Friday, April 11, 2008

The Credit Score Scam

Most people think having a good credit score is necessary. This is the most successful marketing lie that exists in the financial industry. It only matters if you borrow money. Unfortunatey landlords, insurance companies, and various other companies have started using it as a guide. It is the lazy mans evaluation of a person's creditworthiness. Unfortunately, since there are so many errors on credit reports it has become an unreliable source of evaluating creditworthiness. Getting these errors corrected is a formidable task. While you are correcting them, more errors appear. It is a losing battle.

Despite what most people think, the credit bureaus don't work for consumers, they work for creditors. They will not accept any information from a consumer without undisputable proof, while the creditor just simply needs to make a claim and it is slapped onto your report unverified.

What's more, the scores themselves have now become a way to rip off consumers. There is the FICO Score (considered the standard), and then each credit bureau has their own proprietary score. They have started giving away "free" credit reports, which are little more than bait for subscriptions. The consumer thinks they are purchasing accurate information, when each bureau is likely to have vastly different information, and the score they give looks higher than the actual FICO score. There is a lawsuit in progress attempting to address this.

You even have to be careful about who you get your financial advice from. Suzy Orman is in bed with Fair Isaac and touts the value of a good credit score because she makes money when she does. However, Fair Isaac has recently settled a class action lawsuit against them involving Suzy Orman and her "FICO kit" for claims that they violated the federal Credit Repair Organizations Act and various state laws. They got away with providing "free" 3 to 6 month subscriptions. Ironic, since the FICO score marketing is all about improving your score, yet the scores continue to be fraught with countless errors, helping them continue to sell credit repair for their own mistakes.

The truth is that if you don't borrow money, the FICO score formula gives you a poor rating. In actuality, you are the lowest risk. Lenders who pay attention to what they are underwriting will see this. The score means little in the end with lenders who pay attention who they are lending to. As for the others, the landlords, the insurance companies, and employers. You can simply point out the errors and usually get past this screening. If you don't borrow money and tell them this is your policy, they should think highly of you regardless of the zero FICO score.

15 comments:

Greg said...

I find it interesting that although credit scores came from the 3 credit agencies, with faulty and fraudulent scores, these people have not been made to acct, for their complicity?
Banks and everyone else have been blamed, why has the public not been appraised of thier standing.

Jim Anderson said...

Unchecked political power and apathy of those who are affected, or at least the unwillingness or inability of citizens to hold them accountable in the courts.

Credit Repair said...

Hello,

Thanks for all of the Information on credit score. This blog really inspires me and makes me want to go out and do something!
________________
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mysexybumno15646 said...

I have had money taken out of my account since Aug last year via too companys who are sister company's I have never used either of these companys at all yet they have all my details back accounts ect the 1st one is called rewardssnow and the 2nd one is creditmatters at the rate of £39.90 for 6 months is a tidy sum where did they get my details from??? no answers were given my back knew about these too company's yet will not refund me back the cash they allowed them to take the money so any help here would be thankful Theresa

Syed said...

A credit card is part of a system of payments named after the small plastic card issued to users of the system.
Plastic business cards

spinbrain1 said...

This should have been outlawed as an act of treason or terrorism. I don't know of any other program that has terrorized American citizens more than the credit score scam. besides maybe the social security tax scam. its just another tool from the corporate banking system to promote wasteful spending and over budgeting. And yet for their bad decisions and wasteful spending they receive bank bailouts from the federal government. but for the citizens its more limitations and regulations.

BIG DAVE said...

A COCO SCORE IS A FICTICIOUS NUMBER MANIPULATED BY THE CORPORATION TO CONTROL THE MASSES. IT IS ALSO A LEVERAGE TOOL TO INSTILL FEAR INTO THOSE WHO PLAY INTO THIS GAME.

DO NOT BELIEVE THE HYPE. YOUR CREDIT SCORE IS MEANINGLESS. TENS OF THOUSANDS OF CONSUMERS ARE SCAMMED OUT OF THEIR HARD EARNED MONEY BY BUYING INTO THE PROPAGANDA OF GOOD CREDIT IS THE KEY TO SUCCESS. THIS SYSTEM IS RIGGED. YOU CAN STILL GET A LOAN, JUST GIVE A STRONGER DOWNPAYMENT.

BIG DAVE said...

A FICO SCORE IS A FICTICIOUS NUMBER MANIPULATED BY THE CORPORATION TO CONTROL THE MASSES. IT IS ALSO A LEVERAGE TOOL TO INSTILL FEAR INTO THOSE WHO PLAY INTO THIS GAME.

DO NOT BELIEVE THE HYPE. YOUR CREDIT SCORE IS MEANINGLESS. TENS OF THOUSANDS OF CONSUMERS ARE SCAMMED OUT OF THEIR HARD EARNED MONEY BY BUYING INTO THE PROPAGANDA OF GOOD CREDIT IS THE KEY TO SUCCESS. THIS SYSTEM IS RIGGED. YOU CAN STILL GET A LOAN, JUST GIVE A STRONGER DOWNPAYMENT.

Mike Hussey said...

Thanks guys, for sharing this conductive accumulation
where to find credit report

David Oney said...

And you allow the advertising of the big 3 credit agencies on the same sight you blog on?
I guess I don't understand.
Confusion, contradiction, or is it just a BRILLIANT move that we are all too blind to see?
Please respond

Jim Anderson said...

Ask Google about the advertising. It seems I don't have much control. It has something to do with the websites you frequent as to what ads you see. Must be a brilliant move on Google's part...

Jim Anderson said...

BTW, I haven't seen a penny from the advertising...

Julie Johnson said...

Extraordinary work you folks are doing with this webpage.
3 credit scores

Helena Kyle said...

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catsrevenge said...

Credit score scam no doubt. What about all the good and timely bills which are regularly settled and monthly payments which are made ON TIME,FOR YEARS and YEARS. Does that count for nothing to these scam artists? If I had a dispute over one or two small bills over the years which I refused to pay simply on extenuating circumstances and on principle of firm correctness,why do credit bureaus automatically side with the creditor? Especially given that they do not know the circumstances. So,according to their warped and distorted thinking,If over the last 10 years I have paid all bills on time ie: 1000 payments made on time,and 2 bills I refused to pay for a very good reason,then the two payments not made far outweigh my otherwise excellent record? I don`t think so. Also,If I am seeking a loan and submit multiple requests to multiple possible lenders,why are people punished with a lower score simply for seeking to connect with a lender,once again senseless thinking.