Why should we pay for the FICO score?

[NikPreviousAcct]

Has the OP considered that you're not paying to know the score, you're paying a company to get your score for you? Nobody pays for their FICO score. It's not like you have to pay every year or something to have it. You just... have it. How you get to it is what you're dealing with and almost every single company out there is charging for their services which is basically just relaying information.

 

[VirtualLarry]

Originally posted by: nakedfrog
They're already making money, they're already setting up these FICO scores, based on OUR personal credit histories and they are used to determine interest rates and car insurance rates--it's OUR personal information and we should be able to see it for free.

In various european countries, you own your own information, even if some company has it currently stored in their database, and I believe that you have a right to see it, and make sure that it is correct, at any time.

 

[nakedfrog]

Originally posted by: Queasy

Originally posted by: nakedfrog

Originally posted by: FoBoT
when did everyone start thinking everything was free? was it the late 90's when "Free" internet was invented?
or is it a generational thing? why do the youngsters think things should be free? the company the does all the work for credit history/reporting has to PAY their employees MONEY to work, if they don't charge for the service, how would the company stay in business?

I have to pay a $15 credit report fee as part of my house buying process. I've never worked in a car dealership, but I'll bet they don't get to pull all those credit reports for free. They're already making money, they're already setting up these FICO scores, based on OUR personal credit histories and they are used to determine interest rates and car insurance rates--it's OUR personal information and we should be able to see it for free.

You do get to see your personal credit information for free. What you don't get to see is the FICO score which is not part of your personal information.

It sure is. It's an amalgamation of the factors included in your report, and most likely will be the primary basis for whether you are approved or denied.

 

[StageLeft]

Originally posted by: FrustratedUser

Originally posted by: isasir
Well it's supposed to be free for everyone soon enough.

I really hope so. Paying $30 to $40 to get to know what others think of my finances is frikken stupid.
It's just like car mechanics, we all need them and can usually not choose not to.

Essentially you're saying that you should have their opinion of your finances for free then?

I think we should have free access to credit reports. It's information pertaining to us. It is not an opinion or impression, but actual facts and numbers. FICO, however, is merely an opinion. It takes your factual information and is their opinion of how likely you are to honour a loan.

A quick look at your credit history should be enough, just like in many other countries.

In other countries people aren't slaves to debt in such great numbers :Q

I agree it should be a free service just like the credit reports, It seems kinda sketchy that a company base whether or not they want to do business with you based on a score you can't see freely.

So don't do business with them!

If I date some chick and then call her and say "Hey, not interested. Bye." She has no right to know why. If I don't want to tell her, too bad. These companies are offering to tell you, but you have to pay. Why should you get to know for free?

I think the system is backwards. It should be based on the ratio of how much money you currently make to how much outstanding credit you have. Not based on how much credit you already have.

But the best way to predict a person's likelihood of defaulting on a loan is not just their current income/debt, but also past history. If joe and bob make $60k/year and each owe $30k in crap, but joe's never missed a payment and bob is a deadbeat, I'll give a loan to joe.

They're already making money, they're already setting up these FICO scores, based on OUR personal credit histories and they are used to determine interest rates and car insurance rates--it's OUR personal information and we should be able to see it for free.

Key word BASED. It's BASED on your information. It is NOT your information. Your information _is your credit report_. The FICO score is merely an interpretation and opinion BASED on that information. Again I'd like to know why we should be forcing people to give us their opinion of us for free.

Why do consumers feel like companies have to do something for them? If you are offered a crappy rate it's your job to ask why, and if you don't like it, don't take the loan out.

 

[Queasy]

Originally posted by: nakedfrog
It sure is. It's an amalgamation of the factors included in your report, and most likely will be the primary basis for whether you are approved or denied.

Correct, The score is a calculation of a number of factors in regards to your credit history. But, you're paying Experian, Equifax, TransUnion to calculate and provide that score to you.

 

[RossMAN]

Originally posted by: dullard

Originally posted by: FrustratedUser
I think the system is backwards. It should be based on the ratio of how much money you currently make to how much outstanding credit you have. Not based on how much credit you already have.

Put yourself in the bank's position.

Example 1:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has no proof that he has ever paid anything back to borrowers. He has never borrowed money, he has no financial ties to anything, you pretty much know nothing about the person.

Example 2:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has proof that he has borrowed money for credit cards, car loans, house mortages, etc and always pays back on time. You have years worth of paperwork showing when and how he borrows money and pays off those loans. You can accurately measure that this person was a low risk investment in the past.

Who do you make the loan to?

Example 2, what do I win?

 

[FrustratedUser]

Originally posted by: dullard

Originally posted by: FrustratedUser
I think the system is backwards. It should be based on the ratio of how much money you currently make to how much outstanding credit you have. Not based on how much credit you already have.

Put yourself in the bank's position.

Example 1:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has no proof that he has ever paid anything back to borrowers. He has never borrowed money, he has no financial ties to anything, you pretty much know nothing about the person.

Example 2:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has proof that he has borrowed money for credit cards, car loans, house mortages, etc and always pays back on time. You have years worth of paperwork showing when and how he borrows money and pays off those loans. You can accurately measure that this person was a low risk investment in the past.

Who do you make the loan to?

I would choose the guy in Example 2 IF his CURRENT debt is low enough and I can see he is able to pay it off based on his income/dept ratio.

I would also give the guy in Example 1 a loan. Afterall I can check who he is.

 

[Queasy]

Originally posted by: FrustratedUser

Originally posted by: dullard

Originally posted by: FrustratedUser
I think the system is backwards. It should be based on the ratio of how much money you currently make to how much outstanding credit you have. Not based on how much credit you already have.

Put yourself in the bank's position.

Example 1:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has no proof that he has ever paid anything back to borrowers. He has never borrowed money, he has no financial ties to anything, you pretty much know nothing about the person.

Example 2:
A complete stranger comes to you personally. He makes $60k a year wants to borrow $30k from your bank account to buy a nice new car. He has proof that he has borrowed money for credit cards, car loans, house mortages, etc and always pays back on time. You have years worth of paperwork showing when and how he borrows money and pays off those loans. You can accurately measure that this person was a low risk investment in the past.

Who do you make the loan to?

I would choose the guy in Example 2 IF his CURRENT debt is low enough and I can see he is able to pay it off based on his income/dept ratio.

I would also give the guy in Example 1 a loan. Afterall I can check who he is.

You could give the loan to example 1...but I can guarantee you that, as a loan officer, the interest rate you give to example 1 will be higher than the rate for example 2.

 

[dullard]

Originally posted by: FrustratedUser
I would choose the guy in Example 2 IF his CURRENT debt is low enough and I can see he is able to pay it off based on his income/dept ratio.

That is exactly how the current situation works. If his CURRENT debt is too high, the score plummets and no one will give him a loan. If he is able to pay it off, his score is high and he gets loans.

So what is wrong with the picture again?

Originally posted by: RossMAN
Example 2, what do I win?

You win the comfort of knowing that your knowledge is finally sufficient to take you out of your debt from past mistakes. Or have you paid that off yet?

 

[b0mbrman]

Originally posted by: Skoorb
It's something THEY invented to decide if THEY want to lend you THEIR money. Why SHOULDN'T you pay for it?

Exactly. Credit is a privilege, not a right.

 

[RossMAN]

You win the comfort of knowing that your knowledge is finally sufficient to take you out of your debt from past mistakes. Or have you paid that off yet?

$17k car loan should be paid off by December 31, 2005 about 2.5 years ahead of schedule

 

[FrustratedUser]

Originally posted by: dullard

Originally posted by: FrustratedUser
I would choose the guy in Example 2 IF his CURRENT debt is low enough and I can see he is able to pay it off based on his income/dept ratio.

That is exactly how the current situation works. If his CURRENT debt is too high, the score plummets and no one will give him a loan. If he is able to pay it off, his score is high and he gets loans.

So what is wrong with the picture again?

Originally posted by: RossMAN
Example 2, what do I win?

You win the comfort of knowing that your knowledge is finally sufficient to take you out of your debt from past mistakes. Or have you paid that off yet?

The fact that you are more likely to get even more loans because you already have credit, and that you can't choose to ignore your score because it effects your everyday life anyway (Apartment rental, cell phones, normal phones, cable TV bla bla bla).
If you like to know WHY they didn't lend you money it is not enough to look at your (free) credit report, you need the score to understand.

 

[Rhin0]

The credit report is free, the score is free. I was able to get all 3 scores and credit report at 0 cost to me.

 

[FrustratedUser]

Originally posted by: Rhin0
The credit report is free, the score is free. I was able to get all 3 scores and credit report at 0 cost to me.

From where?

 

[dullard]

Originally posted by: FrustratedUser
If you like to know WHY they didn't lend you money it is not enough to look at your (free) credit report, you need the score to understand.

As you apply for a loan, most places will show you your score if you ask.

 

[FrustratedUser]

Originally posted by: dullard

Originally posted by: FrustratedUser
If you like to know WHY they didn't lend you money it is not enough to look at your (free) credit report, you need the score to understand.

As you apply for a loan, most places will show you your score if you ask.

Yeah, I know. Not a very good argument I know.

 

[dullard]

Originally posted by: FrustratedUser
Yeah, I know. Not a very good argument I know.

If you are denied, then you have the right (federal law) to know exactly why you were rejected and their answer cannot be vague (by law). For example, they will say, you must raise your income by $XXX or you have to pay down your debt by $YYY.

 

[Rhin0]

Originally posted by: FrustratedUser

Originally posted by: Rhin0
The credit report is free, the score is free. I was able to get all 3 scores and credit report at 0 cost to me.

From where?

Use yahoo or google. When I applied for my first credit card (Citi) and wanted to check my scores it took me literally 2 mins to find several offers. I already had an Equifax check from my local bank from my Jetski and computer loan and I was able to find offers to check Transunion and Experian for free. The Experian score is a lot like the Equifax but Transunion "grades" a lot harder (100 point difference in scores). Also now there is a law or something where you can check for free of charge once a year (at least in Ohio)


This is a great website this and creditboards.com are very good info.

http://www.cardratings.com/

http://www.cardratings.com/crinfofr.html

 

[archcommus]

Should I fill out the thing for a free 30-day trial at CreditExpert then?

 

[Queasy]

Originally posted by: archcommus
Should I fill out the thing for a free 30-day trial at CreditExpert then?

I'd be careful. These type of places may give you a 'free' trial but they will charge you out the ying yang if you let the trial expire.

 

[archcommus]

That's why I haven't done it yet. But I'm intrigued by Rhin0's claims.

 

[archcommus]

So...the free stuff...continue discussion?

 

[Rhin0]

It is free dude... Just cancel the thing before 30 days is up.

It has been over 3 months since my thing ended and there are no charges from them