The ratio of debt to available credit is a major factor in determining the score (old discussion; info already incorp'd)
I'd like to add that the ratio of debt to available credit is a major factor in determining the score. I don't have access to a scoring model, so I can only estimate that this factor is less important than ongoing debt, but more important than length of credit history (i.e. 3rd place on the list of bullets). If there are no comments in teh next coupl of days, I'll add this. Simon G
Simon,
Nobody has an accurate model for scoring because it is a 'secret forumula' owned by a private company- Fair Isaac Corporation. No offense, but unless you reference the sources of your opinion with publicly-available studies, it would remain 'your opinion'. ~CreditWatchDog
CWD
Unfortunately I can't do that, because my knowledge comes from working in the credit industry for the last 10 years or so. I'm not sure of how to reference "common knowledge" in a professional field. Suggestions welcome! :) Simon
I take it that CreditWatchDog doesn't have any useful comment to make, after all, beyond a excessively wikified mish-mash of the obvious and the obtuse. Perhaps it would be best if he left it to those who are competent to comment, in future. Simon
Paying Off Collections Improve Credit Score Video
Credit rating is not a synonym for Credit score
"Credit rating" currently redirects to this article, "Credit score".
The term "credit rating" is used more broadly than "credit score" in the "credit rating" is a metric applied at the institutional and financian instrument level in addition to the personal level. For instance, it is appropriate to say "the credit rating of the company's bond issue was AAA", in which case there is no possible reference to personal finance. I'm not qualified to compose an appropriate article to ameliorate the confusion, but I trust that a domain expert will step forward to do this composition, or put me in my place as not knowing what I'm talking about :). Regards, Courtland 02:34, July 31, 2005 (UTC)
Usefulness of article
This article is of limited use unless you happen to live in the USA. Might it be better to move it to Credit score (USA) ? Arcturus 22:20, 13 December 2005 (UTC)
There are many credit scores around the world, one of which I am the author of. Wikipedia is not the place to try and establish a single vendor as owner of a generic term. Also, just because an author thinks he knows how the formula works, this doesn't mean he actually knows how it works, nor should he publish guidance that suggests he has the answer.
I suggest most of this content should be removed and relocated.
Would anyone consider adding a paragraph "building up a credit score from scratch" ? This would be extremely useful for foreigners who intend to live in the US. Especially if you plan to stay just for some years e.g. visiting scientists, certain aspects of everyday life are really hard to cope with. Using a foreign credit card e.g. is more than inconvenient if you are a resident alien (and it's really expensive!)
Bankrupcty Risk Score
When will this be further investigated and included to wikipedia? --ConradKilroy 16:38, 25 February 2006 (UTC)
There's the Bankruptcy Navigator Index (BNI) score, produced by the US credit bureau Equifax.--Preceding unsigned comment added by KidC (talk o contribs)
credit rating
Are you penalized if you use a credit card every month and pay it off every month even before you get the statement?
I was told I have derogatory statements on my credit report and trying to figure out if that is it or if the fact I have taken a year to payoff my hospital bill is it
so if leaving $5 on your account each month is better than paying off your entire balance, then what is the advantage of such cards as american express charge cards where you are required to pay off your balance each month? these cards seem to be targetted towards wealthier folks whom the credit card company is not worried about making their payments. i am also trying to understand whether it is better to pay it all off or to leave a balance.
:I use my credit card for all of my purchases and always pay in full at the end of the billing cycle. I have a FICO score of around 750 (which is pretty good). Papercutzz2 (talk) 19:55, 29 March 2008 (UTC)
Australian Credit Scores, Any Different?
Does anyone know if Australian credit score calculations are done any differently from American ones?
I found a clean credit resource website with several articles on improving your credit score, but they seem to have an American slant.
Does anyone know if the same principals apply for Australia?
Cheers, Sammy
FICO score of zero, etc
I don't see a citation for the FICO score of zero for the financial adviser, but it is impossible. The minimum FICO score is 300.
The idea of "needing" a FICO score is also misinformed, since it is impossible to not have one, no one is in need of a score.
As far as cell phones, all major carriers require either credit checks or huge deposits. One company requested $10,000 from a friend of mine a few years back. I am not sure if they use a FICO score, but they do use some scoring system. If your score is poor you can still get a cell phone and service but often with lower spending limits and other restrictions.
The pie-chart distributed by Fair-Isaac is inaccurate. For example, if you file for bankruptcy your score will drop dramatically, this is not represented on the pie-chart at all.
I'll let this sit for a while and give the anon editor a chance to respond.
Justforasecond 18:30, 30 March 2006 (UTC)
I work at a large Canadian Bank. If you have no bureau history (i.e. score) your credit application will be treated as high risk, so you're either declined or offered a lower credit limit/higher interest rate. Historically, borrowers with no bureau history are very high risk. KidC 16:51, 16 August 2007 (UTC)
A credit score of zero could be the result of never having borrowed money from a financial institution. My grandfather was a farmer who had never borrowed a dime from an institution and he didn't have a credit score. --Drizzt3737
Purpose of a FICO score
I changed the "Purpose of a FICO score" section. Perhaps the whole section should be deleted because it isn't sourced. At any rate, the section was very badly written and wasn't even grammatically correct in many places. I kept the content roughly the same, I therefore don't necessarily endorse the content but it nonetheless it needed to be cleaned up and made more academic in tone. (I also the removed the dubious "qualification" of "New York Times Bestselling Author." The "Left Behind" authors are also "New York Times Bestselling Authors". 66.74.157.12 20:26, 3 June 2006 (UTC)Dave
I deleted the whole thing. It directly contradicts information from the rest of the article with absolutely no citation. Until it's fixed, it doesn't belong in an encyclopedia entry. Josh 02:32, 14 July 2006 (UTC)
Vantage Score
The vantage score is avalible from all three of the credit reporting agencies, and is offered as a competitor to FICO. This should be noted. I work for TransUnion, so I probably shouldn't be the one to write this section of the article, but somebody should do research and add info about the Vantage score.
why isn't annualcreditreport.com on a *.gov tld?
I'd have a lot more faith in annualcreditreport.com's being a legit site if it were on a *.gov domain. Why isn't it? I mean, the people who issue *.gov tld's are responsible for the existance of this website, aren't they? TerraFrost 03:34, 16 October 2006 (UTC)
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm --The preceding unsigned comment was added by 65.32.171.253 (talk) 04:41, 28 February 2007 (UTC).
Citations needed
I've noticed a lot of "Some consumers believe", "Many companies use", etc. in this article, without any citations to back them up. Could people add in some reputable-source references for some of these, so that readers can ensure that what they are reading is accurate, and not just something that a random Wikipedia editor thought up? --??org 13:51, 4 January 2007 (UTC)
Rights to know Credit Score?
I was disappointed when the law requiring credit reporting agencies to provide a free credit report (in the U.S.A.) didn't require one's score to be included. Has there been any discussion about this, and is there anything relevant to this that could be included in the article?
Credit history via SSN
The bad credit fixer would like to discuss the issue of credit history being generated by accounts assigned to social security numbers which in many instances are not correct or can be faudulent.
Social security numbers are public and can be obtained from any 1003 Residential Loan Application or purchasing leads from the credit bureaus. This practice has created the situation where millions of Americans find accounts which are not theirs on their credit reports.
In most circumstances these accounts create a negative credit history and it is very difficult if not impossible to get them removed. Instead of innocent until proven guilty, individuals are considered responsible for the accounts until they prove otherwise. This is ridiculous. --Preceding unsigned comment added by 69.234.229.125 (talk o contribs)
FICO model is flawed
Based on my recent credit experiences, although the calculation proposed in the FICO looks good it is depending on data input from several credit corporations and banks, that offers a great door to unfair credit scoring.
I explain myself, my score was greatly lowered recently.
I investigated the issue to discover that I had a pending 100$ balance on an old phone service that I canceled in 2004. The company just sat there and tried to mail me to my old address with obviously no success.
We are in 2007 now and they still never managed to reach me, that is, even after giving my account to a collection agency. My phone number and address are publicly available. Anyone can find me and eventually call me.
Nobody called me and my account has been delegated to 3 different collection agency since 2004.
The original company plus the 3 agencies. That makes 4 entities that didn't really bother to find me for the 100$ that was due. They sent mail that I never got.
I just recently ordered a credit report for myself because I wanted to see where I was standing. Surprise!
Very low score, main reason, I had a collection agency registered on my profile and a 100$ balance due. Probably sitting there since longtime...
I'm the one who found the agency, called them and told them that I owed them 100$ based on my credit report. I wanted to know why and where this balance was coming from. After spending a day on the phone I discovered what it was and I paid the freaking little 100$.
I called the original company, they could not care less about the fact they put me on this bad situation by reporting me to the credit reporting agency without ever speaking to me first. If I would have been aware for a second that I had a 100$ balance with them, I would have paid it!!!! I mean come on!!!
They mail to nowere and then they send my case to collection! No one ever called me. (A telecom company!!!!)
Worst thing is, statement from my credit report: "Bear in mind that satisfying that satisfying or paying off the collection item or derogatory public record will NOT remove this information from your credit bureau report. The fact that it occurred is still predictive of future repayment risk, so it will still be considered by the score. (For 6 years)"
Ya right Columbo, you're such a great detective that you think the way the telecom company handled my account is 'predictive of future repayment risk' for me!!!!!????!!!!
I called the Telecom comany about it. "Sir there is nothing we can do, it did go to collection, the report is right!" I replied, "Well you can certainly do something about it, write a letter to the reporting agency to explain the situation" "We don't do that sir, we never did and never will. We are big and blablabla"
I could not believe it. I called Equifax about it, they could not do anything about it. To all these people, my account has been sent to collection for real and the report is good.
FICO is dependent on the companies that feed it's data input...
I don't know what to do anymore. Equifax and the telecom company are on the other side of the fence, holding there hands together like an old couple and are laughing at me, the little circus pet.
How about we implement a credit scoring system that will need a log of the actual communication attempts that led an account to collection. What if we implement a credit scoring that will consider collection as: first, an attempt to locate the individual. Second to probe the intentions of the individual in regards to the balance due? (I pay you immediately = good score, I refuse to pay = bad score)
How to make this system proof again bad handling of corporations that are "too big" to keep a good business relation with it's good client that are fully willing to keep things straight and pay the bills on time?
Since I learned all of this, I'm against credit verification to the bone. Especially if it's NOT to lend me money; like the the owners of apartments, and all other type of entities that I pay before usage of the service.
Especially insurance company that I will pay entirely on one shot! What do you wanna check me for, I pay you up front!
Plus everytime people check, your score goes down!
Only a bank lending you money should have access to this kind of tool.
Well, I've always been a good payer that honor his debts, now corporations and computers have affected my reputation badly. Nobody want to lend me money no more, looking at me like the 'bad payer' that I'm said to be...
FICO is a dangerous tool, watch out folks! [unsigned]
flawed use of "median"
I've removed an initial references to a "median" where it was apparent that the user didn't understand the statistical concept. ~~ Mike S
Is this wrong?
Although not as widely used, these scores (e.g. TransUnion's "TransRisk", Experian's "ScoreX", and "PLUS" scores), are less expensive for borrowers to buy than is the FICO score.
Should that be "less expensive for lenders to buy"? DiggyG 01:13, 4 October 2007 (UTC)
Merge suggestion
An IP user added the following to the article. I have tagged the article with a merge suggestion. I have no opinion abut the validity of this suggestion:
Gwernol 14:30, 28 December 2007 (UTC)
- I disagree with the merge. This has nothing to do with whether America is accorded importance; it has to do with whether the subject meets the notability guidelines and whether there is enough information or potential information to write an encyclopedic article. The answer to both is yes, so a merge is not the way to go.--Kubigula (talk) 15:28, 28 December 2007 (UTC)
How does one get a credit score started?
I'm MartinD, on the Dutch Wikipedia. I just wrote a short article on Credit score there, and I thought of the following question. One needs a credit score to obtain credit (credit card, a loan, etc.), but in order to obtain a credit score, one has to show that one can be entrusted with a credit card, etc, it would seem. How does an American get out of this loophole, or am I mistaken? Perhaps it would be possible to obtain a credit card with a small limit, on the basis of "nothing adversely known"? Any answers would be greatly appreciated. Best regards, MartinD. --Preceding unsigned comment added by 82.171.24.219 (talk) 21:13, 25 February 2008 (UTC)
-
- Hi Martin,
There are a couple of ways to start your credit here in the US.
- parents or someone with credit co-signs with you on a loan. They take the responsibility if you stop paying.
- get a rediculous high rate credit card or car loan (20-45%) to build your credit.
- and the worse yet...the only option I had as a young person...I was offered a $1500 bank loan at 15% interest...wait...it sounds fine right? NO! I was given the loan and automatic payments were set up...HOWEVER...I was not allowed to use or touch the money in anyway. Basically I was charged 15% interest that the bank was then able to turn around and loan right back out since it was in a non-touchable savings account. THAT is how I began MY credit journey!! Cheers, RobinMybuddyrobin (talk) 07:07, 7 March 2008 (UTC)
-
- Martin, it can actually be even easier. When you open a regular savings account with a bank, you sometimes get the option to apply for credit at the same time (your ATM card gets a Visa/Mastercard/etc. logo on it and you can then use it to charge things. In my case, I opened my account in high school, and after I turned 18 I was offered a credit card with the ability to borrow up to the amount in my account, which was about $1000 at the time. They raised my credit limit in future years as my savings increased. Heian-794 (talk) 17:42, 26 April 2008 (UTC)
Removed NPOV template
The section "Makeup of a Credit Score" had an NPOV template, but the talk page contains no discussion of said NPOV problem. I've removed the template.palecur (talk) 17:49, 2 August 2008 (UTC)
Scoring facts
There is one citation in this entire section, which reads as if it is OR. Needs citations for every contention in the section. o Freechild'sup? 02:03, 20 December 2008 (UTC)
Should information on how to doctor a score be included?
What is Wikipedia's policy on mentioning how to do something wrong? For example, should an article on terrorist attacks include information on how to commit one? Is telling readers how to doctor a credit score appropriate? --Preceding unsigned comment added by 66.10.94.38 (talk) 23:17, 1 March 2009 (UTC)
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