FICO should release their formula

[Junejer]

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@Anonymous wrote:

IMHO....Its ok for fico to have a secret way of computing. Its a business, however, I do have a concern over the unfair treatment of some, if not all, of us. examlple like, a collection agency verifies, report date changes, now it looks brand new, should not be allowed. All degros should come of after 3 yrs of perfect payment. It may not count in scores, but it sure does in manual review. You should not lose more points for 1 battie because you have a 700 score, and I lose 1 point for another battie just because I have 5 more than you.  Any way, fico is doing a business, I agree with this, but the scoring rules should change and be fair to everyone, because we all depend on credit not just the wealthy.

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The buckets work in our favor. If not for buckets, the 500s would always be 500s, as they would be compared to the 800s.  IMO, the buckets make it fair.  I don't think that it is fair to compare a 500 FCIO to an 800 FICO.

[MidnightVoice]

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RUSTY101 wrote:

IMHO....Its ok for fico to have a secret way of computing. Its a business, however, I do have a concern over the unfair treatment of some, if not all, of us. examlple like, a collection agency verifies, report date changes, now it looks brand new, should not be allowed. All degros should come of after 3 yrs of perfect payment. It may not count in scores, but it sure does in manual review. You should not lose more points for 1 battie because you have a 700 score, and I lose 1 point for another battie just because I have 5 more than you.  Any way, fico is doing a business, I agree with this, but the scoring rules should change and be fair to everyone, because we all depend on credit not just the wealthy.

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The CRAs are a pain and frequently wrong!  But as regards the time - we are back to the statistics I am afraid.  The time a derog stays on is nothing to do with Fair Isaac, and they calculate what that derog means (statistically) in terms of people tending to default.

It is far from perfect, but if the CRA info is accurate, it is probably pretty accurate for most people

[unknown_entity]

But to broadcast fear into people to get them to subscribe to information that is theirs to begin with?  That's pretty lame.  The CRA's and all the off-shoots of them including FICO has used the "identity theft" marketing angle to the hilt.  When the fact is that noones identity has been stolen.  What has been stolen is the credit card companies money.  Money they were so eager to loan, that they loaned it to someone other than you.  And all of the CRA's and their off-shoots eagerly jump on the band wagon and use it to sell their products.   Shouldn't there be something in the "fair lending laws" that says that isn't fair for credit card companies to give someone other than me a line of credit in my name?  Why should the individual citizen be responsible for corporations' lending blunders?  We shouldn't be.  But the powers that have control of lobbiests and in turn the government officials they are paid to influence have decided that it is "identity theft".  I say start making lender responsible for loaning money to the right person and if they don't, then make them pay for it. I bet identity theft would be a thing of the past with the quickness. IMO

[borg_cube]

unknown_entity-

You're nailing it. How about the fact that other lenders have cheaper and better access to your own credit histories than you do?

Why is it even allowed for a lender to share your personal information with another lender in the first place? By default that ability should be DENIED, and yet it's just the opposite. You have to stop them from doing so on a case by case basis.

The whole thing is insane. The shakedown must end. These FICO scores and their overuse and reliance in almost every financial aspect of people's lives has led this nation into a spiral of debt. Savings are non-existent. A culture of immediate gratification and entitlement has taken command. Government is not only unaccountable, but is hand in hand with the lenders in the scam.

Fine Mr. Bear Stearns, you made risky loans, you go out of business like any other company would that did the same thing (for hundreds of billions of dollars less for that matter) and while you're at, pack your bags for Sing-Sing. But nooooooooooo, my fellow citizens and generations to come will have to bail out your pathetic behind while you still jet set from resort to resort drinking colorful adult beverages from a tall glass with an umbrella in it.

In my world, in my company, had I done the same thing to my customers and shareholders, I'd be hanging upside down in front of a gas station.

In my world, in my profession, if I dished out the health records I maintain in my possession to any other company willing to pay for them I'd have HIPAA lawyers all over my you know what in a matter of minutes. Why is my financial history any less sacred than whether or not I'm popping Viagra now and then? Answer, you already said it my alien friend, the fix is in, the pigs at the government trough are in a feeding frenzy that can't be stopped until the grain runs out. That time is coming soon.

[unknown_entity]

     Yeah, It certainly appears as if the cats in the bird cage and unfortunately we are the birds.

[Anonymous]

I love all of this rationalization under the cloak of capitalism.

IF there is a FICO, what should it really do? How about this? Why not just let people know if they pay their bills on time?

No one should be penalized for having installment loans versus revolving credit. You shouldn't be penalized for having high balances on your installment loans. The ONLY thing that should matter is....DO YOU, OR HAVE YOU, paid your bills on time.

Does it seem just a LITTLE BIT ODD to you, on your FICO reports, that for you to have better credit, you need to have more revolving loans? Who are they to tell you how valuable you are based on the type of loans you have? And then to give you LESS value, because you don't have the type of credit that they want you to have.

It just astounds me that we have people who defend this type of system that we have now.

[MidnightVoice]

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@Anonymous wrote:
I love all of this rationalization under the cloak of capitalism.

IF there is a FICO, what should it really do? How about this? Why not just let people know if they pay their bills on time?

No one should be penalized for having installment loans versus revolving credit. You shouldn't be penalized for having high balances on your installment loans. The ONLY thing that should matter is....DO YOU, OR HAVE YOU, paid your bills on time.

Does it seem just a LITTLE BIT ODD to you, on your FICO reports, that for you to have better credit, you need to have more revolving loans? Who are they to tell you how valuable you are based on the type of loans you have? And then to give you LESS value, because you don't have the type of credit that they want you to have.

It just astounds me that we have people who defend this type of system that we have now.

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Fico is a statistical calculation of the likelyhood of a person defaulting on a debt. It reflect the normal results of certain behavior patterns

Love it or hate it, it is used in the United States.

The best thing to do is (a)spend less than you earn, and (b) learn how to play the game and make it work in your favor.

Or - leave the country

[Anonymous]

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@MidnightVoice wrote:

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@Anonymous wrote:
I love all of this rationalization under the cloak of capitalism.

IF there is a FICO, what should it really do? How about this? Why not just let people know if they pay their bills on time?

No one should be penalized for having installment loans versus revolving credit. You shouldn't be penalized for having high balances on your installment loans. The ONLY thing that should matter is....DO YOU, OR HAVE YOU, paid your bills on time.

Does it seem just a LITTLE BIT ODD to you, on your FICO reports, that for you to have better credit, you need to have more revolving loans? Who are they to tell you how valuable you are based on the type of loans you have? And then to give you LESS value, because you don't have the type of credit that they want you to have.

It just astounds me that we have people who defend this type of system that we have now.

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Fico is a statistical calculation of the likelyhood of a person defaulting on a debt. It reflect the normal results of certain behavior patterns

Love it or hate it, it is used in the United States.

The best thing to do is (a)spend less than you earn, and (b) learn how to play the game and make it work in your favor.

Or - leave the country

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The problem is, there shouldn't be a "game" that you have to learn to play.

There is no way, in my mind, that anyone should have to tell you what types of credit to have, or how much you should owe, so as to give you a score.

Manipulating your behavior and spending habits, as far as I know, isn't captialism.

Message Edited by wordslayer on 04-13-2008 02:58 PM

[MidnightVoice]

But this is America, bastion of capitalism! All life is a game

[Anonymous]

Here's my problem with all this, Midnight.

It's like with car insurance. Yes, having a certain car can cause you to have higher rates. Having previous accidents can set your rates. That's fine, too.

However, telling you which roads to take, when you drive, is how FICO does. They tell you which roads you should drive, how many passenger's you should have in the car, what type of music you should have on the radio.

In essence, they are controlling your behavior to play a game. None of us want to play the game. We just want a system that tells lenders whether we pay or bills or not.