""FICO 8" vs "FICO 5-4-2 Mortgage" Scores

[Anonymous]

I don't feel trying to draw a comparison between the members of this forum and an early 90's game is very fitting.

[Anonymous]

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@Anonymous wrote:
What % of lemmings don't jump ?

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I'd say 98%...maybe higher.

Lemming Suicide Myth - Disney Film Faked Bogus Behavior

"The lemmings supposedly committing mass suicide by leaping into the ocean were actually thrown off a cliff by the Disney filmmakers"

[sarge12]

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@Anonymous wrote:

The entire Credit reporting industry is a scam. They want you to pay a monthly subscription fee for Scores  that are totally usless. 

I have been told many times by the 3 major companies, Equifax, TransUnion and Eperian that the scores given to you are just a guide and that the lender creats the score by using their own formula. If they keep the scores low then you pay higher interest. Industry wins !

If you take the info you get as gospel you feel confident you're getting an acurate report. You go apply for a credit card, or auto loan only to be turned down because the lender says your scores do not meet their requirements. You get screwed again because you now have another inquiry on your report and bang your score goes down ! Had you known your true lenders score you may have decided to not even apply, but you did! Too bad ! And they WIN !

        We all know that the rich don't need credit but they use it for various financial reasons, but the low income guy,  the middle income guy, the regular shmoe gets raked over the coals paying 30% and more on your credit cards. I don't really know this but I wouldn't be shocked if the Credit Reporting Agencies are getting a kick back from the lenders,(only speculation mind you!).

        Changing federal banking laws can make this fair but the bankers and credit card companies and reporting agencies are making too much money to ever let this happen. 

        If all this tweeks you then google class action law suits against Credit Reporting Agencies ! This could surprise you. I am an independent law biding regular Joe just like most of you . I am also a participent in a class action law suite being brought against these firms. You may want to check it out yourselves. Thanks for your ear !  

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Wow how do I even respond to this...lets start with you saying you have been told this by the 3 major CRA's. The CRA's are companies with many employees, the fact that someone at one of these companies told you this means little. The CRA does not speak. On the 30% and more comment. If you do not carry a balance the interest rate is 0%, and you still get rewards on a lot of the cards. If you are paying high interest it is because you are, or have, spent money you did not have. Not being rich does not cause someone to spend more than they make or be irresponsible with credit. As far as CRA's getting kick backs, the lenders straight up pay for those scores. Credit scores were developed to assign a risk of default or serious delinquincy on debt, and sell that to lenders. It was not created to give consumers the score. Good luck in your endeavor.

[Anonymous]

Hey Sarge, I'm going to assume , yea I now the phrase, I'll take my chances, that you're a vet, so ty for your service. I too served. So on that front we are even.
Being behind on your bills , if that were the case, is not always the fault of the creditor. Have you heard of the gr8 recession of a few years ago ? Millions of people wound up behind the 8 ball because of unscrupulous LENDERS. Billions of $$$$ were lost by innocent victims of this gr8 nation. We didn't just lose money we were ROBBED ! By whom may I ask? Why the LENDERS !! AND who got bailed out? No, no way ! You know, go ahead say it , come on say it, you know. Yes the LENDERS !
Many people are STILL getting out of the hole dug for them Not by them !
Now lets address the CRA'S as you call them. I must be one lucky guy to have spoken to the only 5 or 6 employees, supervisors included, of the 1000's of people working in the industry to tell me the same thing. Do yourself a favor , call any or all of the big 3 agencies and ask for yourself. Please , prove me wrong that the creditors all have their own criteria for extending credit and changing the scores to suite .
You may have me on the KICK BACK issue but I did say, " I wouldn't be shocked if ".
Sarge, I appreciate your reply but what I have learned in my 71 years on the planet I believe what I have witnessed not what is told to me weather verbally or in print. Remember, the best way to predict the future is to study the past. History, as you already know, Repeats itself.
Over and over again !
May God bless you !

[Anonymous]

Thanks Cassie, I did not know that. I guess an old dog can learn new tricks. I'll have to check that out though if you don't mind.
Thanks for your reply, God bless!

[sarge12]

@genmat712...nope, not a veteran at all. The sarge in my username is because I was born a Sargent, been one my whole life. The truth is, the mortgage crisis in 2008 was caused more because of politicians than anything. The lending industry had at one time required more stringent lending requirements. Washington politicians used leverage to make lenders lend money the borrower really could not handle the payments of. It did not cause losses for a long time because the value of houses would increase fast enough for borrowers to re-finance or even if foreclosed did not cause banks to lose, because the house sale covered the loss. Then something happened that should have been expected. People could not meet the payments, and so many defaults meant there were more houses for sale than the market could bear. As a result house values declined, which made millions ow more on their house than the fair market value. The banks did not help, because they were even lending more on a house than the market value even on second mortgages. The politicians hand in this fiasco should not be overlooked. The politicians wanted to see all the happy new homeowners rush to vote for the politicians who made it possible.

[Anonymous]

First, ok, I'm an ass ! Now what about all the people u say don't know how to use credit. As we both know they had the Lenders and the Gov to do battle against. Davids against the Goliaths ? And how about giving the average American a little credit. Do you think they voted yes on permitting the lenders to charge 35 % on credit ? In my day there was a USURY law, today no one has even heard of the word.

[Anonymous]

@genemat712 There Still are usury laws. Welcome to MF, btw. However, might I suggest you start your own thread on your issue because you’ve kind of taken this one way off topic. Thank you For your insights though.

[Anonymous]

@Cruzzer1 A couple points I would like to make.

First, if you pay off your Chase cards, they will be the quickest to report that zero balance off-cycle and without you requesting it.

Second, be aware that the EX mortgage model is the oldest one and based on a totally different algorithm than the EQ and TU mortgage models. Consequently there is a great deal of difference and it is believed to be much more sensitive in many respects. Other members have much more detailed information than I.

[Anonymous]

Srry B-Man, I'm new to this. No more from me here. I thought I was just replying to Sarge.