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Fico Scores ! Are you ready to help change the system ?

By
Mortgage and Lending with One Stop Mortgage, Inc

I would like to ask you  if  you have  reviewed your credit report lately ?  As you probably know by now, your interest rate, along with loan amounts and available credit on credit cards is based off your Fico scores.  The problem with that is most credit reports have atleast one if not several mistakes on them that impact your score negatively.

Speaking from my own experience as a Mortgage Broker and my own personal credit review, I have found balances on old accounts that were paid off, unsecured loans that report as secured, mortgages that report as revolving, and derogatory that is incorrect.  The available credit verses balances can be impacted due to a mortgage being reported as a revolving.  Who would want to lend to someone who looks like they have $100k in revolving debts ?  Or how about the impact that the mistake has on your score ?

Everyone uses the credit scoring system for credit these days, and I believe the credit agency, along with the actual lender needs to be held accountable to report accurate information.  I wonder how many of us are paying higher interest rates than we should be due to inaccurate credit scores that stem from inaccurate reporting.

I am interested in a CLASS ACTION LAW SUIT against the Bureaus and the Lenders and would like to know if anyone else is ready to stand up to this unfair system.

If you have a perfect credit report with absolutely NO MISTAKES, you are one of the very few.  Most credit reports have atleast one inaccurate report.

IF WE ARE BEING SCORED, LET'S MAKE THEM DO IT WITH ACCURACY !!!!

Comments (9)

Edite Liepina-Lawrence
ERA Tradewind Real Estate - Longmont, CO
I agree, it should be accurate. Good luck fighting the system!
Apr 17, 2007 11:27 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
I seriously considered something like lobbying for a change in credit reporting and how banks seem to give people lines of credit that more than exceed what they can even make in a year.  The odds are stacked against the consumer when it comes to anything dealing with credit cards these days and it's unfortunate that it affects millions of Americans. Lobbying may be a bit extreme but something DEFINITELY needs to change.
Apr 17, 2007 11:29 AM
Jean Sicilia
One Stop Mortgage, Inc - Bolingbrook, IL
If we don't stand up for our Rights, no one will.  It is time for all of us to pull together.  Whether it is lobbying, taking it to our local news, or to our government.  WE need to stand together.   There is POWER in numbers
Apr 17, 2007 11:33 AM
Chuck Dellorto
Coldwell Banker - Serving INDIANA & ILLINOIS - Highland, IN
"Talk To Chuck"

Jean,

I agree with you but...as Edite said it will be very difficult fighting the "system". One idea would be that all 3 credit bureau's are fed into one report. That report would have to be made available to us FREE each month so we can monitor it and request the proper changes on a monthly basis. Just a thought.

Apr 17, 2007 12:22 PM
Anonymous
Anonymous
I know this would not be easy.  But I also know that not long ago, several people took some credit card companies to court and WON !  The credit rating system is a good idea as long as all the bureaus use the same format for scoring and the lenders report accurately.  The system is FAILING as it is now, and we are the ones who pay the price  ( or should I say interest rate ).  I have seen people with one account open for 6 months with a high credit of $500.00 have a higher score than someone who has been paying as agreed for several years with several credit cards.  The system punishes you if you use your credit, regardless that you pay as agreed if you use more than 50% of your available credit.  It also punishes you if you don't have credit cards.  They need to make the scoring system and how it is calculated available to the Public.  Along with accuracy, it might work for us instead of against us.  I BELIEVE the system has holes in it, and we need to make them accountable.
Apr 17, 2007 12:44 PM
#5
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
I just think it's crazy how if I loaned someone money and charged an interest rate similar to credit cards I would most likely be sued.  BUT it's ok for the banks to do it?? "Because they can"  is just not a good enough answer for me.  The whole system from receiving credit card applications in the mail when the person can't or shouldn't qualify to the actual reporting of any debt needs changed.  sad.
Apr 17, 2007 02:30 PM
Anonymous
Anonymous
Hi, I agree that if you have a lot of bills and credit cards that you just charged up, and just let go, and never want to pay, then you should have a low score, or be paying higher interest rates, but for some of us, we made a few credit card mistakes, and some of the credit cards, like capital one, only give a limit of 200 to people with no or bad credit, and they take out about 70 in fees right away, then they charge an overlimit fee of $25 each time, and $25late, long story short, before you know it, your $130 card is being reported as a balance of $1500. How did they do that, but anyway, it is now 4 years later, and after checking my report, I found old mci long distance, then collection agencies for things like $80 late fees at video store, and some things were double because the company would have it reported, then when they charged it off, that collection agency is reporting it, so it looks to me, worse than it really is. So I only now have 1 credit card, with a $400 limit, that I pay on time each month to establish some credit, but my score was 525, so I decided to dispute these items on my report, and they were all at least 4 or 5 years old. It is so easy to do online on their website, and I was told by someone, that you can dispute every 30 days, and sometimes they will get deleted if you dispute. I got a couple of the collections disputed but the capital one is still on there, and so is a dr. bill, and a couple other things, but they are all at least 4-5 years old, so I stopped disputing them, hoping the fact that they were old would help my score, since I got some collections paid and removed, so about a month and a half ago, I get my report again, and it actually came down lower a few points. I was shocked. I looked further on the report, and notice in the 81 month history section below capital one (which by the way said opened 2001, CLOSED 2003) showed recent late payments. In that section, it had "over 90 days late" in the month of january 2007, JUNE 2006, then it said DATE REPORTED: APRIL 2007, DATE OPENED NOVEMBER 2001, $1700 BALANCE, AND THIS CARD WAS CHARGED OFF IN 2003, LAST ACTIVITY 2003, SO HOW COULD THEY BE REPORTING THAT? HOW IS IT FAIR FOR THEM TO REPORT ME AS RECENTLY LATE, WHEN THE ACCOUNT IS NOT ONLY CLOSED, BUT CHARGED OFF, AND NO ACTIVITY SINCE 2003. I WAS 90 DAYS LATE IN JANUARY OR JUNE, I WAS LATE IN 2003.  BUT I AM ON TO THESE CREDITORS, THOSE MONTHS ARE THE MONTHS THAT I DISPUTED  IT ON MY REPORT WITH TRANSUNION, SO THEN THEY RESPOND, AND GIVE THE STATUS THAT IT WAS IN WHEN IT WAS OPEN, BUT NOW IT LOOKS LIKE I HAVE ABOUT 4 BILLS THAT JUST GOT REPORTED, AND WERE RECENTLY LATE, WHEN THEY HAVE NO ACTIVITY BY ME FOR 4 OR 5 YEARS.  So, it's not fair, how they have my credit/balance ratio, because they count the balance of the closed accounts, and capital one shows a balance of $1600, when it fact they have been paid when they charge it off, and the account reports as closed, but the fico score adds something like that to my total balance, and my available credit is the good $400 card, but my credit/credit ratio significantlly gets lowered, because it looks like say I have $400 available unused credit, it looks like i have 1600 charged up balance, and only $400 available. How can I get that corrected so my credit/balance ratio can be flipped.  How can I get the bureaus to remove those reports of late pays in 2007, on accounts that are closed and inactive since 2002. I have disputed, but I still find them on there. So I was probably better off not disputing the old things, because these sneaky people found a way to make it hurt me, in hopes that it would keep consumers from taking up their time to investigate, or whatever they actually do, (3rd party computer generated system or however they really do it) I am so frustrated, because my beautiful house is closing in about 6 weeks, and my score is basically still poor. I even have a paid off home loan, that was never late, but because my score is low, the mortgage lender wants to charge higher interest. Why can't they base it on actually reading your report, and looking at what is important, and so they can physically see that I paid a 2800 a month home payment for 36 months from 2002, never late, paid off car with only 2, 30 day lates, but paid as agreed for 4 years, closed in 2006. Those are newer creditors on my report, and they are good, but because of some old collections for blockbuster, and capital one, (trying to report missed payments in 2007, and 2006) for a closed account since 2003, which makes my score lower, that is what they base it on, the low score. Not fair.HELLLLLP IF ANYONE KNOWS WHAT I CAN DO QUICKLY. I DONT THINK DISPUTING THE ERRORS AGAIN WILL HELP
May 07, 2007 06:11 PM
#7
Anonymous
Emily

Did you hear about the latest credit score news? FICO is changing their formula because credit repair fraudsters have taken advantage of a loophole. It's interesting that they'll change for this...but not other consumer complaints. Our credit scoring expert, John Ulzheimer, is covering it on our site - http://www.creditbloggers.com/2007/06/what_does_the_f.html

 

Jun 07, 2007 05:57 AM
#8
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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