@Anonymous wrote:If you extent this philosophy throughout our economy what you are saying is that debt is a positive entity and that more debt is good for those living and working in America. This is preposterous. Our country's massive debt is unsustainable. Our country's financial system will soon collapse under the weight of this debt. FICO encourges debt and this policy is drowning the citizens in debt. The average debt of every man, woman and child in America is $54,000. Total personal debt is $17.5 Trillion. This is unsustainable. I'm sorry Mr Fair and Mr Issac but your system is flawed. The sad thing about it is that this flaw will not be recognized until the collapse of this country's financial system.
+1
@Anonymous wrote:
@Anonymous wrote:If you extent this philosophy throughout our economy what you are saying is that debt is a positive entity and that more debt is good for those living and working in America. This is preposterous. Our country's massive debt is unsustainable. Our country's financial system will soon collapse under the weight of this debt. FICO encourges debt and this policy is drowning the citizens in debt. The average debt of every man, woman and child in America is $54,000. Total personal debt is $17.5 Trillion. This is unsustainable. I'm sorry Mr Fair and Mr Issac but your system is flawed. The sad thing about it is that this flaw will not be recognized until the collapse of this country's financial system.
I disagree. FICO doesn't "encourage debt" nor does it suggest that "more debt is good" as you put it. You can have a 800-850 score and have no debt at all. There are plenty of people on this forum that may use a ton of credit cards but PIF every month and as a result have great credit scores to show for it. That's not debt. The category of utilization for example deducts points for increased debt and increases points when debt is paid down which is completely converse to your argument.
I beg to differ. If you borrow money from someone and are obligated to pay it back, that's "debt"
Yes the Fico scoring can be strange at times. But I think you still do what is best for you, before doing something else.
@RM21 wrote:
Yes the Fico scoring can be strange at times. But I think you still do what is best for you, before doing something else.
Unfortunately, the way our society is set up, one of the things we do need to do is pay attention to our FICO score. You never know when it's going to rear its head.... it's not just credit cards, auto loans, and mortgages. It also comes up when renting an apartment, cosigning on a lease, taking out car insurance, getting a cell phone, etc.
So I find it hard to distinguish what's best for me, and what's best for my FICO score, because the fact is that one of the things that is best for me is having a good FICO score.
It's unfortunate, even foolish, that the FICO algorithm will ding you for having all your credit cards paid down to zero, and hammer you if you've paid off all your installment loans and have none open. But I'm glad that I learned about it.
@Anonymous wrote:Your story of the 2 men and their overdue accounts is a perfect example to illustrate that there is dysfunctions and bias in the seriously flawed system. Their IT program only knows the difference between day and night. Nothing else matters and that is intentional. Any justification of late payments does not even include death. And every citizen is subjected to this irrational review. Only in America can something like this happen.
Not true.
P.S. I believe Experian is a British company.
