Why do we have to PAY for FICO Scores??

[Anonymous]

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Pants wrote:

I have no problem with Auto Enhanced FICOs.. But those type of products are not available to the general public. So many people buy credit scores from other websites and they think it is a true FICO score.. Its bad enough when you buy a true FICO product before applying for a loan, you have all intentions it is the "gospel truth".. Then go to a car dealer and the FICO score they  how is 30 to 60 points lower. The rate ends up being 5% higher than what you thought you were going to get.  From reading the posts on here. It seems most Auto Enhanced scores are higher than true FICO scores. But my gripe is if it is so important knowing your FICO scores when car dealers, mortgage lenders, insurance companies and Credit Cards buy different scores enhanced for each specific category of lender?

What about the bankruptcy score? Seems more lenders are picking up that product. Another product not offered to the general public.

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all very good points and further evidence that a fico score is not required to maintain or build a good credit profile.

as for the insurance score, aren't some states prohibiting basing rates on credit score?

[Anonymous]

There definitely needs to be standards, and FICO needs to require that all FICO users use the same version. (i.e fico 08 verses fico 04 classic, etc)  As long as all companies in the same line of business are pulling the same info/scores I am fine.  I also do believe that any scoring system used by non governemental agencies should most definitely be available to the public. (for a charge of course and only your own score...)

[Anonymous]

I think we are drifting off topic.. Lets get back on topic by slightly changing the subject..

1st question.. If you think FICO scores are expensive.. What do you think the fair price should be for a FICO score? or a scores from all 3 bureaus?

Message Edited by Pants on 08-16-2008 02:37 AM

[score_building]

Boscoe wrote:

I'd better post now because I sense the lock being put on the door for this thread as we speak..........

actually not.  of course you can stop reading if you like.  It's pretty clear to everyone else here that the mods have a pretty good handle on it w/o any fear mongering or further editorializing on the lock topic. 

Obviously the OP deserves a full range of responses and that's what she'll get until a mod deems it warranted to lock it up.

We have to pay because myFICO does not offer it for free.   It is a significant source of revenue for them, so why would they not try to get a fair price for them?

That's pretty clear to most of us from the outset.  The question we are throwing around here is:  is it a fair price.  unlike you, some think it's debatable 

Message Edited by score_building on 08-16-2008 05:55 AM

[Anonymous]

Oh believe me I've spent a lot of time trying to get my credit report corrected. (That's a whole different, frustrating issue in itself). When I 1st got my credit reports, they had somehow combined mine and my mother's together. It was a total mess. But now I've got it all correct. On another note I have changed my habits, as far as spending. I do more cooking more at home than eating out and I quit smoking. But I'm still forced to work a 3rd job now because I can barely survive off of the 2 checks I'm bringing home already. Times are just hard right now and any extras that I have to pay for (i.e. FICO score) I'm not going to do because that's money I could use toward a bill, food and necessities.

[Anonymous]

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@Anonymous wrote:
I agree and disagree.. FICO scores are expensive. But in terms of rebuilding your credit, knowing your FICO score is not that important. You should be focusing your efforts on what is on your credit report, and researching solutions how to fix it. A FICO score is like a Premium channel on cable TV. . It is not necessary to rebuild your credit. You SHOULD ONLY buy your FICO when considering a loan...If not..Don't buy it if you can't afford it. Pay the extra $10 to $15 on a debt if you are maxed out. As far as programs for people to get free FICO scores. I disagree. It would be nice if there were free programs out there to get a FICO score. I certainly don't like to pay for it!!! But it would also be nice if there were more free programs out there to give me free concert tickets ,free cell phone, free navigation for my car, give me free high speed internet.. Do you see where I am going with this?

Message Edited by Pants on 08-14-2008 05:01 AM

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As far as the program goes I'm just saying that if you fall into a certain poverty level you should receive the services for free. Perfect example, currently I don't have health insurance. But when I do go to the Dr. they have a program in place where you meet with a financial counselor and they RATE you based on your income, pay stubs and or taxes. Based on my rate I receive 100% of my medical services for FREE and 80% of my dental is covered by them as well. If there was some type of financial program based on this I believe it would help a lot of people who are considered to be at poverty or below the poverty line.

[Anonymous]

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@score_building wrote:

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@Anonymous wrote:

sorry, i just don't agree with you. unless of course you routinely work for free and don't expect any compensation for your time and talents.

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I also agree and disagree.  which 'talents' exactly are you referring to- the fair isaac formula and the roster of duties of each employee, and how are you quantifying their value?  how much profit is it reasonable to be compensated for said time and talent w/ respect to a financial system that one or someone like one had nothing to do with setting up?  and whcih you gotta pay and pay dearly to play...i wonder if you would disagree if you were a paragon of will and morality who still hadn't found a way out of cyclical urban or rural poverty or a way into a financial system set up by the monied classes for their benefit. 

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@Anonymous wrote:

fyi, you can improve your credit w/o knowing your fico score, and you can obtain 1 report a year for free from each of the big 3 at annualcredit report dot com

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true and valid point but only the poor are forced into that guessing game that you apparently deem to be fair.  It isn't a mistake that a poor person still may not be able to afford to buy their score. how literal:  the poor don't know the score (ie.  can't play on the same level playing ground as the monied classes).

your credit score isn't like a princeton review class for a grad school exam.  It's not elective:  everyone should have equal access regardless of income, sorry i think you've somewhat oversimplified the plight of the poor and how it degrades their possibility for financial advancement in the current system.

Message Edited by score_building on 08-15-2008 03:10 AM

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Finally someone understands where I'm coming from.

[Anonymous]

Pants wrote: I can't see how renting an apartment or a house you would need to look at your credit score or applying for a job. MOST of it is common sense. If you have a bankruptcy, foreclosure, collections most people know what to expect. You must not be keeping up with current news, because now a days everything seems to revolve around your credit score. You can't rent an apartment or house or even get a car if your credit is bad. They look that information up...and if u do have bad credit they make you take a co-signer(and that person must be in good standing too!). And now a days lots of jobs that people are applying for look at your credit score as a part of their background check. Just last month they did a story on the news about a woman who didn't get a job because her credit score and report had low and bad marks on it. And the job she applied for was the same field/type of job she had been working in for over 10 years. Of course I think it is ridiculous that they do this, but it is happening more and more. Personally if I've been working in a specific field for 10 years and I have the experience I would think that would have precedence over my credit score, but I guess that's not the case anymore.

[Anonymous]

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@Anonymous wrote:
I do believe legislative steps should be taken to improve the accuracy of information on credit reports. Credit reports should be considered a published document, like a newspaper, with libel laws in place. Just like a newspaper can be sued for substantial damages if it prints something false about me, so a CRA and creditor should likewise face defamation of character liability if they put something false on my CR, or, through inaction, allow false information to be propagated.

If the penalty for inaccurate data was $2500 for the first offense and $5000 for subsequent offenses rather than $1000 for any number of occurrences, I'm willing to bet we'd see a LOT less bad data on credit reports, and correcting bad data would be far easier for consumers.

That's really the source of probably 80% of consumer frustration expressed on these board: getting bad data corrected is like pulling teeth, if not worse. If the accuracy of data on CRs was near 100%, much of this anger would evaporate.

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You've opened my eyes to a whole new light. I would have never thought to claim libel. You make a valid argument. I guess the next step would be to try and start a legislation to get this into play.

[Anonymous]

I totally disagree with you.

If you apply for an Apartment.. What if the landlord or managment pulls a Mortgage enhanced score? That can be a 50 point difference than your true FICO score.

What if the employer you are applying for a job uses Fico's Bankruptcy score which is totally different than a Fico score. The lower the number on the bankruptcy score the better. You can't buy those scores online and they are not avilable to the public. What if you are shopping around for a credit card and the credit card company uses the Credit Card Enhanced score? In that case knowing your FICO score is pointless.

I don't see the argument between health care and a program to offer free fico scores to the needy.

Heath Care is a life or death situation. You are not going to die not knowing your Fico score. Heating assistance, energy assistance, or food stamps help to give you shelter, and put food on the table for your family. Free Fico scores do not provide shelter, heating, or put food on the table.

Message Edited by Pants on 08-16-2008 02:09 PM