FICO due to no mortgage and credit card only debt

[xenon3030]

Lol . This post made my day .

Fico scoring is for free, not a business, and it helps businesses and lenders to take decisions immediately. All customers can access to them almost for free. If it does not applicable to you and you are in the lower end of scoring, you may not qualify for good loan or CC rates. 

[FICOdawg]

Umm, you may want to tell the public shareholders of FICO stock and those who are paying customers of FICO that their $1.5 BILLION dollars of revenue does not make it a business.    Do you even understand the FICO business model?    FICO has been sued for anti-trust.....   Kinda hard to sue a non-profit

Here's another nugget.      I have enough pre tax principal to pay off both my CC and car loan without tax penalty from my Roth.    That would be an absolutely dumb thing for me to do for the purpose of chasing a FICO score considering I could not just dump the tax advantaged money back in later.       I actually don't need a lender for anything.   Use of my CCs is an advantage as I bascially travel the world for free due to all the miles I get.    If I just closed everything and let my credit evaporate the only hit would be to my insurance rates (which would also be absurd given my financial postion and more evidence of how credit scoring is dumb).      I believe you are projecting your own beliefs and/or situation into this.        

This all started with me questioning why more score was low and assuming there was bad info on it.    So, I happen to be in the situation where the formula is wildly inaccurate for my situation.      I'm glad there are those who spend the time researching FICO scoring that the rest of us benefit from.       With a tiny bit of knowledge I can now game my FICO score.    However, hardcore belief that a FICO scores accurately portrays ability to manage debt is a major fallacy.      Be objective.   

As of taday my Experian score is 700 on the nose.   Zero clue why it bumped up 5 points.     All I can say is, watch...

[xenon3030]

Lol, with that hilarious Fico8 score, you must be living the high life! 😂 Care to share the secrets of your financial wizardry with us mere mortals?

[FICOdawg]

It's called saving.    Without my ex wife, I'd have a LOT more money saved.     There is no wizardry.    I invested in my education and worked hard in my career and got lucky to be connected to the right people along the way who recognized my efforts.      I am an anomoly.    I aged out of the foster care system and had no support network so it was sink or swim.   I'm a lucky SOB to have gotten out of the system and could have EASILY gone the wrong path.    My childhood trauma is what causes me to be conservative to save, I have no inheritance coming.    If you want to make light of this, that's on you, but you may want to be careful with throwing shade...

I actually feel sorry for you if you think a FICO score defines you.

[xenon3030]

Congrats on your successes. Anyway, at the end of the day, if you want to get qualified for good rates (loan, CC, etc), you need to meet their Fico criteria.

Fico scoring might not be perfect, while it almost "meets the purpose", for either customer or lender. If you have some better ideas, you are welcome to start your own scoring system and if would be much better, the financial institues may use your method in future.

[FICOdawg]

I'm at the end of my career.     No desire to get into another endeavor but I absolutely could come up with a better method.    FICO is a scam.   It's been debated for ages.      FICO hurts consumers and their desire to lobby Congress plus the lawsuits they've encountered is just a wee bit of reality that deflates and argument about fairness to consumers.    

I just happened to get caught in the FICO formula net for allowing my final debt to all be credit cards which for me will be short term.    Even after only a few months my score will be 750+.    Can I be one of the cool kids then?

[Patient957]

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@xenon3030 wrote:

Fico scoring is for free, not a business, and it helps businesses and lenders to take decisions immediately. All customers can access to them almost for free.  

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Either you're trolling or you have no idea how all of this works.  I honesty can't tell which.

The Fair Isaac Corporation aka FICO is a for-profit public company that trades on the NYSE.  It has almost $50B market capitalization, which increased over 4% in today's trading alone.

And, no, not all customers can access FICO products for free.  Banks and other lenders are FICO's main customers, and they pay big money for FICO products.  FICO's annual revenue is over $1.7 billion.  That's billion, with a B.

So, yes, it's a business, and a pretty darn good one at that.

[Patient957]

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@FICOdawg wrote:

Let's start with my $40k in CC debt.      FICO heavily weights credit card debt/utilization.    However, two consumers can have entirely different ability to pay it off.    Yet, that's not considered.     In my case, using the CC during the final part of my divorce made the best option for me.  

At my income level, my $40k in CC debt is not that same as another consumer at a lower income and more loans to service.   However, those two consumers get the same credit scoring penalty.         

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While credit scoring models don't take income into consideration, lenders can and do.  Your income absolutely matters; it just doesn't matter in the way you want it to.

[Patient957]

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@FICOdawg wrote:

   I'm glad there are those who spend the time researching FICO scoring that the rest of us benefit from.       With a tiny bit of knowledge I can now game my FICO score.     

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Exactly.  And after you game your way to an 850 FICO, not only will you appear to lenders as less of a credit risk, you actually will be less of one.

[Thomas_Thumb]

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@Patient957 wrote:

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The Fair Isaac Corporation aka FICO is a for-profit public company that trades on the NYSE.  It has almost $50B market capitalization, which increased over 4% in today's trading alone.

And, no, not all customers can access FICO products for free.  Banks and other lenders are FICO's main customers, and they pay big money for FICO products.  FICO's annual revenue is over $1.7 billion.  That's billion, with a B.

So, yes, it's a business, and a pretty darn good one at that.

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I'd say so. Stock price has tripled in 2 years. Gotta pay to play. Someone foots the bill for every score pulled.

Looking forward to some monopoly busting from VantageScore ... But beware VS is controlled by the big 3 CBs.

Wealth clearly correlates with ability to pay back debt but, not willingness to pay. Do billionaires ever declare bankruptcy and remain wealthy? Yes they do. Do they refuse to pay contractors for services rendered - absolutely!

A score that measures debt management, not wealth is a valuable tool for lenders. Thus the willingness for lenders to buy the score(s) and the rapid growth of the industry.