Comments on: 15 Reasons Why You Should Ignore Your FICO Score

By: Michelle

Michelle — Thu, 04 Aug 2011 11:11:10 +0000

Thank you so much for this info. I finally figured out about a year ago that this credit score thing is a racket to keep people using credit and in debt. I bought my house 3 years ago and plan on living in it forever. Credit scores keep people wanting to buy on credit. I will now focus on building my net worth.

By: Larry

Larry — Mon, 25 Jul 2011 02:12:24 +0000

I’m sure the Wall Street investment bankers who stole or squandered billions and drove the U.S. economy into the ground probably had (and still have) excellent credit scores, but that does not reflect quality of character. Credit scores should not be used to determine eligibility for employment. There is no correlation between credit scores and job performance or the chances of defrauding an employer. None.

The greater problem is that we have “outsourced” our lending decisions to mysterious people behind the curtains who have developed a bizarre scoring system that few can understand. Can anyone tell me why my score should be lowered because I rent a car with a debit card (effectively paying cash) instead of a credit card?

I didn’t think so, yet the FICO folks (who have no particular statutory or legal authority) yield an inordinate amount of power over individuals who have no clear avenue of appeal or recourse.

Certainly we need ways to judge borrowers and then price risks appropriately into borrowing and lending costs, but the current system is unfair, farcical, and does far more damage than it prevents.

By: Robert

Robert — Mon, 18 Jul 2011 20:19:42 +0000

Any forgiven debt is considered cash money in your pocket by the IRS.

If you owe 10 thousand and settle for 3 thousand you owe income tax on 7 thousand.

By: Robert

Robert — Mon, 18 Jul 2011 20:10:37 +0000

If you have a homeowners or auto insurance policy your rate will be determined by your credit score. Less than perfect credit=much higher insurance premiums.

By: Walt M.

Walt M. — Fri, 08 Jul 2011 04:19:37 +0000

I bought a new car a 2011 eight months ago. I put approximately one-third down and financed the rest at 3.9% APR. for 72 months. Recently while doing my on-line banking a window came up indicating new lower automobile financing rates plus a 0.25% additional reduction if one subscribed to auto pay. So I went to the banks web site and for refinancing a current year car was show an inertest rate of 2.4%. So the next day I went to a branch of the bank and applied for a loan. The bank agent indicated that one the information was filled out on the computer I would have a response back in a few minutes if I was approved and what the rate was. Almost immediately my credit score came back from Transunion . It showed that I had a 780+ credit score. The bank agent indicated that was an excellent score. After waiting over 20 minutes for a reply the bank agent said that I looked like it would take awhile and would call me the next day. That day passed and I called the banks agent on the third day. I was unable to get her she was out to lunch, then busy with a client. Finally another bank agent returned my call and said I was approved for the loan my rate was 3.4% and my payments would be $20.00 more per month than I have now. I know in the notes field the bank agent placed as reason for refinancing was to have a local bank to deal with and to reduce the monthly payments. Anyway I asked to speak with those making the decision and first spoke with the closer then with the underwriter who then had to speak with his supervisor. I asked them why I didn’t get the rate advertised and of course went through this mumbo jumbo about how there is a computer program that takes a bunch of factors into consideration. I asked why it took the computer three days to come up with a response. I asked am I being discriminated against due to my age and being on Social Security Disability. Didn’t a good credit score of 780+ mean anything? Essentially after all that was said and done the bank lowered my interest by an additional 0.25% which only lowered y payment by a dime. I told them they obviously manipulated the loan so they could say they offered me it but unattractive enough so they knew I would not take it. If I knew when banks advertise a low loan rate it is essentially a fraud I would not of wasted my time or the banks and at the same time impacting my credit score with the inquiry.

By: Matt J.

Matt J. — Fri, 08 Jul 2011 00:22:28 +0000

Yes, it impacts all these things, but it should not. This is an example of how the credit system has been so thoroughly abused, turned into a Kafkaesque labyrinths of excuses for the rich to squeeze more money out of the less well off.

If President Obama is successful setting up his regulatory agency to protect financial consumers, their kind of chicanery, jacking up interest rates payments because of an unrelated late bill. will be illegal.

It should be illegal for companies to require credit reports for most job openings, but I don’t see that happening any time soon, even with the new agency. That reform will take longer.

By: Matt J.

Matt J. — Fri, 08 Jul 2011 00:18:25 +0000

Sorry guy, but the shackles are already on quite tight, whether you check the scores or not. Ignorance is NOT bliss here.

By: Matt J.

Matt J. — Fri, 08 Jul 2011 00:17:35 +0000

But the FICO score is no longer used just for -buying- a house. Renters now usually have to allow the prospective landlord to check their credit scores, too.

Now this is an example of abuse of the credit system, true. But reform is not going to happen overnight. In the meantime, even renters need a good FICO score, or the landlord will rent to someone else with a better score, falsely believing that he is less likely to give problems about paying the rent on time.

By: Matt J.

Matt J. — Fri, 08 Jul 2011 00:15:12 +0000

How could not not notice. Of course it is tongue in cheek. Completely so. And only rarely is ignoring it completely as you did a good idea. It seems to have worked out well for you, but it would be rash to expect it to work out so well for everyone. That is just not going to happen.

By: Matt J.

Matt J. — Fri, 08 Jul 2011 00:13:03 +0000

The sarcasm of this article is incredibly childish. The author has done all of his readers a huge disservice by writing it.

The truth is that unfair as the whole credit and credit rating systems are, we are all better off paying attention to the FICO score and trying to keep it as high as practical. We can’t wait for reform of the rotten system.