I am convinced the FICO algorithm is fixed..

[Anonymous]

This was from the quarterly FICO monitoring through this site. A few posts ago, I listed my 4 negative factors and 2 positive ones. I think I'm angry because with me the model has run out of legit reasons to ding me besides the debt to credit ratio and bk and lists dumb reasons like 13 years isn't enough time to generate a solid history, especially with an impeccable history post bk, almost 7 years ago!

[RobertEG]

I am currently a US citizen who, within the past year, became a resident alien in the Philippines.  There are no consumer credit bureaus here, and thus of course, no credit scoring for consumers, let alone FICO scoring. 

If you think creditor reliance on credit scoring risk analysis is detrimental to the consumer, try living in a society where decisions are made primarily on subjective evaluation, with no consideration of consumer risk analysis.  One must compete for credit with those who have totally invisible prior credit histories, many of which are very poor histories, and thus jack up the interest for most types of credit.  Typical CC interest rates here are 4% per month, and even secured loans come in at around 30% APR. Lower risk consumers pay the price for poor risk consumers.

Sure, credit score risk analysis is not perfect, but I would much rather have it than compete for credit without it.  Just like many aspects of capitalism in the U.S., it may be subject to some abuse, but it works more often than not.

[striders]

I used to live in Singapore and Indonesia as part of my job. Back then, there is no such things as credit scoring although I believe Singapore now have some sort of credit scoring. The APR for credit cards were high, and don't get me started on Auto Loan interest rates!

However, the upside is that it made the people there tend NOT TO RELY ON CREDIT for purchases. They'll use cash if they HAVE IT, and don't if they DON'T HAVE IT.

So the upside is that it made the people be more concious on purchasing stuff and they ended saving more money for their retirement, etc. Compare this to the mindset of the people here in the U.S.A.. well.. you know the story..

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@RobertEG wrote:

I am currently a US citizen who, within the past year, became a resident alien in the Philippines.  There are no consumer credit bureaus here, and thus of course, no credit scoring for consumers, let alone FICO scoring. 

If you think creditor reliance on credit scoring risk analysis is detrimental to the consumer, try living in a society where decisions are made primarily on subjective evaluation, with no consideration of consumer risk analysis.  One must compete for credit with those who have totally invisible prior credit histories, many of which are very poor histories, and thus jack up the interest for most types of credit.  Typical CC interest rates here are 4% per month, and even secured loans come in at around 30% APR. Lower risk consumers pay the price for poor risk consumers.

Sure, credit score risk analysis is not perfect, but I would much rather have it than compete for credit without it.  Just like many aspects of capitalism in the U.S., it may be subject to some abuse, but it works more often than not.

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[Anonymous]

I read your thread title and thought to myself "I'm so glad someone finally fixed that darn thing."

[Anonymous]

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@Anonymous wrote:

I read your thread title and thought to myself "I'm so glad someone finally fixed that darn thing."

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[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I read your thread title and thought to myself "I'm so glad someone finally fixed that darn thing."

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[Anonymous]

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@Anonymous wrote:

I read your thread title and thought to myself "I'm so glad someone finally fixed that darn thing."

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My thought EXATLY when I saw this thread, but I thought to myself maybe it'd be offtopic if I posted that

[creditchild]

hey max this scoring stuff is all a joke. its crazy the way this stuff works. as i told someone before, most

of the advice we get here is all speculation. theres someone the controls this score stuff. i tried just about everything

to bring my scores up and i've been sitting at the same score for almost 8months. think about it for a minute, the more good

you do, the more your score goes down. for example when my credit card balances goes up, i'm quickly dinged,but just as fast

i get them back down(utilization) and i don't recover the points i've lost as quick. its crazy. remember no one thing works for everyone!

i've called the people at myfico and they can't even explain. and the simulator is a joke, i've tried to simulate what would happend if i paid down

my balances over a period of three months what would happen,it showed my credit would be well over 700,well its been over 6months and i'm

still in the lower 600's! its rediculous

[Anonymous]

That's how a lot of things work though. i'm in college and I had A's in my class, I missed one ten point quiz and it brought my score down to a C. I barely made it back to an A by the end of the semester even though I got 55 out of 50 on an exam. It's much easier to lower any kind of score than to raise it.

[striders]

Your comparison with the college quiz and/or grade failed. In college, you KNOW what is the OUTCOME of your grade or quiz if you miss xx points or questions. You CAN bring your grade UP if you study hard and aced future tests.

With credit scoring, you DO NOT know EXACTLY what would happen when you do certain things related to your financial.

My take? Credit scoring EXIST to benefit big banks AND **bleep** customers. Take a look at Experian FICO scoring: they no longer sell that to public. So if I apply for a credit and qualify for 5.99% but the bank said my Experian score is "low" and I only qualify for 9.99%, there is nothing I can do because I do not know the score.

 

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@Anonymous wrote:

That's how a lot of things work though. i'm in college and I had A's in my class, I missed one ten point quiz and it brought my score down to a C. I barely made it back to an A by the end of the semester even though I got 55 out of 50 on an exam. It's much easier to lower any kind of score than to raise it.

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