Friday, October 10, 2008
HORRIBLE article on credit scores by the CORRUPT National Consumer Law Center
This article was reposted at another one of those cream skimming consumer lawyers blogs at http://www.creditlawnetwork.com/understanding-credit-scores-improving-credit-scores:
What can consumers do to improve credit scores?
Credit scoring models are complex and often vary among creditors and for different types of credit. Only the creditor can explain what might improve a score under the particular model used to evaluate a credit application.
Scoring models generally evaluate the following types of information:
Payment history. It is likely that a score will be affected negatively for late payments, accounts referred to collections, or bankruptcies.Amount of outstanding debt. Many scoring models evaluate the amount of debt compared to credit limits. Debt amounts that are close to the credit limit will likely have a negative effect on a score. [WRONG, WRONG, WRONG!!! Even a 30% ratio is often a MAJOR negative FICO score factor.]
Length of credit history. Generally, scoring models give more points the longer a customer’s credit track record it. An insufficient credit history may have an effect on a score, but that can be offset by other factors, such as timely payments and low balances. [WRONG, WRONG, WRONG!!! Absolutely nothing can help with FICO scores like an OLD account. And that includes AUTHORIZED USER accounts, despite Fair Isaac’s lies about AU accounts no longer being rated.]Recent applications for credit. Many scoring models consider whether a consumer has applied for credit recently by looking at “inquiries” on the credit report. A lot of inquiries can negatively affect a score. However, not all inquiries are counted. Inquiries by creditors who are monitoring an account or looking at credit reports to make “prescreened” credit offers are not counted. Credit inquiries made by consumers of their own credit records aren’t included either. Some creditors and credit bureaus claim that they do not even consider inquiries. Others claim that a lot of inquiries will have only a small impact on a score. [WRONG, WRONG, WRONG!!! In fact, many inquiries NOT related at all to credit applications such as opening a bank account, cell phone, utility, car rental, apartment rental, etc. are all rated by FICO scores and which creditor does NOT use some version of FICO scores? NAMES please!]
Number and types of credit accounts. Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on a score. In addition, many models consider the type of credit accounts and give more points to what they consider a healthy “mix.” Under some scoring models, loans from finance companies may negatively affect a credit score.Scoring models may be based on more than just information in a credit report. For example, the model may consider information from a credit application as well as information about jobs or occupations, length of employment, and homeownership.
To improve a credit score under most models, it is best to concentrate on paying bills on time, paying down outstanding balances, and not taking on new debt. It’s likely to take some time to improve a score significantly. Errors involving negative information should be disputed. (See NCLC Consumer Guide, “What You Should Know About Your Credit Report.”)
*Reprinted with permission from National Consumer Law Center, Fair Credit Reporting, “Understanding Credit Scores” (6th ed. 2006).
The NCLC and these corrupt lawyers act as direct extension of Fair Isaac, the credit bureaus and the creditors (Chase and Citi) who you can thank for the credit crisis.
I still recommend the NCLC law books on credit and collection litigation, but they are clearly on the OTHER side.
There is no credit lawyer who is not aware of my research and doesn’t know that credit scoring and reporting is a total fraud. However, in order to protect their “working relationships” with the credit bureaus and creditor lawyers, they HAVE to spew this garbage.
This law blog features many lawyer posts with nothing but misinformation.
They don’t approve my comments and recently disabled comments. They’re the mouthpiece of the powers who run the show, the lawyers are dutifully doing their job, posting propaganda to keep the people from finding out what’s REALLY going on.
Never once have I seen posts at this blog documenting the credit bureaus’ refusals to correct, anything negative about credit reporting and scoring or anything requiring more intelligence than reposting of the official propaganda.
As regular readers know, I documented FICO scoring bugs including the entirely FICTITIOUS late payments added by Fair Isaac.
It’s really too bad that so few people care about exposing the corruption of the credit system.
If you’re interested in more info on the collapsing system and proposed solutions, please check my new site on the Credit Crisis.
2003 Suit (appealed, Experian filed credit reports on PACER) • Fair Isaac - credit scoring fraudware • Corruption • (3) Comments • Permalink
