 06-27-2007 04:14 PM
06-28-2007 01:47 AM
fused111 wrote:The jury has not reached a verdict on this. It is believed FICO will begin to do this with their new scoring model but it has not been confirmed yet.
06-28-2007 09:07 AM - edited 06-28-2007 09:09 AM
06-29-2007 01:22 AM
fused111 wrote:The thread below clearly suggests a possible change.
06-29-2007 10:07 AM
Around three minutes into the presentation, percentages (perhaps score values) are shown for CCs, mortgages and auto loans, and each of these has two categories prime and subprime. Didn't you see this? Am I the only who thinks somethings might change after watching this?
fused111 wrote:The thread below clearly suggests a possible change.Not sure about a thread. More like a presentation. And I still didn't see even a hint about the CC itself serving as an indicator of risk.
06-29-2007 10:11 AM
No, and I am the one who noticed they had slipped that infused111 wrote:Around three minutes into the presentation, percentages (perhaps score values) are shown for CCs, mortgages and auto loans, and each of these has two categories prime and subprime. Didn't you see this? Am I the only who thinks somethings might change after watching this?
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