[If you can explain a better formula for how to decide who gets dinged for opening a new account and who doesnt that makes sense I will gladly support you in presenting it to them.]
So you work for Fair Isaac? You must feel pretty powerful. I told you my solution in my previous post: FICO should look at the score of the applicant (whether for a CC or a loan or refi). If it's over 700, they shouldn't get their score lowered. 700 proves they're responsible.
[I dont think you can say just because they have a high credit score means they wont go down. For example I had a friend whos dad had EXCELLENT credit all the years we grew up. Post High-School he bought a new house after paying off the first one and gave the first house to my friend.]
That was was a big mistake.
[They always drove new cars every two or three years they would trade them in for another new one. He could get credit anywhere he wanted. Fast forward a couple of years he had two cars repossesed, his home foreclosed on, and credit cards charged off. He is now getting judgements and lawsuits.]
Maybe he went crazy. Why was he not behaving that irresponsibly before? Why does one deadbeat have to make life miserable for the rest of us?
[Same job as always just went downhill due to circumstances I wont disclose.]
Like he got laid off because all our jobs are being sent overseas? I have a friend who did deep troubleshooting for HP. By "deep" I mean he knew the machines and every bit of software. He got laid off and now someone in Bangladesh is reading a help manual that won't do huge companies that use HP mainframes any good. Is that good business? To endanger the whole economy tomake huger profits?
[The point is there is no "invincible". Bad things happen to good people.]
And FICO adds to that.
[If you loaned out money without a risk modeling service you would go under FAST.]
I investigate my rental applicants, which is similar. I even rented to a family that had gone into bankrupcy, after interviewing them and their grown kids a couple of times. They always paid on time and left the house sparkling. I had a tough clause on paying late.
[I am not saying it doesnt suck but you get all the points back in a couple of months
Previously you said a year, and FICO told me "one or two years". If it was a "couple" of months it wouldn't be a big deal.
[and if you dont open new accounts often you likely wont notice the difference anyway.]
I don't. But I was shopping for a refi and although the companies said their inquiry would be "soft", they came through "hard" & lowered my score. I was able to get one of them to convince the credit bureaus that they'd meant for it to be "soft" but in the other case, the guy never made an effort, and, because he worked for Countrywide, and B of A didn't have a record of our phone calls, I had to wait it out.
