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Old 02-05-2009, 08:43 AM
 
6,584 posts, read 23,685,118 times
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Because consumers can just be going full steam ahead, no problems, no lates, no defaults, nothing and have a great credit score, but then the rules change and these same consumers can get their score lowered - due to no change in the consumer's credit history. The only change is the "needs" of the credit market. The credit market needs everyone to have lower scores so they have excuses to not lend money. So they cancel cards, lower limits, raise interest rates and lower all consumers scores.

So, how much control do we really have over our own FICO scores? We are just pawns.
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Old 02-05-2009, 09:42 AM
 
Location: Londonderry, NH
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We have always been pawns. Lower consumer credit scores mean higher interest rates and greater lender profit. Why shouldn't the rating agencies create thier own numbers.
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Old 02-05-2009, 02:01 PM
 
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Well ;if you want to start lending g money you can make up your own rules as to what the requirements are of the people you loan money to also.
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Old 02-05-2009, 02:17 PM
 
22,769 posts, read 27,832,223 times
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Quote:
Originally Posted by FarNorthDallas View Post
Because consumers can just be going full steam ahead, no problems, no lates, no defaults, nothing and have a great credit score, but then the rules change and these same consumers can get their score lowered - due to no change in the consumer's credit history. The only change is the "needs" of the credit market. The credit market needs everyone to have lower scores so they have excuses to not lend money. So they cancel cards, lower limits, raise interest rates and lower all consumers scores.

So, how much control do we really have over our own FICO scores? We are just pawns.
I don't see what the problem is. FICO was invented by the credit industry, so why should it do anything but serve the credit industry's best interests? What do you think its purpose should be?
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Old 02-05-2009, 02:17 PM
 
Location: In a chartreuse microbus
3,866 posts, read 5,650,468 times
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I think the point the OP was making is that even those who play by the rules get the shaft just like the consumers who don't. In addition, we have no choice in that these few companies have a monopoly on the entire credit scoring system, so we can't just choose another. And if you opt out of using credit, you have a very low credit score. $crewed all the way around.
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Old 02-05-2009, 05:29 PM
 
Location: Great State of Texas
86,068 posts, read 76,905,739 times
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He who owns the money makes the rules.

You want to borrow money ? Then you have no choice but to play by the rules.
Your FICO score didn't use to be that all important. What happened that made your FICO score a total reflection of your life ?

DEBT, pure and simple. Inflation drove values up. FICO scores let people borrow more against these values. The banks were making a killing in the interest.

People felt rich not because their CD's and MM's or stocks were giving them good returns on their money. People felt rich because they could go into debt easily as the bar was lowered to allow HELOCS, lines of credit, unsecured loans and enough credit cards to bulge the wallet.

Credit sounds good but it's really nothing more then debt owed to the bank.
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Old 02-05-2009, 06:25 PM
 
Location: PRC
4,539 posts, read 4,033,500 times
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Quote:
And if you opt out of using credit, you have a very low credit score. $crewed all the way around.
In a world owned by the money-men yes, but a society using cash rather than credit cards is a better, financially healthier economy. We only have to look at the cash-rich countries to see the difference in population debt.

Here in China, you will see people coming out of the bank with bags carrying the money they need to pay for apartments etc. The highest currency note is 100RMB which means that you have to have hundreds of bank notes to pay for anything like this. Often companies will only accept cash or debit cards and people prefer not to pay the credit card charge too.

Unfortunately, it is the way we are conditioned and programmed to behave by the money-owned media and government propaganda machine. Everyone wants us to take out credit to pay for things we want now(rather than need now) and our economies are based on future promises of payment not on actual cash transactions. The more secure financial economies of the world do not have an individual credit-based system and are only just moving towards that very dodgy position.

If we do not like it, then we have the individual and collective power to change it, but we need to realise that all this is happening before we can make it different.
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Old 02-05-2009, 07:24 PM
 
6,584 posts, read 23,685,118 times
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Quote:
Originally Posted by sirron View Post
I think the point the OP was making is that even those who play by the rules get the shaft just like the consumers who don't. In addition, we have no choice in that these few companies have a monopoly on the entire credit scoring system, so we can't just choose another. And if you opt out of using credit, you have a very low credit score. $crewed all the way around.
Yes, Sirron, understands me. Thanks! Your words are much better.
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Old 02-05-2009, 08:50 PM
 
Location: Great State of Texas
86,068 posts, read 76,905,739 times
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Quote:
Originally Posted by ocpaul20 View Post
In a world owned by the money-men yes, but a society using cash rather than credit cards is a better, financially healthier economy. We only have to look at the cash-rich countries to see the difference in population debt.

Here in China, you will see people coming out of the bank with bags carrying the money they need to pay for apartments etc. The highest currency note is 100RMB which means that you have to have hundreds of bank notes to pay for anything like this. Often companies will only accept cash or debit cards and people prefer not to pay the credit card charge too.

Unfortunately, it is the way we are conditioned and programmed to behave by the money-owned media and government propaganda machine. Everyone wants us to take out credit to pay for things we want now(rather than need now) and our economies are based on future promises of payment not on actual cash transactions. The more secure financial economies of the world do not have an individual credit-based system and are only just moving towards that very dodgy position.

If we do not like it, then we have the individual and collective power to change it, but we need to realise that all this is happening before we can make it different.
ocpaul20..I hope you see what credit has done to America. Do not let it work it's way into your economy.
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Old 02-06-2009, 10:13 AM
 
Location: Londonderry, NH
41,478 posts, read 54,331,106 times
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Some credit is useful just like some morphine is useful under the appropriate conditions. When credit is misused it can, like morphine, become addictive. Our country is now going through the withdrawal stage of a credit addiction.

Check the other thread on FICO. If they are manipulating your score for the benefit of their owners do you think they would want to let you check your scores? Why would they want to do that? There is way more profit to be made by the scorekeepers and their clients if they create their own financial credit world. I think this is driven by the rapid reduction of the use of credit as we try to shake off our addiction.
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