doctorpcar

Actually it is a fairly accurate system. You misunderstand the purpose of FICO. FICO does not take into account how much money you make, because how much money you make has NO proven baring on how likely you are to pay back debt and how likely you are to pay it back consistently on time.

The proof is all the rich entertainers and athletes who come into lots of money and go bankrupts. FICO tells lenders how likely you are to responsibly pay a loan, and having millions in earnings per year with no credit history tells them zero.

FICO is not perfect, it is a tool. The score alone is not really used to make a decision, at least in most cases. Underwriters usually look at the score and your other variables, such as employment history, income, years at current address, etc. These variables are more interesting for bigger loans like houses, but without getting into the nitty gritty of it, FICO is a pretty good system for what it is. Like any tool it can be misused.

Likemystoppie?

No Dr. With all due respect I DO understand- The finer points in my post were missed: I was quoting facts that I found in his credit. The fact he makes what he makes isn't relevant to my point. That point was directed at the comment Dave made about 'Pre Qualifying' a potential client.

Interestingly enough, the person who has less then a 700 FICO and cash down, is a MORE motivated buyer then one who pays cash for everything. They buy stuff much more often then the cash buyer. Case in point- the average compiled debt by the average American.


And I agree; it is a tool, and it can be abused. But that's not an excuse to work to make it a better SYSTEM.

Question: Have you ever been upset w/ the Bureau's mis-reporting? Or some sort of wrongly attached negetive trade line attached to your SSN and it drastically effected your credit rating?

More over: Have you EVER attempted to fix what was wrong?

doctorpcar

LikeMy.. yeah I see what you're saying about figuring out whether someone is a motivated buyer. As to whether they are likely to pay back the loan, FICO is the only consistently acurate tool, albeit not perfect.

I agree with your other points.

911Dave

I know mine. I get it every year, along with a free report from each agency. I've been studying information on FICO scores and credit reports for over 20 years.

911Dave

It's spelled bureaus.

Go back and read my post again. I never said they were accurate. I said they were meaningless unless they give a reasonably accurate picture. Whether they are accurate or not is a completely different matter. Your reading comprehension seems to be even worse than your spelling.

mitch236

You proved a point. Let me tell you what I gleaned from your assessment of your customer. FICO score is a reflection of how well you handled credit over a period of time. Since your customer uses credit sparingly his FICO score will reflect someone with very limited credit history. His score indicated that there isn't enough history to determine whether he will continue to pay on time so hence, the poor score. He should remedy this as the score is used for so many things that it is almost imperitive to have a good score to get the best rates on many non credit items.

How do you know how much he makes a year? I can tell you that only my accountant, wife and business partner have any knowlege on that front. The fact that you know what he makes a year means to me that you needed some financial information to make a decision about his ability to buy the car.

I hate the credit reporting agencies. Yes, I've had to jump through the hoops to correct issues with my report and that's why I'm such an advocate for everyone else to be very protective about their credit.

Likemystoppie?

Dave- no REAL need to get nasty here. You seem hell bent on correcting me; while you're at it why don't you make my bed and do my laundry. Also, my shirts weren't properly pressed, or is that dry cleaned? In any event you can go take care of that for me as well. I'm sure you'll make a fantastic wife. Or, robot.

Cheers to you.


If on the other hand you want to stop being a D-bag and correcting me, which obviously is warranted, but could have been done in another manner- and want to start spilling the beans of 'said knowledge of the FICO' system, then by all means. Start acting like the intelligent person we all think you might be.


So, besides your self proclaimed '20 years' of studying the system, where's your data to support your views?

Let's HEAR it...

Likemystoppie?

Yeah, I feel the same sentiment regarding the agencies.

Okay, so I'll fill in the blanks. He brought in his financials, for what ever reason. I have seen this before, although admittedly it's rare. He had MANY years of great credit. Going way way back. Full trade lines, full of past AND present activity. Not ONE single late. He held multiple mortgages over the years, and all paid on time and in full.

Honestly, he got instantly approved at Tier 2, and with one phone call to the analyst he was approved MB Tier 1. No real reason to have a Tier 2, just an automatic response.

Although the system does have credibility; it's deeply flawed. And I'm fully aware of the NEED of such a system. Actually, it's a necessity. But there's much room to be improved.


And his FICO: 678

mitch236

I don't get it. There is something very wrong on his credit file. If all you say is the whole truth about his past financial history, his FICO would be much higher. He needs to pull his file and analyze it. Two years ago I found an erronious lien on my report. I had to have a lawyer help me with that one because it was a tax lien (it was found to belong to another individual with a very similar name). I took a hit of over 100 points off my FICO for that.

BTW, someone should write a book about the system. I would buy that in a heartbeat!

Likemystoppie?

I know man. I don't get it either. I actually did say something to him about it. He actually said he didn't care that much. I was like "I wish I didn't have to care so much!" LOL

I'm with you Mitch- if someone did write a book about the system, I'd be right behind you in line to buy one!