Feb. 2, 2009


Comments

 
 
 
  • It seems like the second and fourth changes are dangerous together. If they system looks unfavorably upon those with a limited credit history, and forgives those with one major setback, then it seems as if those beginning to build credit are encouraged to take unnecessary risks. Imagine a college student: he stays current on his one credit card. That's not doing much for his credit, especially with the new changes. So he chances buying a car, realizes that can't afford the monthly payments, and gets the car repossessed. While there may be damage to the student's credit score, there are still clear incentives toward financial risk taking.
    Anonymous
     
     
     
  • #3 is critical. A $5 charge on a card that I didn't even know I had cost me 40 points on my credit score. Turns out the company had my wrong address.
    Anonymous
     
     
     
  • excellent summary. Is there data that would show how these changes affect the distribution of scores?
    Anonymous
     
     
     
  • Changes to the FICO formula will make no difference until lenders quit relying on the number!!! Keeping one’s balances low, paying on time, not opening new debts leads to a great score. But, even with a 770 FICO, making a $500,000 mortgage loan for a person who makes $4500 per month. And, I still have a philosophical problem with allowing authorized user accounts count in one’s FICO. Taking it away would negatively affect people? Isn’t that the point? Giving my son or daughter my 10 years of credit does not indicate that he or she is a good credit risk. If that’s the case, then the authorized user needs to get up, pay a higher rate until he can prove he is a good risk, and then apply for a lower rate or a new card. Why do we not accept personal responsibility? If you have no credit, you pay a higher amount. I don’t get it.
    Anonymous
     
     
     
  • What is conspicuously absent from all of this is the status of Fair Isaac's relationship with Experion, which now severed--leaves lenders in a bind and consumers with an even greater sense of dismay and quite possibly disdain.
    Frank McBride
     
     
     
 
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