Comments on: Quit Obsessing with the Credit Score http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: dawn http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-2544 dawn Thu, 13 Aug 2009 15:14:29 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-2544 Of course, I can't speak to your financial situation, but maybe you pay all your bills on time, never max out your credit cards and have never had a need for a house or car loan. That's great if ignoring your credit score works for you, but unfortunately, there are millions of Americans out there who aren't so conscientious and have leveraged themselves deeply into debt. Credit scores exist because banks needed a quantifiable way to measure the risk that a given borrower will default on a loan. One easy way to determine that risk is to look at how well a borrower has paid off his bills in the past, and that's why 35% of your credit score hinges on just that one factor. It's easy to say credit scores are a joke or a scam, but there is a reason for their existence. In the old days, credit was extended based on a handshake and the banker's personal relationship with the borrower, who could be a neighbor on his street, the local dairy farmer, or whatever. of course, that kind of one on one business dealing would not be possible now. Of course, I can't speak to your financial situation, but maybe you pay all your bills on time, never max out your credit cards and have never had a need for a house or car loan. That's great if ignoring your credit score works for you, but unfortunately, there are millions of Americans out there who aren't so conscientious and have leveraged themselves deeply into debt.

Credit scores exist because banks needed a quantifiable way to measure the risk that a given borrower will default on a loan. One easy way to determine that risk is to look at how well a borrower has paid off his bills in the past, and that's why 35% of your credit score hinges on just that one factor.

It's easy to say credit scores are a joke or a scam, but there is a reason for their existence.

In the old days, credit was extended based on a handshake and the banker's personal relationship with the borrower, who could be a neighbor on his street, the local dairy farmer, or whatever. of course, that kind of one on one business dealing would not be possible now.

]]> By: Adrian Logan http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-2458 Adrian Logan Sat, 18 Jul 2009 04:33:06 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-2458 I think the FICO and Credit Limit reducing without just cause is a scam to make it look like us loyal debt payers are bad credit that the government needs to give the bankers money for. My daughter and I have both worked for these scam artists. Believe us, it is all about the banker doing whatever dishonest thing he can to get more monery. I paid over $13,000 in credit card payments last year and my FICO is 669, thanks to corrupt bankers lowering my credit limit as I pay them off. Bank of America lowered by credit limit to $500.00 immediately after they cashed my $8,000 pay off check. I think the FICO and Credit Limit reducing without just cause is a scam to make it look like us loyal debt payers are bad credit that the government needs to give the bankers money for. My daughter and I have both worked for these scam artists. Believe us, it is all about the banker doing whatever dishonest thing he can to get more monery. I paid over $13,000 in credit card payments last year and my FICO is 669, thanks to corrupt bankers lowering my credit limit as I pay them off. Bank of America lowered by credit limit to $500.00 immediately after they cashed my $8,000 pay off check.

]]> By: SageGriot http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-1946 SageGriot Sun, 26 Apr 2009 01:24:23 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-1946 I wish FICO was just a joke....more like a scam IMO. All that data was literally worthless except among the lenders until FICO comes along, creates a magic number and convinces all consumers to pay them for access....scamalicious. I wish FICO was just a joke….more like a scam IMO. All that data was literally worthless except among the lenders until FICO comes along, creates a magic number and convinces all consumers to pay them for access….scamalicious.

]]> By: Pelon http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-1943 Pelon Thu, 23 Apr 2009 12:59:11 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-1943 Doe anyone else feel like this only became an issue when the rating agencies started to sell credit scoring services to consumers? Your credit score is a reflection of your financial responsibility. Blaming a credit card company for affecting your score by reducing your credit limit is like blaming a police officer for giving you a speeding ticket. Doe anyone else feel like this only became an issue when the rating agencies started to sell credit scoring services to consumers?

Your credit score is a reflection of your financial responsibility. Blaming a credit card company for affecting your score by reducing your credit limit is like blaming a police officer for giving you a speeding ticket.

]]> By: The Weakonomist http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-1940 The Weakonomist Wed, 22 Apr 2009 16:31:27 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-1940 The FICO score is a joke. The guy that did my car loan told me it plays a very small role in decisions anything if your score is over 650. They use it as a starting point, not the final decision. A 10 pt move means jack crap. The FICO score is a joke. The guy that did my car loan told me it plays a very small role in decisions anything if your score is over 650. They use it as a starting point, not the final decision. A 10 pt move means jack crap.

]]> By: Robert http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html/comment-page-1#comment-1939 Robert Wed, 22 Apr 2009 16:13:15 +0000 http://thefinancebuff.com/2009/04/quit-obsessing-with-the-credit-score.html#comment-1939 While I agree with you about not obsessing on it, it is "amusing" to see it change over time - sometime for apparently no real reason. Here's mine over the past year or so: 757 as of 03/11/2009 786 as of 02/10/2009 757 as of 01/14/2009 741 as of 12/11/2008 765 as of 11/08/2008 782 as of 10/07/2008 748 as of 9/11/2008 752 as of 08/08/2008 769 as of 5/17/2008 While I agree with you about not obsessing on it, it is "amusing" to see it change over time – sometime for apparently no real reason. Here's mine over the past year or so:

757 as of 03/11/2009
786 as of 02/10/2009
757 as of 01/14/2009
741 as of 12/11/2008
765 as of 11/08/2008
782 as of 10/07/2008
748 as of 9/11/2008
752 as of 08/08/2008
769 as of 5/17/2008

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