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

In article <tgjYj.501$4m2.463@[EMAIL PROTECTED]
>,
 "Elle" <honda.lioness@[EMAIL PROTECTED]
> wrote:

> "Mark Bole" <makbo@[EMAIL PROTECTED]
> wrote
> > For purposes of this thread, it seems the distinction is 
> > irrelevant, as the FICO score forecasts *payment* ability, 
> > regardless of whether those payments are to close out a 
> > credit balance, settle a utility bill, pay rent on an 
> > apartment, or return borrowed money.
> >
> > The huge thing that is missing from the forecast, of 
> > course, is the existence of present or future income, or 
> > liquid assets.  What strikes me as peculiar is that I can 
> > have a great FICO score, take out a huge loan,
> 
> But of course, one generally cannot get a mortgage loan 
> without a satisfactory income. I think what is missing from 
> the thread is that, per many sources, the three Cs of 
> mortgage underwriting are credit, capacity, and collateral. 
> The FICO score takes into account only the credit part. 
> Capacity takes into account income (not just amount but type 
> of income and so apparent stability).

I guess I even dispute that statement.  FICO does not look at
assets or savings, only debts.  I think credit part has to
include assets to be fair.  After all, is someone like Bill
Gates a bad credit risk if he has no loans outstanding, and
thus a zero FICO?  And if a person can handle a $200K loan,
but also has another $100K in the bank, aren't they a better
risk than someone with $0K in the bank and $50K in credit card
debt?

I still only see FICO as a measure of how badly a bank can
rip you off, not what a great deal they can give you.

-john-

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John A. Weeks III           612-720-2854            john@[EMAIL PROTECTED]
 
Newave Communications                         http://www.johnweeks.com

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