Fico Credit Scores

SeaMaiden · ‎03-10-2010

Do you feel comfortable sharing yours? Discover Card is now giving your FICO score with every statement which makes it easy to keep an eye on it. Mine is 850. I have several CC that I pay off in full each month. Other than that one car payment and my Mortgage payment.

Most people do not know that their home and car insurance rates as well as borrowing rates from the bank reflects their FICO score and if you have a low one you will pay much more.... not very fair, but legal.

millieshops · ‎03-09-2010

@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans?

software · ‎06-08-2016

The FICO score doesn't tell the whole picture of your credit worthiness

ANd it's just a tool to keep poor people poor.

Higher insurance? What's that got to do with your credit worthiness? You pay your insurance bill every month, you get your insurance. Should be unrelated. You don't buy car insurance on CREDIT.

If you choose to have no debt, then you have ZERO for a score. It's a tool to promote debt.

@millieshops wrote:
@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans?

CAcableGirl2 · ‎06-03-2010

You can get a free credit score from credit karma updated every 7 days for free. The score that the banks provide are somewhat different (varies 10-20 points) and usually runs higher than others who provide a score. One of the best things you can teach your children is about how credit works and get them interested in maintaining a high score which will benefit them overall in the future. If they have zero credit or are just out of high school, see if your local bank or credit union will give them a secured credit card, it will allow them to start building credit early.

......You look like I need a drink.....

libbyannE · ‎10-27-2010

It IS fair for people who have demonstrated that they are higher risks to pay more. I had a friend who was in actuarial science, and I learned that those with credit issues often are higher risks, in general. Thus, even their insurance costs are higher. Unfortunately, one reason credit card interest rates are high is that banks charge ALL of us for those who renege on their obligations and never pay or who declare bankruptcy and pay only cents on the dollar if what they actually owe. Is THAT fair to those of us who handle our obligations as promised and have the high credit scores to prove it?

SeaMaiden · ‎03-10-2010

@millieshops wrote:
@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans?

@millieshops I guess I was a bit miffed at the car insurance rates being tied to the FICO Score....I think that is not a rational reasoning to say that if someone with a low credit score drives less defensively than someone with a high FICO score. It just makes car insurance harder for someone to afford car insurance with a low score. I can see why banks charge more to loan money. That only makes sense. Sorry I was not very clear in my answer.

LilacTree · ‎03-25-2012

One could have 20 credit cards and if they don't use them, they will have no FICO score.

Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986

libbyannE · ‎10-27-2010

@software wrote:
The FICO score doesn't tell the whole picture of your credit worthiness

ANd it's just a tool to keep poor people poor.

Higher insurance? What's that got to do with your credit worthiness? You pay your insurance bill every month, you get your insurance. Should be unrelated. You don't buy car insurance on CREDIT.

If you choose to have no debt, then you have ZERO for a score. It's a tool to promote debt.

@millieshops wrote:
@SeaMaidenWhy do you think it's not fair that people who are poor credit risks pay bigger interests to lenders willing to risk their money to give them loans?

Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher. Also, if slow- or no-payers miss insurance payments, that is costly for insurance companies who have to pay people to go after those poor payers. That should be obvious. If you have poor credit, you are COSTING other people money and even increasing credit card interest rates for all of us.

software · ‎06-08-2016

Actuarial science shows that people with credit issues often have other risky behaviors that make them higher risks, in general, so their insurance rates can be higher.

While this may be a "fact" it's selective and again an excuse to punish poor people.