U.S. banks to make $38 billion from overdraft fees

[Pete]

FICO Score Composition:

Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%

FICO is the Fair Issac Corporation and the Big 3 use this model for their FICO scores. The formula has stayed pretty steady. As for the rules and the like they stay pretty steady as well. It seems to be the opinions about the rules (and how to apply them) are what are all over the map.

Choosing to not participate in any of this is an option some have chosen. The result is a bit higher insurance rates but all in all it beats being jerked around by lending institutions, credit card companies, etc.. Hard to jack around the payment date, interest rate, billing cycle, etc, if you don't play along at all.

I don't get how you figure you are being "jerked around" by credit organizations. You apply, they not knowing you from Adam check your FICO which is a snapshot based on a statistical formula to predict if you are a worthy risk or not. Once they conclude your risk they approve or disapprove. :shrug:

I have never had any "jerkig around". Payment dates are payment dates, interest rates are the published rates, take it or leave it.

If you elect to purposely not participate in the credit business and have a 0 FICO then that is your choice. You will have a harder time renting, buying, getting insurance, renting a video, and even gaining employment in some instances.

 

[Pete]

FICO Score Composition:

Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%

FICO is the Fair Issac Corporation and the Big 3 use this model for their FICO scores. The formula has stayed pretty steady. As for the rules and the like they stay pretty steady as well. It seems to be the opinions about the rules (and how to apply them) are what are all over the map.

Choosing to not participate in any of this is an option some have chosen. The result is a bit higher insurance rates but all in all it beats being jerked around by lending institutions, credit card companies, etc.. Hard to jack around the payment date, interest rate, billing cycle, etc, if you don't play along at all.

I know this. I want DETAILS. I want to see the formula, put my info in it and see how one thing affect the other.

 

[ProfMoneyWise]

I don't get how you figure you are being "jerked around" by credit organizations. You apply, they not knowing you from Adam check your FICO which is a snapshot based on a statistical formula to predict if you are a worthy risk or not. Once they conclude your risk they approve or disapprove. :shrug:

I have never had any "jerkig around". Payment dates are payment dates, interest rates are the published rates, take it or leave it.

If you elect to purposely not participate in the credit business and have a 0 FICO then that is your choice. You will have a harder time renting, buying, getting insurance, renting a video, and even gaining employment in some instances.

I rent, buy, have insurance, rent video's, am employed. I buy airline tickets, rent hotel rooms, cars and do everything anyone else does with a debit card. If I am making a purchase of any significance I use the "credit" side of the debit card and the policies and protections that come with a credit card are enacted. Never had a problem to date but if I do I will be the first to report it here.

I understand the assignment of interest rates. The higher the risk the higher the rate. Of late many are finding out they have become supposed risks as their rates have been increased considerably.

The jerking around I mention is the lenders have been purposely moving payment dates around with no notice. This results in missed payments (and associated fees). The companies have also been increasing the minimum payment amounts and interest rates. Even on accounts in good standing.

Appears to me your way works for you. I was just pointing out there is another way entirely and quite frankly there are some that need to go the no-debt/no-risk way as the other way is obviously to much for some to handle responsibly.

 

[ProfMoneyWise]

I know this. I want DETAILS. I want to see the formula, put my info in it and see how one thing affect the other.

Ah hah! Wondered what part of your question I was missing.

 

[Merlin99]

FICO Score Composition:

Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%

FICO is a "how am I at borrowing and paying" score. You close your accounts you eventually end up with a zero FICO score. A clean credit report but a zero FICO.

Millionaires who do not borrow money have zero FICO scores.

I know which camp I want to be in. Zero FICO, Clean Credit.

If I find a place will not do business with me because I do not have a FICO score I will call the local newspaper . . . and still take my business elsewhere.

If I have an applicant for employment who has clean credit but zero FICO and that applicant is competing with someone who has a high FICO. Hmmmmmmm, I like debt-free employees. They "want" to be at work not "have" to be at work.

The great FICO score has become way to much of a focus. No where in the score is being financially prepared and fully funded factored into the equation.

A lot of employers now look at that credit score, it's almost impossible to get a security clearance without a good score.

 

[vraiblonde]

I use my credit card for everything, from filling up the gas tank to groceries to my SMECO bill. I get points for everything I buy, which I can spend on all sorts of goodies. I also pay my balance in full each month.

So I get free stuff from my credit card company, and you guys who rack up interest charges and late fees are essentially paying for it.

Thanks!

 

[ProfMoneyWise]

A lot of employers now look at that credit score, it's almost impossible to get a security clearance without a good score.

Correct. Much debate about this very thing in many circles at present. Those with zero scores are stating same prior to submission of the application to explain up front they choose not to owe money to anyone but have a clean credit history.

Those whose scores are going downward as they are ridding themselves of debt are advised to do the same thing.

This applies to job applicants as well. Some companies are using the score as a discriminator. It is wise for applicants who owe no one to make this point known at application time.

What is ironic is financial problems have been at the root motivator of many who ultimately commit treason against the U.S.. Selling of information to get out of financial predicaments caused by spending money one does not have.

Yet the score that tracks this sort of thing is being viewed as a good thing.

The times they are a changing . . .

 

[Chasey_Lane]

So I get free stuff from my credit card company, and you guys who rack up interest charges and late fees are essentially paying for it.

I have this cool sea miles card that will earn me FREE cruises.