Author Topic: Some FICO Myths  (Read 15402 times)

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montag

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Re: Some FICO Myths
« Reply #90 on: March 12, 2017 04:51:32 PM »
Hits when you pay off the loans....No wonder Dave Ramsey calls FICO the I love debt score ::) Sounds like Dave's onto something when he recommends paying cash (or debit card) and making FICO a moot point.

Flyingifr

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Re: Some FICO Myths
« Reply #91 on: March 12, 2017 06:00:10 PM »
Hits when you pay off the loans....No wonder Dave Ramsey calls FICO the I love debt score ::) Sounds like Dave's onto something when he recommends paying cash (or debit card) and making FICO a moot point.

I agree with Dave Ramsey on many things. There are a couple where I disagree with him. He does have a point about FICO, but he fails to realize that FICO affects a LOT more than the cost and availability of credit. Here in Arizona it directly affects what I pay for both homeowners Insurance and Auto Insurance.

Another place where I disagree with him is his position on purchasing a Manufactured home. He is flatly against it because he believes they all go down in value, as opposed to stick built homes that only go up in value. 2008 taught us otherwise about stick built homes only going up in value. A Manufactured home that is permanently affixed to the land can go UP in value - you just have to buy it smart. I live in one that I bought for $40,000 four years ago. It is now worth almost triple that. The person I bought it from took a bath on it. I made a bundle. Just like with a stick built - you can make or lose a bundle.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

CleaningUp

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Re: Some FICO Myths
« Reply #92 on: March 12, 2017 07:28:05 PM »
Manufactured housing, if purchased from a reputable manufacturer can be of distinctly higher quality than a stick-built home.

And once it is erected, they both follow the same sorts of up-and-down in the real estate market.  The manufactured home may carry a stigma to start with, but the condition of the structure over time is the great leveler.


Moonshine Maker

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Re: Some FICO Myths
« Reply #93 on: March 12, 2017 09:13:49 PM »
I can't believe they required a co for a secured card. 

Mobile Homes in our area simply don't hold the value. !) They use very very thin wallboard 2) The laws on lending on mobile homes changed a few years ago in my state and most mobile homes require about $500 and 3 months of time to become loanable.    This cause buyers to jump ship. I would imagine any where else they would be better built but in my state. 

CleaningUp

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Re: Some FICO Myths
« Reply #94 on: March 13, 2017 12:19:09 AM »
"Mobile homes", the ones that take wheels and can be dragged along highways by a tractor and a safety car behind, are different than "manufactured homes" which are produced in modules that are transported by flatbed and erected on site. 

Once those are erected, they have a fair amount more structural stability and accuracy than stick built ones because of the production process.

They can also be built at less expense because of the production-line aspects of assembling the wall and roof panels.  Many of this type of housing can be assembled and closed-in ready for interior finish work in a matter a 15-20 hours.

And in an industry where time is money, that rapid assembly part can mean thousands in savings.


crandall10

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Re: Some FICO Myths
« Reply #95 on: March 13, 2017 01:20:29 AM »
"Mobile homes", the ones that take wheels and can be dragged along highways by a tractor and a safety car behind, are different than "manufactured homes" which are produced in modules that are transported by flatbed and erected on site. 

Once those are erected, they have a fair amount more structural stability and accuracy than stick built ones because of the production process.

They can also be built at less expense because of the production-line aspects of assembling the wall and roof panels.  Many of this type of housing can be assembled and closed-in ready for interior finish work in a matter a 15-20 hours.

And in an industry where time is money, that rapid assembly part can mean thousands in savings.
Actually, mobile homes and manufactured homes are the same thing.  In 1976 mobile homes officially became designated as manufactured homes by HUD

as they had better construction and weather properties as the mobile home manufacturers now had basic standards to adhere to.  Manufactured homes are   

assembled in factories on metal frames attached to axles and wheels, hooked on to metal tongues and then hauled out to the sites to be assembled to the other half.

Modular homes are framed in a factory like a regular stick built home on wooden bottom plates and joists and placed on a trailer, then hauled to the work site and

finished on the site.  Both types of homes can have a UBC designation as exceeding national building codes.  Both require cranes or a roll system to get them on the

foundations or pads depending on what the customer wants.

Flyingifr

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Re: Some FICO Myths
« Reply #96 on: May 09, 2017 02:24:59 AM »
I started this thread 3 years ago. In that time I have learned the following about FICO:

1: Paying off debt is BAD. I lost 60 points when I paid off my mortgage and 40 when I paid off my car. The only thing that lowers your scores faster than paying your bills is NOT paying your bills. FICO hates people who are debt free. I guess the reasoning is - if you don't owe any money then you may not make next month's payment on the debt you don't owe.

2: As the charge offs aged, the scores did not move. Age of a baddie, therefore, has no effect on the FICO score. As my charge-offs aged from 90 days past due to 6.5 YEARS past due, the scores changed less than 5 points overall.

3: BUT.... when the last one aged off I got score bumps of up to 215 points. In January 2017 all 3 of my scores were in the 580 range. As of today two of them are 750+.

I still believe the FICO score is a shell game designed to keep you in debt and paying interest. Why else would it reward you for being in debt (I got 10-15 point bumps for the two secured credit cards I opened in February - total credit line $1,000 and highest balance $22) and punish you for paying the debt off? It doesn't seem to care about your ability to make payments - if you are dumb enough to borrow and the lenders are dumb enough to lend to you, then FICO will reward you with points as long as you can make the payments, even if you are borrowing from Visa to pay Mastercard who then lends you money to pay Discover ad infinitum.

With this, Flyingifr is signing off this thread. I hope my 3 year experiment helped.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Bruno the JDB Killer

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Re: Some FICO Myths
« Reply #97 on: May 09, 2017 01:25:46 PM »
It's like somebody doing a road test on the Ferrari locked in your garage. Kind of hard to tell how it performs if nobody drives it.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

BrokeBob

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Re: Some FICO Myths
« Reply #98 on: May 09, 2017 01:59:00 PM »
I've looked at what they say are the criteria for FICO scores. 

The more credit lines you have, and the more different types of credit, the better.  Meaning, paying off a car loan or a mortgage hurts your score.  Any kind of loan is good.  They even suggest people take out loans they don't need just to improve their FICO scores.  For example, my wife has lots of store cards she rarely uses, but the fact that she has the cards, and sometimes uses them, drives up her score.  I NEVER use my store cards, so they keep getting canceled, which hurts my FICO. 

You can follow Dave Ramsey's advice if you want, but it will hurt your credit rating. 

It also hurts your score if you use the credit too much.

So the best thing is to have a small mortgage, a small car loan, and a lot of credit cards you use occasionally and pay off right away. 


ProSeCanYouSee

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Re: Some FICO Myths
« Reply #99 on: May 11, 2017 03:43:29 PM »
FICO Update:

Experian Score +48 for dropping only CC usage from 9% to 6%... Balance from $244.00 to $172.00

TU and EQ yet to report... but expect an update today.

Previously posted Bank Mortgage account status remains the same... Original Mortgage zeroed out.  Transferred Mortgage has yet to appear... transfer from Old Bank to New Bank was on 2/17/17. 

Any guess what will happen to Score when the New Bank finally reports the transfer??
Curiosity Killed the Cat, but Satisfaction Brought Him Back!

silverzgirl

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Re: Some FICO Myths
« Reply #100 on: May 15, 2017 10:07:13 PM »
I can confirm Flying's experiment. The last of the baddies dropped off and I jumped 100 points.

Age had no effect on them whatsoever, though people were more willing to lend to you.
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I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

Anza01

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Re: Some FICO Myths
« Reply #101 on: June 13, 2017 06:16:54 PM »
I was very close to what Flying and Silverz had.  At the 5-6 year range my credit jump from low 600's to very low 700's then around 6-7 dropped to 680.  Now I have all baddies gone (it's been 7.5 years now since my ordeal) and FICO is in the 780-800 range.