Comments on: Effect of FICO Credit Scores on Loan Interest Rates http://www.fivecentnickel.com/2009/12/30/effect-of-fico-credit-scores-on-loan-interest-rates/ personal finance tips, tricks, and commentary Mon, 13 Feb 2012 18:22:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Nickel http://www.fivecentnickel.com/2009/12/30/effect-of-fico-credit-scores-on-loan-interest-rates/comment-page-1/#comment-137630 Nickel Thu, 31 Dec 2009 07:32:13 +0000 http://www.fivecentnickel.com/?p=3744#comment-137630 Molly: I've signed up for and canceled MyFICO without any problems in the past. Yes, if you fail to cancel, you will get charged, but canceling was not (in my case, anyway) difficult at all. As for your FICO score being "worthless data," I disagree. Sure, there are multiple metrics out there, but FICO is the best known, and one of the most commonly used. It sucks that you have to jump through hoops to get it, but that's the world in which we live. Molly: I’ve signed up for and canceled MyFICO without any problems in the past. Yes, if you fail to cancel, you will get charged, but canceling was not (in my case, anyway) difficult at all.

As for your FICO score being “worthless data,” I disagree. Sure, there are multiple metrics out there, but FICO is the best known, and one of the most commonly used. It sucks that you have to jump through hoops to get it, but that’s the world in which we live.

]]> By: Michael Harr @ Wealth...Uncomplicated http://www.fivecentnickel.com/2009/12/30/effect-of-fico-credit-scores-on-loan-interest-rates/comment-page-1/#comment-137628 Michael Harr @ Wealth...Uncomplicated Thu, 31 Dec 2009 06:43:30 +0000 http://www.fivecentnickel.com/?p=3744#comment-137628 Molly makes a great point about 'the' credit score. Each lender uses its own scoring method to formulate its rate tiers and you'll sometimes hear that a FICO score of X 'may' qualify a borrower for the best rate of Y%. Operative word, of course, being 'may'. Unfortunately, numbers like Nickel has presented are about the only thing to go on in trying to estimate the rate one might receive on a loan. As to MyFICO being a scam, I wouldn't go that far. MyFICO's revenue model is much like a fitness center. They're providing a convenience service where what you need is (in this case, to review your credit scores and report) in one place and hoping you forget or neglect to cancel. It's the old sleeping dog trick we've seen used in countless instances. Speaking of which, how about those banks that create a new, 'better' savings account only to lower the rates on existing accounts and account holders? Molly makes a great point about ‘the’ credit score. Each lender uses its own scoring method to formulate its rate tiers and you’ll sometimes hear that a FICO score of X ‘may’ qualify a borrower for the best rate of Y%. Operative word, of course, being ‘may’. Unfortunately, numbers like Nickel has presented are about the only thing to go on in trying to estimate the rate one might receive on a loan.

As to MyFICO being a scam, I wouldn’t go that far. MyFICO’s revenue model is much like a fitness center. They’re providing a convenience service where what you need is (in this case, to review your credit scores and report) in one place and hoping you forget or neglect to cancel. It’s the old sleeping dog trick we’ve seen used in countless instances.

Speaking of which, how about those banks that create a new, ‘better’ savings account only to lower the rates on existing accounts and account holders?

]]> By: Molly http://www.fivecentnickel.com/2009/12/30/effect-of-fico-credit-scores-on-loan-interest-rates/comment-page-1/#comment-137622 Molly Thu, 31 Dec 2009 04:19:01 +0000 http://www.fivecentnickel.com/?p=3744#comment-137622 Why are you promoting myfico when its a scam? Your FICO is not necessarily "the" credit score banks consider, and in order to get your "free" trial you end up signing up for a service that is nearly impossible to cancel, requiring you to fight for your money back. If you're stubborn, you will eventually get your money back, but why go through all of that for worthless data? And why, again, are you promoting this? Why are you promoting myfico when its a scam? Your FICO is not necessarily “the” credit score banks consider, and in order to get your “free” trial you end up signing up for a service that is nearly impossible to cancel, requiring you to fight for your money back. If you’re stubborn, you will eventually get your money back, but why go through all of that for worthless data? And why, again, are you promoting this?

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