Do you have adblock enabled?
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Chicago Trib)   New FICO formula to help millions of Americans improve their credit scores. Apparently, it gives a pass on the first three home foreclosures   (chicagotribune.com) divider line 63
    More: Interesting, credit rating, FICO, medical debts, credit history, credit bureaus, bad debts, John Ulzheimer, debt settlement  
•       •       •

1680 clicks; posted to Business » on 11 Aug 2014 at 12:37 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



63 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

Archived thread

First | « | 1 | 2 | » | Last | Show all
 
2014-08-11 09:47:25 AM  
i.ytimg.com
"But the fourth one...stayed up!"
 
2014-08-11 09:51:26 AM  
Yeah, because giving anyone with a pulse credit worked out so well before.
 
2014-08-11 12:09:31 PM  
It's "Everyone Gets a Trophy", credit score style.
 
2014-08-11 12:43:13 PM  
Those risky financial products aren't going to create themselves.
 
2014-08-11 12:43:19 PM  
And here I am, paying off my bills as I should and working to keep a good credit score for whenever the future Mrs. 1000legs and i get a house.
 
2014-08-11 12:44:48 PM  
My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.
 
2014-08-11 12:46:00 PM  

Tormented by debt collectors? Fight back
by Gregory Karp


This was a worthwhile article.

[ ] Yarp

[ ] Narp
 
2014-08-11 12:55:54 PM  

skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.


This. Anyone with that much influence over your finances needs to be completely transparent and subject to intense scrutiny and accountability to regulators.
Personally, I'd just as soon see them disappear completely.


/former mortgage loan officer
//former because I couldn't deal with how corrupt the real estate industry is at every level
 
2014-08-11 12:56:42 PM  
If the new formula proves to be an inaccurate way to assess risk, I'd expect no one will use it. If the prospective borrowers who'd have decent scores but for those two criteria they're thinking of loosening up prove to be relatively safe bets, then lenders suddenly have a larger market and they'll adopt this.

I am not a finance guy but with US$billions at stake I gotta believe they take considerable care validating these things. Also per tfa "it could be years before lenders adopt the new scoring system".

I'm not gonna panic over this, or even bother shaking my head.
 
2014-08-11 01:02:17 PM  
Banker 1:  Fark us!  People aren't getting as many loans anymore since we farked them over with the housing crisis, and we've blown most of that on hookers and blow.

Banker 2: Let's loosen the standards on medical debt, since the reason for the debt is probably dead anyways.

Banker 1: Brilliant!
 
2014-08-11 01:06:30 PM  

skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.


CSB:

When applying for a mortgage my credit score took a hit on the final credit check before going to closing. I had to kick in an extra thousand bucks or so on "points" to avoid the interest rate going up.

The reason for the credit score hit? Too many inquiries.

The only entity to make inquiries? The mortgage lender.

Wait... that's not a cool story... that blows...
 
2014-08-11 01:08:23 PM  

skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.


Hah, yeah, shifting it to an even larger bureaucracy will sure fix it. *eyeroll*
 
2014-08-11 01:13:34 PM  
Good, now remove student loans from it as well.

Actually, can the next riot take place at the credit bureaus? Demolish them, not convenience stores.
 
2014-08-11 01:15:07 PM  

Target Builder: The reason for the credit score hit? Too many inquiries.

The only entity to make inquiries? The mortgage lender.


Yep. My buddy who is a licensed real estate agent tells people to expect their credit score to drop 25-50 points when even looking to get a mortgage, since even looking for credit lowers your ability to get good credit.

It's a farked up system.
 
2014-08-11 01:31:58 PM  

Target Builder: skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.

CSB:

When applying for a mortgage my credit score took a hit on the final credit check before going to closing. I had to kick in an extra thousand bucks or so on "points" to avoid the interest rate going up.

The reason for the credit score hit? Too many inquiries.

The only entity to make inquiries? The mortgage lender.

Wait... that's not a cool story... that blows...


Here's mine.

Bought the house as a FSBO from the realtor.  She was confused on how to do that slightly, but all in all, it worked out.  It was also an FHA loan that we did as a loan assumption, so we only owed about $3K to the sellers rather than the typical FHA percentages.  They paid for a lot of things they didn't have to, and we got a nice house close to work and groceries.  It really is amazing.

Fast forward, Chase buys my loan.....

For the past three months, they have been sending me "FHA streamlined refi" letters via express mail, but I'll have PMI for the life of the loan now unless they've told me wrong.
 
2014-08-11 01:36:25 PM  

skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.


Mine fell a full hundred points in a week or two BECAUSE I CLEARED UP BAD DEBT. Paying my debts totally farked me. I had a better score not paying things off. How bullshiat is that?

This part of TFA is important:

The formula for calculating the most widely used credit scores will soon change to lessen the impact of bad medical debts and ignore old unpaid debts of any type that are later paid off.

RoxtarRyan: Target Builder: The reason for the credit score hit? Too many inquiries.

The only entity to make inquiries? The mortgage lender.

Yep. My buddy who is a licensed real estate agent tells people to expect their credit score to drop 25-50 points when even looking to get a mortgage, since even looking for credit lowers your ability to get good credit.

It's a farked up system.


No, you should be safe if you don't do a bunch of checks, as far as I know. 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.
 
2014-08-11 01:38:06 PM  

RoxtarRyan: Target Builder: The reason for the credit score hit? Too many inquiries.

The only entity to make inquiries? The mortgage lender.

Yep. My buddy who is a licensed real estate agent tells people to expect their credit score to drop 25-50 points when even looking to get a mortgage, since even looking for credit lowers your ability to get good credit.

It's a farked up system.


The fact that we, as Americans, are beholden to a broken and dark system such as this is absolutely reprehensible. fark them all.
 
2014-08-11 01:39:05 PM  
loveblondieo: Good, now remove student loans from it as well.

Actually, can the next riot take place at the credit bureaus? Demolish them, not convenience stores.


Hell no... Student loans have low payments and they do wonders for your credit. When I was current on mine(before I lost my job and got tight on money), my score was consistently rising just from paying off the loans. Besides, they also aren't considered against your debt to income ratio. It's a biatch to get back on track if you get behind like I did, buyt they are always willing to work with you. Hell, it's the only real credit I even have at the moment.
 
2014-08-11 01:45:33 PM  

Mikey1969: 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.


If you're going to get a mortgage, you're going to go to more than 1 lender and apply. You're going to want to ask a few companies to get the best rates.
 
2014-08-11 01:47:54 PM  

Fark you, FICO!

Those of us who suffered through the recession, through the unemployment, who sacrificed so much for years to honor our debts, are going to get nothing, while easily-led assholes who made poor decisions, led by assholes who capitalized on it, are going to get improved FICO scores solely because it's time to fleece those easily-led assholes again by making it easier for them to get credit from the same damned assholes who capitalized on them in the past?

Fark you. I'm tired of having to fund this circus.
 
2014-08-11 01:50:51 PM  

skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.


30 points is what I got nicked for when the mortgage escrow payment went up but I forgot to adjust the auto pay.  $10 short and they dinged me for 30 days late and a late fee.  Was still at 790 after the ding so it was meaningless as far as new credit goes.
 
2014-08-11 01:53:19 PM  
Is this where I come in to say that I'm a Farker with a 810 credit score and a Visa card that I put $10,000 on every month but pay it off to get airline points so I can go to Vegas for free and spend it on hookers and blow?
 
2014-08-11 01:53:41 PM  

RoxtarRyan: Mikey1969: 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.

If you're going to get a mortgage, you're going to go to more than 1 lender and apply. You're going to want to ask a few companies to get the best rates.


And that's why you do it as seldom as possible. Minimize the number of times. You find one mortgage guy, you don't go all over town and have everybody and their dog running it redundantly. You also find someone who knows what they are doing who doesn't send it to lenders who either won't lend, or look for people with worse credit than you  and charge more as a result.
 
2014-08-11 01:56:36 PM  

FormlessOne: Fark you, FICO!Those of us who suffered through the recession, through the unemployment, who sacrificed so much for years to honor our debts, are going to get nothing, while easily-led assholes who made poor decisions, led by assholes who capitalized on it, are going to get improved FICO scores solely because it's time to fleece those easily-led assholes again by making it easier for them to get credit from the same damned assholes who capitalized on them in the past?

Fark you. I'm tired of having to fund this circus.


The very first paragraph reads: "The formula for calculating the most widely used credit scores will soon change to lessen the impact of bad medical debts and ignore old unpaid debts of any type that are later paid off. "

I'm not going to get stressed out by that.  If your credit is otherwise good, but you ended up hospitalized for a week with food poisoning with a $20,000 out of pocket expense I don't see that as an issue.

Similarly if you have an old debt that you ignored but later did in fact pay in full, that again seems to be an OK thing.  Those will still probably haunt you for a couple of years after they're paid off.
 
2014-08-11 01:58:53 PM  

SurfaceTension: It's "Everyone Gets a Trophy", credit score style.



I am starting to hear commercials on the radio in Charlotte advertising $0 home loans. What could possib-ly go wrong.
 
2014-08-11 01:59:44 PM  
You guys thinking this is dumb are dumb. The old score actually encourages you not to pay off old debt in collection. If you pay it off now (or pay anything) it resets the 7 year countdown. So if you can afford to pay it off 4 years you probably don't want to or it will stay on your credit report lowering your credit score.
 
2014-08-11 02:00:31 PM  
*$0 Down
 
2014-08-11 02:17:40 PM  

TRUBored: SurfaceTension: It's "Everyone Gets a Trophy", credit score style.


I am starting to hear commercials on the radio in Charlotte advertising $0 home loans. What could possib-ly go wrong.


"I'll loan you ZERO! That's right ZERO dollars to buy a new house! Just pay our closing fee and get no money to buy that dream home! The best part of this deal is you never have to pay anything back! So get those fingers dialing now!"

TRUBored: *$0 Down


Oh. :)
 
2014-08-11 02:36:08 PM  

Catsaregreen: Is this where I come in to say that I'm a Farker with a 810 credit score and a Visa card that I put $10,000 on every month but pay it off to get airline points so I can go to Vegas for free and spend it on hookers and blow?


Don't forget the part about retiring at age 35.
 
2014-08-11 03:01:57 PM  

bbqsandwich: Catsaregreen: Is this where I come in to say that I'm a Farker with a 810 credit score and a Visa card that I put $10,000 on every month but pay it off to get airline points so I can go to Vegas for free and spend it on hookers and blow?

Don't forget the part about retiring at age 35.


No time for that part. He has to be at the gym in 26 minutes.
 
2014-08-11 03:08:06 PM  
This is only a first baby step toward reducing inequality in America. Next is granting everyone an Ivy League degree.
 
2014-08-11 03:33:07 PM  
I had a better headline last week.

The FICO score will now better assess credit risk by ignoring the largest cause of bankruptcy
 
2014-08-11 03:38:05 PM  

Mikey1969: RoxtarRyan: Mikey1969: 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.

If you're going to get a mortgage, you're going to go to more than 1 lender and apply. You're going to want to ask a few companies to get the best rates.

And that's why you do it as seldom as possible. Minimize the number of times. You find one mortgage guy, you don't go all over town and have everybody and their dog running it redundantly. You also find someone who knows what they are doing who doesn't send it to lenders who either won't lend, or look for people with worse credit than you  and charge more as a result.


As long as they are within 90 days (or something like that) there's no difference between 1 inquiry and 100.
 
2014-08-11 03:40:57 PM  

Mikey1969: RoxtarRyan: Mikey1969: 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.

If you're going to get a mortgage, you're going to go to more than 1 lender and apply. You're going to want to ask a few companies to get the best rates.

And that's why you do it as seldom as possible. Minimize the number of times. You find one mortgage guy, you don't go all over town and have everybody and their dog running it redundantly. You also find someone who knows what they are doing who doesn't send it to lenders who either won't lend, or look for people with worse credit than you  and charge more as a result.


Or,

FIX THE GODDAMN SYSTEM SO IT DOESN'T FARK SHIAT UP WHEN YOU MAKE INQUIRIES


(not yelling at you, just frustration over the whole goddamn rigged farking system)
 
2014-08-11 04:06:33 PM  

El Dudereno: skozlaw: My FICO score fell thirty points last month for no apparent reason.

My credit is good, but I still think the whole scoring system - and the agencies in general - are a ridiculous scam in their current form and ought to be a lot more heavily regulated.

This. Anyone with that much influence over your finances needs to be completely transparent and subject to intense scrutiny and accountability to regulators.
Personally, I'd just as soon see them disappear completely.


/former mortgage loan officer
//former because I couldn't deal with how corrupt the real estate industry is at every level


I've been offered loans that I could never afford.  I've seen adds in the paper advertising loans with no credit check. It's a bunch of guys in suits, and hot women trying to sucker you into something that you can't afford.  That's the way it went down in the 2000's.  The only way you were going to pay that loan is to be a player, distributing drugs, running whores, or making it big time like Brittney Spears.

Well, good luck if you take a loan like that.  In fact, you should ask for an extra $200,000 so that you can complete the lifestyle.
 
2014-08-11 04:19:29 PM  

RoxtarRyan: Mikey1969: RoxtarRyan: Mikey1969: 1 run of the credit every once in awhile isn't supposed to impact you. It's when those mortgage guys run it against every lender they can think of.

If you're going to get a mortgage, you're going to go to more than 1 lender and apply. You're going to want to ask a few companies to get the best rates.

And that's why you do it as seldom as possible. Minimize the number of times. You find one mortgage guy, you don't go all over town and have everybody and their dog running it redundantly. You also find someone who knows what they are doing who doesn't send it to lenders who either won't lend, or look for people with worse credit than you  and charge more as a result.

Or,FIX THE GODDAMN SYSTEM SO IT DOESN'T FARK SHIAT UP WHEN YOU MAKE INQUIRIES
(not yelling at you, just frustration over the whole goddamn rigged farking system)


I wholeheartedly agree... There are all kinds of problems I ran into. As I mentioned in another post, paying off my old debts resulted in a worse credit score, nobody could ever tell us for sure what would work and what wouldn't because it's some kind of proprietary bullshiat, the aforementioned ding to your credit just for applying for credit, and the face that one small thing can kill your credit, but you have to do a billion big things to fix it.

And those are just a few. Oh, and they need a Truth In Advertising thing out there. all of those credit scores that people promise to keep you notified of? It's not your FICO score, so people are wasting their farking money, since it doesn't mean shiat.

Good thing I don't mind old cars. A car loan every 10 years or so for my wife, and finally getting a goddamn house are going to be stressful enough.
 
2014-08-11 04:40:32 PM  

Mikey1969: And those are just a few. Oh, and they need a Truth In Advertising thing out there. all of those credit scores that people promise to keep you notified of? It's not your FICO score, so people are wasting their farking money, since it doesn't mean shiat.


Get a Discover card and they'll put your FICO in your statement every month.
 
2014-08-11 04:52:42 PM  

BMFPitt: Mikey1969: And those are just a few. Oh, and they need a Truth In Advertising thing out there. all of those credit scores that people promise to keep you notified of? It's not your FICO score, so people are wasting their farking money, since it doesn't mean shiat.

Get a Discover card and they'll put your FICO in your statement every month.


I'd like to. They seem like the best option(Once I have my credit rebuilt). I like the included FICO, didn't know about that.
 
2014-08-11 05:21:10 PM  

Englebert Slaptyback: Tormented by debt collectors? Fight back
by Gregory Karp


This was a worthwhile article.

[ ] Yarp

[ ] Narp


And I thought my son and I were the only ones who use "Yarp" and "Narp".

Not that I feel a sense of closure or anything, but I might sleep better tonight.
 
2014-08-11 05:24:55 PM  

Mikey1969: Mine fell a full hundred points in a week or two BECAUSE I CLEARED UP BAD DEBT. Paying my debts totally farked me.


Turns out you're better off just not paying old bad debts. Paying them costs you money and farks your score.There's some small mental benefit from not being a deadbeat, but you still won't be able to walk straight from the ass-ramming they give to you.
 
2014-08-11 05:25:42 PM  

fastfxr


And I thought my son and I were the only ones who use "Yarp" and "Narp".

Not that I feel a sense of closure or anything, but I might sleep better tonight.


Well, the last name of the guy who wrote TFA is Karp. When I saw that it reminded me of yarp/narp.
 
2014-08-11 05:33:25 PM  

thurstonxhowell: Mikey1969: Mine fell a full hundred points in a week or two BECAUSE I CLEARED UP BAD DEBT. Paying my debts totally farked me.

Turns out you're better off just not paying old bad debts. Paying them costs you money and farks your score.There's some small mental benefit from not being a deadbeat, but you still won't be able to walk straight from the ass-ramming they give to you.


That was actually the advice freom the mortgage guy I talked to after I had that happen. I was totally blown away by that particular revelation.
 
2014-08-11 05:39:55 PM  
There's always this for you FICO losers:

consumermediallc.files.wordpress.com
 
2014-08-11 06:13:48 PM  

Beeblebrox: There's always this for you FICO losers:


They got shutdown.
 
2014-08-11 06:17:57 PM  

Mikey1969: thurstonxhowell: Mikey1969: Mine fell a full hundred points in a week or two BECAUSE I CLEARED UP BAD DEBT. Paying my debts totally farked me.

Turns out you're better off just not paying old bad debts. Paying them costs you money and farks your score.There's some small mental benefit from not being a deadbeat, but you still won't be able to walk straight from the ass-ramming they give to you.

That was actually the advice freom the mortgage guy I talked to after I had that happen. I was totally blown away by that particular revelation.


It makes it stick around longer too since it resets the 7 year counter.

This change is actually good. Encourages you not to be a deadbeat and allows you to establish you eventually pay up.
 
2014-08-11 06:19:09 PM  

Intrepid00: Beeblebrox: There's always this for you FICO losers:

They got shutdown.


Damnit!  I loved those commercials!
 
2014-08-11 06:32:23 PM  

BMFPitt: Mikey1969: And those are just a few. Oh, and they need a Truth In Advertising thing out there. all of those credit scores that people promise to keep you notified of? It's not your FICO score, so people are wasting their farking money, since it doesn't mean shiat.

Get a Discover card and they'll put your FICO in your statement every month.


Capital One gives you a credit tracker that will not fark it and even lets you do what ifs before you go and add or remove accounts.
 
2014-08-11 06:33:51 PM  

Mikey1969: loveblondieo: Good, now remove student loans from it as well.

Actually, can the next riot take place at the credit bureaus? Demolish them, not convenience stores.

Hell no... Student loans have low payments and they do wonders for your credit. When I was current on mine(before I lost my job and got tight on money), my score was consistently rising just from paying off the loans. Besides, they also aren't considered against your debt to income ratio. It's a biatch to get back on track if you get behind like I did, buyt they are always willing to work with you. Hell, it's the only real credit I even have at the moment.


What? Yes, student debts are considered a part of the ratio. That's why, when I was starting in grad school, I had no problem buying a house. But when I graduated, and the loan kicked in, I had trouble refinancing for a LOWER payment with the SAME lending company, because I was a default risk. Think about it.
 
2014-08-11 07:09:23 PM  

jake_lex: Yeah, because giving anyone with a pulse credit worked out so well before.


Not FICO's fault.  Those giving credit were IGNORING the bad FICO scores.  Fannie had NO MINIMUM credit score for acceptance to purchase mortgages.
 
2014-08-11 07:18:24 PM  

SurfaceTension: TRUBored: SurfaceTension: It's "Everyone Gets a Trophy", credit score style.


I am starting to hear commercials on the radio in Charlotte advertising $0 home loans. What could possib-ly go wrong.

"I'll loan you ZERO! That's right ZERO dollars to buy a new house! Just pay our closing fee and get no money to buy that dream home! The best part of this deal is you never have to pay anything back! So get those fingers dialing now!"

TRUBored: *$0 Down

Oh. :)


I dropped Wells Fargo after 25 years of banking.  First checking account I had.  A subssidiary Wells bought up.  I had numerous accounts there.  They tried to put a monthly fee on my checking account.  HOWEVER I did not move my mortgage.  Wells Fargo is probably the bank that is best at mortgages (commercial student loans too).  They hold all their own debt and don't sell it off.  That gives them power...good and bad I suppose.  Twice in my case it saved me thousands.  When interest rates dropped and I went to refinance they basically said 'hmmm, since we already own this debt and have all the paperwork and hmmm that asset is the same risk either way, we won't even bother doing appraisals and such.  here's your new mortgage without all that b.s. fees'.  BOOM!!! New mortgage, no closing costs, 2 whole points lower interest.  Did it twice in fact over the years on 2 different houses.  each time refi from 30 down to 15 and kept basically the same payment.  Saved me thousands and thousands of dollars.

The only reason they can do that is they hold the debt already.  There's exactly the same asset and consumer risk whether they hold mortgage A or momrtgage B.  No need to reappraise because why does it matter?
 
Displayed 50 of 63 comments

First | « | 1 | 2 | » | Last | Show all

View Voting Results: Smartest and Funniest


This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »
Advertisement
On Twitter






In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report