Interesting -you have at least 8 different credit scores

[sdrjeolsen]

I ran across this interesting article about all the different credit scores that are kept on each one of us. I had no idea. they use that data in some interesting ways, kinda big brother-ish.

After reading it, I agree with this guy:
"Those guys at NASA have nothing on the Ph.D.s who work for credit card companies," Ulzheimer said. "They're Mensa-level smart, and they are very, very sophisticated in the ways they use credit data."

http://articles.moneycentral.msn.com...ndersKeep.aspx

[Nishu]

The FICO score? Yeah, it's a little icky sounding, but at the same time if you know what they base their scores on you can manipulate your accounts to improve your score when you're really not changing your creditworthiness. I sort of like it because when it comes to credit I really had no idea where we stood before I found out my husband's number.

[Nishu]

As for the other scores, I had no idea they existed. I don't plan on using credit until we get a mortgage though, so I'm not too concerned with it. It is really kinda freaky that they keep all those numbers on you, but it's kinda part of the game, you know? It's another reason I don't like to use credit anymore. The feeling of being summed up by my credit history just makes me a little ill.

[sdrjeolsen]

No, I seriously mean there are at least 8 different things they track and issue scores for, in addition to the FICO:
1. Credit-risk scores (the FICO score)
2. Response score
3. Application score
4. Bankruptcy score
5. Revenue score
6. Attrition-risk score
7. Behavior score
8. Transaction score
9. Collection score

One scoring model sold to lenders, the TRIAD Transaction Score created by Fair Isaac, takes into account credit risk, attrition, potential revenue and patterns in the user's charging behavior that might indicate higher or lower risk.

The scoring formula may decide you've gone from Stable Family Guy to Desperate Unemployed Guy and flag the issuer that you've become a higher-risk customer.

[sdrjeolsen]

sorry, Nishu, I didn't see your second post when I posted. You are right, itis part of the game. But, its just weird to know they track it like a science.

[mikandmari]

"The scoring formula may decide you've gone from Stable Family Guy to Desperate Unemployed Guy and flag the issuer that you've become a higher-risk customer."

I wonder if they have a label for the people like us: Tightwads: they only use their card for groceries, gas, and the thrift store (for the points) then they pay them in full each month We make no profit from these cheapskates!

This was a really interesting article. Thanks for posting it!

[sdrjeolsen]

"The scoring formula may decide you've gone from Stable Family Guy to Desperate Unemployed Guy and flag the issuer that you've become a higher-risk customer."

I wonder if they have a label for the people like us: Tightwads: they only use their card for groceries, gas, and the thrift store (for the points) then they pay them in full each month We make no profit from these cheapskates!

ROFL!!

We probably have a separate score just for us! ) If so, proud of it, lol