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Consumer Reports says: Don’t buy useless credit scores

Reblogger
Real Estate Agent with Samson Properties SP98364271

Don't buy useless Credit Scores. I didn't say it. You will have to read this blog to find out exactly what it is that I am talking about. After reading this one somebody might start a lawsuit against FICO. Just read the blog to see what I am talking about. Hope everybody have a great day.

Original content by Thomas Halzack MLS#: 988459


In the recent July issue, they tell the consumer not to buy the FICO score or any other. Why? They say the Fair Isaac score, and most of the others, are not reliable.

“But the FICO scores that millions buy each year for $20 a pop are not the scores that car dealers, auto-finance companies, mortgage lenders, and others use. Moreover, after reviewing materials that Fair Isaac provides only to lenders, we think the scores are inferior.”

They go on to explain that legislation has been introduced in March that would require free annual disclosure of scores that lenders actually use, which are ‘now typically kept secret’.

For the record, I am 100% in favor of complete disclosure.

It goes on to state that the Consumer Financial Protection Bureau also believes consumers shouldn’t rely on them to consider how lenders view their creditworthiness. Strangely, but significantly, in 20 to 32% of cases studied, “the consumer and lender scores rated the same credit file differently enough that the scores were one or more credit-quality categories removed from each other.”

So, I guess, the question is….why?

And then the next question is….until they pass legislation requiring identical reporting or something close to it, what is a consumer to do?

Something that is accurate by 68-80% sounds like it needs a lot of work. But it is better than having no knowledge at all. They recommend just getting your free annual credit reports from AnnualCreditReport.com, but stagger them, one every 4 months from each of the big 3 bureaus.

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