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Was reading about it and wondering... I know it's based on stats, but I honestly question the value of anything like it if they don't know your level of income, savings, even job type (whether it's prone to layoffs, etc.). Are any creditors actually using it? I was hoping at some point some credit card issuer would provide it to customers free, but it seems not so far.
@91173 wrote:Was reading about it and wondering... I know it's based on stats, but I honestly question the value of anything like it if they don't know your level of income, savings, even job type (whether it's prone to layoffs, etc.). Are any creditors actually using it? I was hoping at some point some credit card issuer would provide it to customers free, but it seems not so far.
My personal opinion? It is not something the creditors use they most likely already have their own algorhythms that calculate your 'resilience" before they decide to grant you credit. I think it was invented by myFICO to put a bit of fear in to the consumers who are not as savvy as most and get them to subscribe to the services. Mine is high based solely on my filing BK almost 4 years ago. It does not factor in better employment, 6 months savings, no late pays since BK, no collections etc. Like most FICO scores it focuses on one factor to keep the consumer suppressed. Ignore it.
I think that during an economic downturn, something like this could be used to maybe do a CLD to extremely bad actors. Specially focused scores for things like "breakout risk" are used frequently everyday.
@kilroy8 wrote:I think that during an economic downturn, something like this could be used to maybe do a CLD to extremely bad actors. Specially focused scores for things like "breakout risk" are used frequently everyday.
I wish I could recall where I read it, but I recall a story citing an anonymous retired FICO official that indicated CLD/CLI was one of the key reasons for developing the index. But don't bet anything over a dollar on my memory.
I've never heard of a lender using it.
Maybe it could be more useful when paired with a traditional FICO score? Idk.
I'm not aware of anyone who provides this score for free.
Sure some lenders use it as a supplemental source among their own data to make decisions. Lenders will never let people know all data sources they use whether traditional 3 CRA's, suplemental among the work numbers and similiar and possibly this among their own internal criteria etc.
Bingo!
@Cowboys4Life wrote:
@91173 wrote:Was reading about it and wondering... I know it's based on stats, but I honestly question the value of anything like it if they don't know your level of income, savings, even job type (whether it's prone to layoffs, etc.). Are any creditors actually using it? I was hoping at some point some credit card issuer would provide it to customers free, but it seems not so far.
My personal opinion? It is not something the creditors use they most likely already have their own algorhythms that calculate your 'resilience" before they decide to grant you credit. I think it was invented by myFICO to put a bit of fear in to the consumers who are not as savvy as most and get them to subscribe to the services. Mine is high based solely on my filing BK almost 4 years ago. It does not factor in better employment, 6 months savings, no late pays since BK, no collections etc. Like most FICO scores it focuses on one factor to keep the consumer suppressed. Ignore it.
@CreditCuriosity wrote:Sure some lenders use it as a supplemental source among their own data to make decisions. Lenders will never let people know all data sources they use whether traditional 3 CRA's, suplemental among the work numbers and similiar and possibly this among their own internal criteria etc.
+1. Many dont know for instance Cap1 uses Innovis on their decisions and the Big 3.