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EX Rant, step back....


EX Rant, step back....

It'll be EX who'll be the first to drop the AUs from credit scoring.  I would bet the ranch on it.
EX is now in the CA business anyway.  I posted previously how if you're credit improves (and you're in an improved position to pay) EX will sell these lists to CAs.  That's why as your credit improves you start getting a lot of Zombie debts.
Plus, the lower your overall score, the more profit CC, mortgage lenders, etc. can charge you (because if you have a lower score, they have to charge you a higher rate).  But, a CRA can't be blatant about it or the Government might step in.  So this AU crap gives them a great opportunity.
From a mathamatical perspective, being an AU should increase you credit score (maybe not AS MUCH as being the owner of the CC).  If you have the resources to become an AU on a $15,000 cc (whether family or buying it through a sleazy company) you're probably a better statistical bet to pay a debt then someone with same pre-AU score who does not have such financial resources.
That's what irritates me about the CRA's:  the junk math.  EVERY event / variable they have EVER introduced works to LOWER your score.  Back in the day, for example, they didn't include student loans and medical collections in your score.  Now, an overdue book from the library (that goes to collections) lowers your score.  LOWER LOWER LOWER. 
As far as junk math goes, I can make the argument that because you watch "King of Queens", you're more likely to default than if you watch "Las Vegas".   If the CRA can think of a reason that isn't too absurd to lower your score, they will. 
EX is the worst as far as verifying and correcting.  You think they do it just to be mean?  They just hate people for no reason?  No.  The lower your score, the more business (indirectly, sure) they get. 
Okay, done ranting. 

Message Edited by ALEXREDD on 06-28-2007 11:23 AM
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Moderator Emeritus

Re: EQ Rant, step back....

You make some good points.
One element of junk math I have never understood is the notion that the CCCs (CAs, CRAs, etc.) make more from people with bad credit because they can charge them higher interest rates, late fees, over-limit fees, etc.  When hit with big bills, people simply don't pay them.  So it doesn't do the banks much good to charge all these fees if they're never going to collect them.  I guess there's a tipping point there somewhere ...
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
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