Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Moose Jaw, in between the Moose's butt and nose.
5,152 posts, read 8,531,712 times
Reputation: 2038
Advertisements
For many reasons, but here is one that gets me:
You can have excellent credit if your score is between 750 and 850, a 100 point range.
You can have good credit if your score is between 660 and 749, a range of about 90 points.
You can have fair credit if your score is between 620 and 649, a range of only 29 points.
However you have poor and poor is a very strong word, credit if your score is between 350 and 619, almost 270 points!
How do the credit card companies get away with this stuff, along with all the other crap they get away with (like runing credit over unpaid/underpaid medical bills)?
Of course, I can hear the conservatives say, manage your own credit properly and you won't have this problem.
Well, it is not always that easy, again, always, that easy.
How do the credit card companies get away with this stuff
Get away with what? The credit card companies didn't create the system. The system was developed by the Fair Isaac and wasn't created out of thin-air. The number indicates your credit worthiness and your likelihood of default, many real world statistics have been used to develop the algorithm. Also they do not treat a score of 610 the same as 510.
So what do you want, should the credit card companies just hand out money to anybody at low rates? Would you loan money to someone you know is having trouble paying back what they currently owe? But some people screw up, but its usually because bad life planning. Regardless, why do you expect a company to pay for your mistakes?
Unexpected medical bills can affect a debtor's ability to pay back other debts. Of course they should be considered when considering a credit score. It sucks to have medical bills like that (and all the more reason to manage the insurance industry so that more Americans can have health coverage), but from a creditor's stand point they want to know how likely it is that the applicant will be able to pay them back.
For many reasons, but here is one that gets me:
You can have excellent credit if your score is between 750 and 850, a 100 point range.
You can have good credit if your score is between 660 and 749, a range of about 90 points.
You can have fair credit if your score is between 620 and 649, a range of only 29 points.
However you have poor and poor is a very strong word, credit if your score is between 350 and 619, almost 270 points!
How do the credit card companies get away with this stuff, along with all the other crap they get away with (like runing credit over unpaid/underpaid medical bills)?
Of course, I can hear the conservatives say, manage your own credit properly and you won't have this problem.
Well, it is not always that easy, again, always, that easy.
You credit score "range" arguement holds no water.
Location: Moose Jaw, in between the Moose's butt and nose.
5,152 posts, read 8,531,712 times
Reputation: 2038
Quote:
Originally Posted by Humanoid
Get away with what? The credit card companies didn't create the system. The system was developed by the Fair Isaac and wasn't created out of thin-air. The number indicates your credit worthiness and your likelihood of default, many real world statistics have been used to develop the algorithm. Also they do not treat a score of 610 the same as 510.
So what do you want, should the credit card companies just hand out money to anybody at low rates? Would you loan money to someone you know is having trouble paying back what they currently owe? But some people screw up, but its usually because bad life planning. Regardless, why do you expect a company to pay for your mistakes?
Of course I don't expect what you said about handing out money, even though it would be nice. The point I was making is it seems the system is set up to make more people have poor credit than it is to have it the other way around.
The credit scoring system is a scam. It was originally developed by Fair Isiac to assist lenders in making decisions on extending credit. Today it is relied on 100% with no leeway meaning so many loan applications are approved or denied without a human ever looking at it. The stupid FICO computer makes almost all decisions.
Quite some time ago I seem to recall a president, so I must not be talking about bushy, that got a new law into affect where it would be illegal for a creditor to deny credit based on a medical debt. Now we all now that is blatantly ignored. I wish we could get some teeth into this little known law.
There are so many people with perfect credit except for a medical emergency they got into with no insurance and of course was unable to pay the $100,000 per day they spent in the hospital. So their credit is forever ruined by no fault of their own.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,774,755 times
Reputation: 3587
Quote:
Originally Posted by desertsun41
The credit scoring system is a scam. It was originally developed by Fair Isiac to assist lenders in making decisions on extending credit. Today it is relied on 100% with no leeway meaning so many loan applications are approved or denied without a human ever looking at it. The stupid FICO computer makes almost all decisions.
Quite some time ago I seem to recall a president, so I must not be talking about bushy, that got a new law into affect where it would be illegal for a creditor to deny credit based on a medical debt. Now we all now that is blatantly ignored. I wish we could get some teeth into this little known law.
There are so many people with perfect credit except for a medical emergency they got into with no insurance and of course was unable to pay the $100,000 per day they spent in the hospital. So their credit is forever ruined by no fault of their own.
This stinks!
I do not have a problem with the scoring system. It is fair and many companies use it to precisely REMOVE the human factor from it and further distance themselves from charges of discrimination among applicants. It is very simple- you have XXX score, you get YYY terms. I would go even further and require lenders to post their rates for each score publicly so that consumers could comparison shop for credit the way we do cars.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
