6
Still stumped by FICO?
Giving yourself a credit check
To view this content, Javascript must be enabled and Adobe Flash Player must be installed.
About the author
Tess Vigeland is the host of Marketplace Money, where she takes a deep dive into why we do what we do with our money. Follow Tess on Twitter @radiotess
At the end of 2007 I renewed a home equity line, and in early 2008 I got a disclosure notice from the bank that they had checked my FICO score with Experian, and it was 876 (or maybe it was 873, anyway close to that). And yes, it did say that the top of the scale was 850. It was followed by a lengthy explanation of FICO scores and a printout of the factors that had pulled my score down. The main factor was that I didn't have any non-mortgage installment debt payments. Now admittedly there was a statement that if my score was high, to ignore the automatic suggestions on how to improve the score.
Sorry Sandi that’s a myth. I don’t have a high credit score yet still have affordable insurance. I have a low monthly payment for my coverage because I have a high deductible. A deductible I can afford because I don’t borrow money. The system only controls you if you let it.
Jason R. in Raleigh is to be congratulated on paying cash, but he's wrong if he the credit score issue doesn't impact him. It's not just credit that is effected; if he has insurance (and I know in NC he must), his rate can very well be impacted by his credit score (or lack thereof). So the financial industry has us all by the short hairs in all kinds of ways many aren't even aware of.
Tess was saying Rico challenged people to how high their credit scores were. His was 795. Mine is 0 and that’s how I want to keep it. I don't need a credit score because I don't borrow money. I don't borrow money because if I don't have the money to buy something then I don't buy it. I would much rather go without than to be a slave to the bank trying keep up with payments so my score doesn’t go down. And when you don't have any payments, you have money. So Rico here is my challenge to you: How much money do you have in your SAVINGS ACCOUNT?
FICO is one of the main contributors to the current Economic Meltdown... Loans were given out - now and then - based on FICO scores....
FICO does not, for example - take into consideration if you have PAID OFF major Real Estate Loans - or have substantial assets.. SO if you have PAID OFF MILLIONS of DOLLARS in REAL ESTATE loans - and own it FREE AND CLEAR - it does NOT AFFECT your FICO scores.. If you have CASH IN THE BANK - again - no postive FICO EFFECT...
So the "CREDIT WORTHY" claim - is a big FARCE in many respects.
Tess was talking today that Rico had challenged people to how high their credit scores were. His was 795. Mine is 840. The car dealer people were floored. A few years back it was 825 so I worked on cleaning up my credit report. Needless to say, I got the car loan and the morgage pre-approval on the spot. I just cancelled a card because they lowered my limit, I never used the card, so now it may go down. Oh well. Tell Rico to keep trying!
