Re: How Much Is A Credit Score (FICO) Worth?

"Elle" <honda.lioness@[EMAIL PROTECTED]
> wrote:
> "Daniel T." <daniel_t@[EMAIL PROTECTED]
> wrote
> > joetaxpayer <joetaxpayer@[EMAIL PROTECTED]
> wrote:

> > > You suggested he get loans and pay a huge amount of interest.
> >
> > Not really. I suggested that doing so would raise his FICO,
> 
> Haven't you said in the past that, since the precise FICO algorithm
> is inaccessible to the public, one cannot know what happens to
> one's credit score when one takes on more debt?

One cannot know precisely what will happen, I'm sure even you can agree 
with that. That said, we know what the FICO score is supposed to 
represent and we can more or less accurately guess what should affect 
such a score.

> Whereas I contend that the general guidance on how one's credit
> score changes is well publicized. According to these guidelines,
> taking on debt may affect the FICO score positively or negatively,
> depending on the details.

The above is just too funny. So you say that general guidance says that 
taking on debt *may* affect the score positively *or* negatively... 
ROTFLOL!

Of course the "details" aren't known because the calculation of the 
score isn't known.

> From our past exchange this year, I realize we are not likely to
> agree on much here.

It seems to me that we are more in agreement than you would like to 
admit.

> Rather, I am posting so as to suggest others go to more
> authoritative sources,

Absolutly! Don't assume that *I* know what the hell I'm talking about.

> such as the guzillion consumer sites that give general guidance on
> FICO, and with which I have not seen any serious dispute. After
> all, if myfico.com 's guidelines are false, the repercussions would
> be serious.

Let's go with that... 
http://www.myfico.com/CreditEducation/ImproveYourScore.aspx

Pay your bills on time/get current and stay current.
Keep credit card debts low. (They don't say pay them off however...)
Don't close unused credit cards.
Don't open new credit cards, however opening new accounts and paying 
them off on time will "raise your credit score in the long term." So how 
should I take these two bits of advice?

And of course the grand daddy.

   Have credit cards - but manage them responsibly.
   In general, having credit cards and installment loans (and paying 
   timely payments) will raise your credit score. Someone with no credit 
   cards, for example, tends to be higher risk than someone who has 
   managed credit cards responsibly.

The OP obviously has not followed this advice. He hasn't made timely 
payments on a loan for 13 years now.

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