topic Re: To Fair Isaac.. new way to code/score inquiries? in Understanding FICO® Scoring

To Fair Isaac.. new way to code/score inquiries?

SoulSmilen — Sat, 14 Jul 2007 12:21:48 GMT

To the powers that be...

If it is or is becoming standard practice now for banks to pull a hard inquiry when opening accounts, FICO needs to change the way it rates and scores the inquiries. Opening a savings/checking/money market account is NOT indicative of 'recently seeking credit.'

If I want to spread my savings around in 5 different banks or so, I'm to receive demerits that will effectively determine interest rates and even the possibility of being issued credit? For being financially responsible and saving??? I don't think so...

Fair Isaac, it's time to be fair!

Message Edited by SoulSmilen on 07-14-2007 07:19 AM

Message Edited by SoulSmilen on 07-14-2007 07:21 AM

Re: To Fair Isaac.. new way to code/score inquiries?

MidnightVoice — Sat, 14 Jul 2007 14:14:24 GMT

I was thinking there are "degrees" of inqs.

CC and Loan - seeking credit for ANYTHING Mortgage and auto - middle ground, buying "essentials", and mortgage could be a refi

Cell phone, land phone, cable, satellite, utilities, new bank accounts - normal life. To me, they should be graded differently

Message Edited by MidnightVoice on 07-14-2007 09:14 AM

Re: To Fair Isaac.. new way to code/score inquiries?

Anonymous — Sat, 14 Jul 2007 14:52:48 GMT

I won't let my banks pull hard inqs for savings/CD accounts and make them remove them if they do. They should pull soft pulls like insurance companies. UnFair Issacs is more like it when it comes to inqs for savings accounts. Force the bank to remove them.

Message Edited by ilovepizza on 07-14-2007 07:52 AM

Re: To Fair Isaac.. new way to code/score inquiries?

Anonymous — Sun, 15 Jul 2007 18:07:10 GMT

Yeah, tell me about it. The "average person only does 1-2 inquiries every 12 months" is bogus, IMO. Apparently nobody tries to switch insurance companies? A lot of them pull your actual credit report (like Progressive, State Farm and All-State). I opened a checking account with Citibank and they pulled my credit report (I'm pretty sure I didn't remember seeing that on the application). Every 6 months, I shop around for auto/home insurance, but now it's starting to hurt my FICO scores due to the hard pulls.

Re: To Fair Isaac.. new way to code/score inquiries?

smallfry — Sun, 15 Jul 2007 18:36:10 GMT

I agree and have you noticed CCC's are starting to do multiple pulls per credit application? It needs to be tweaked a bit for sure.

Re: To Fair Isaac.. new way to code/score inquiries?

Anonymous — Tue, 17 Jul 2007 07:24:25 GMT

You can blame the Patriot Act and OFAC (Office of Foreign Assets Control) for the inquiries.

http://www.treas.gov/offices/enforcement/ofac/faq/index.shtml

http://www.treas.gov/offices/enforcement/ofac/faq/index.shtml#finance

http://www.treas.gov/offices/enforcement/ofac/faq/index.shtml#consumer

Re: To Fair Isaac.. new way to code/score inquiries?

Anonymous — Tue, 17 Jul 2007 07:28:13 GMT

SoulSmilen wrote:
If it is or is becoming standard practice now for banks to pull a hard inquiry when opening accounts, FICO needs to change the way it rates and scores the inquiries. Opening a savings/checking/money market account is NOT indicative of 'recently seeking credit.'

Yet another area of unfairness where inquiries are concerned.

Collectors collecting on a debt, and banks when opening an account.

That the inquiries can or should be there is a separate issue, but in the case of CAs the courts have said they do have PP. However, hard versus soft is a marketing concept created by the CRAs and FI made use of it in scoring.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=14932