fused111 wrote:
The jury has not reached a verdict on this. It is believed FICO will begin to do this with their new scoring model but it has not been confirmed yet.
Yeah, right, sure.
OK, I'll bite. What exactly will be the criteria for determining whether a given CC or loan is prime, medium, low, subprime, or sub subprime? Remember that BTs, cash advances, and purchases are sometimes under different APRs and may be in different Primegories. If I have $3,214.69 from 0% APR BT, $783.34 from 12.5% cash advances, and $948.13 from 7.8% purchases, what's my CC Primegory this month?
I daresay the lenders would decide up yours FI, and refuse to report any APR info--along with the class action suit that would bury tiny FI with $1.3 billion in assets.
Ever read the TOS? All the recent credit repair is forbidden talk jibberjabber? It was came about because of a lawsuit brought by The Three Stooges (EQ, EX and TU). Experian has but $2 billion in assets.
Now consider that the 10th largest U.S. bank, State Street Corp, has $88 billion in assets. Citigroup has $2 trillion in assets. The lenders could dig a hole, stick FI in it, wave bye-bye, and they'd move on their merry way using Vantage or a myriad of other scoring schemes. Done. Over. Next.
The CRAs are street punks. The banks are the mafia. Not the real life often goofball mafia, but the Hollywood big screen, all knowing, all powerful, kill your horse and stick it's head in bed with you while you sleep between snores mafia. They got guys who make Luca Brasi look like a punk and who don't even fear Vito Corleone himself. I am speaking figuratively.
FICO score is all about risk, not how much you like the particular loan program or how appealing the terms of the loan may or may not be. Term of the loan, interest, payments, downpayment, rewards, cash back, etc. are all what might well be deemed priviledged information. None of FI's FICOin' business.
Debtor #1 drives a financed $110K Mercedes, lives in an $950K home, and earns $300K a year. But he's late on his mortgage, car loan, or CCs at least 4 times a year. CCs balances have been steady climbing, he's maxed out 4, paying the minimums, just got a 5th CC 2 months ago and he's starting to run that one up.
Debtor #2 drives a 4 year old Chevy (paid off 1 year ago), lives in a $110K home, and earns $45K a year. He's never been late, has 2 CCs, util is about 7%.
I don't give a rat's butt about the CC APR. I know who's a bigger risk.
OCs would fight it tooth and nail because they know they are in a competitive business. Posting the loan APR info in CRs would cause soft pulls on your CRs to skyrocket as the CCCs got into a dirty, scappy, knock down, drag out fight.
"Heh there Mr. Jones, this is Tom from Citibank Credit Card Services. We noticed that you have a balance of $2,100 at 18.9% on your Chase MC. Sir, we can beat that, and then some. How's about we BT that balance over to your Citibank VISA at say 14.9% for 6 months?"
The OCs know it would happen because someone would start and it would snowball from there. They make big bucks off high APRs and anything that knocks it down is bad for business.
You might have FICOs in the 800s but still have a couple of $500 CL, 19.2% CCs in your wallet. Why? I don't know. You're a bad negotiator. That's what high APR CCs mean. Has zero to do with risk.
OK, enough of my ranting and enough with the nonsense. Show me one single, solitary, even remotely credible article speculating about this anywhere in any remotely credible news source. Bathroom walls don't cut it.
