Credit scores are unfair

[tslasia]

Does anyone agree with me here that these points taken away from your credit report each time someone looks into your credit report are sometimes unfair.

For example, you aply for refinancing to help lower your mortgage payments like most sane people do these days. Did you know that when the bank pulls your credit report from idiots like Equafax and TRW, they lower you score! Yes, you get your score lowered just because someone looks into your history! You did not even do anything that would make you a bad risk, and you get punished for future attempts at obtaining a loan. Now I can see if you missed a payment or two or become delinquent on your accounts, but what is wrong with checking into your report?

Anyone agree or want to comment on why bastards like these can do this without someone comming down on them?

[PigDogg]

*Fair* Issac is a misnomer.

I agree completely that it's unfair that consumers are somewhat inhibited from shopping around for the best rates due to the fear of hurting their credit rating due to too many inquiries.

Although youu can get free copies of your Equifax, TransUnion and TRW credit histories, I don't believe you can get a free copy of your FICO (Fair Issac) score.

[Guest]

errr... I know this is fish box but still, should our topics have at least a bit of something to do with lb or los ? This sounds like a topic on richdad.com - which is also one of my all time favorite.

[dummy_plug]

errr... I know this is fish box but still, should our topics have at least a bit of something to do with lb or los ? This sounds like a topic on richdad.com - which is also one of my all time favorite.

The Fish Box is our all-purpose forum for anything from A-Z. I wish the forum was all ladyboys, all the time, but apparently people have other things on their minds.

[dummy_plug]

Does anyone agree with me here that these points taken away from your credit report each time someone looks into your credit report are sometimes unfair.

For example, you aply for refinancing to help lower your mortgage payments like most sane people do these days.  Did you know that when the bank pulls your credit report from idiots like Equafax and TRW, they lower you score!  Yes, you get your score lowered just because someone looks into your history!  You did not even do anything that would make you a bad risk, and you get punished for future attempts at obtaining a loan.  Now I can see if you missed a payment or two or become delinquent on your accounts, but what is wrong with checking into your report?

Anyone agree or want to comment on why bastards like these can do this without someone comming down on them?

It seems unfair, but the basic premise is this: When you apply for a loan, line of credit, credit card, etc... it seems to indicate (at least to the creditors) that you plan to go into debt relatively soon. Now, the reason why points are docked every time someone looks at your credit report is actually quite intuitive. I might add that for infrequent checks, the impact is VERY minor and would likely have no significant impact on your ability to get credit. If you are granted credit on your first try, usually the case, then end of story. However, there are people that are denied credit and continually apply for credit until someone, a high-risk lender, gives them a loan. Thus by tracking the amount of times someone requests credit, it gives the lender a better picture about the borrower. Trust me, as a bank you'd be very interested to know that your potential borrower has been turned down 5-6 times (not uncommon!).

[limpdick]

I dont care about credit reports or credit, if I want something I just save up and buy it. I like to get the interest instead of pay it, in US everyone makes it so easy just to buy now and pay later, basicall the downfall of America.

[dummy_plug]

Credit isn't all bad, as long as its used responsibly. In theory, the use of credit allows companies (and individuals) to leverage their financial position. There isn't a real-estate developer or Fortune 500 company on earth that doesn't have some type of debt. Just pick up the 10-K of any publically traded company and I'm sure you'll notice that they have some of debt.

Additionally, if you're wise, you can use credit to your advantage. Some of my friends bought GMC vehicles when they had 0% financing and used their cash savings to invest in bonds paying 3-4%.

[PigDogg]

Agree with Limpdick, that if you can't afford to pay cash, don't buy it. Of course there are exceptions with real estate being the most obvious.

Taking advantage of 0% financing is also a smart move, provided you actually want the product that you're buying interest free.

Anyone want 25 bucks for free? And a 4.75% guaranteed interest? If so PM me and I'll send you a link so you can do this.

Market efficiency is bullshit. There's lots of opportunities to exploit price discrepencies. Ladyboys
are the best example. In Thailand you can get for 1000 baht what costs 200 bucks in the USA.
Likewise buying emerging market mutual funds (that don't fair price aggresively) on certain days (before 4PM when the US markets are way up) can give you an expected return of 0.5% for one day.

Getting a credit card that might have a 60 buck annual fee for year one and no fee afterwards can get you 17.K FF miles about a third of what you need for a free flight to the LOS. Lots of other ways to get miles for not flying. Your free flight can then be leveraged into getting 1000 baht encounters with smokin hot ladyboys.

[Guest]

   

You can't even rent a car in the states without a credit card. I am getting ready to sell my house for some very serious dollars. You cannot get an appointment without getting a "preview loan approval"! Advice from a accountant (my best friend) and the broker.  
Only "looky-loos" I want to deal with are the ones in the LB's clubs in Thailand.   And some of them I could pass on in a heartbeat.

incher

[Guest]

You can't even rent a car in the states without a credit card. ..... You cannot get an appointment without getting a "preview loan approval"!

This is not true. Several of the rental car companies will accept your debit card. And you can find mortgage lenders who are considered "human lenders" i.e. they look at your total financial position. A monkey could qualify people by looking at a credit score number.

People who have paid their bills, never used credit, and may have millions in assets will have a credit score of Zero. That doesn't mean they can't buy a house. You just have to find the right lender.

I *HIGHLY* recommend one of two books by Dave Ramsey. "Financial Peace" or "The Total Money Makeover".
Financial Peace I have read- I can't speak about TTMM, but I think it is a newer better rewrite of the original.

One warning: This is all "Christian" finanical advice. Which is silly, because allt he math still works. So whether or not that's your bag, don't let that turn you off. You'll just have to ignore a bible verse at the bottom of chapter pages or whatever.

Personally I don't believe in invisible people who live in the sky.

[PigDogg]

You'll just have to ignore a bible verse at the bottom of chapter pages or whatever.

and on the eight day, after the day of rest, God created the third sex.

[stogie bear]

You'll just have to ignore a bible verse at the bottom of chapter pages or whatever.

and on the eight day, after the day of rest, God created the third sex.      

Hallelujah, brothers!

[PigDogg]

Hallelujah, brothers!  

[Guest]

       

All you jumping for joy people, it still boils down to $$$$

Damn if you don't turn a money-speak thread in to a Baptist revival     Yes, you can use debit cards in someplaces: but it is a damn limited choice I can see the LB's pulling out their "swipe machines"! Ha, ha whoooie

Bye for now, incher

[PigDogg]

I can see the LB's pulling out their "swipe machines"! Ha, ha whoooie

The enterprising ones can modify theit butt crack into a swipe machine.