Credit score? churning?
Sep 14, 2008, 1:57 pm
#17
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
Itsme: you have provided useful info before, so I assume you got out of bed on the wrong side (metaphorically speaking) and are just a little testy right now. 
As far as Coke goes, you can buy essentially the same product (with perhaps less effective ads) from Pepsi, Sam's Club etc. Folks tell me Sam's is just about the same as Coke. I guess Wal-Mart figured out the "secret."
As to FICO, it is true that Fair I. claims its formula is top secret, but that's how they make their money, selling the "secret." There are lots of places on the web to get quasi FICO scores which are close enough. Check out the three bureau sites for starters. I think we all, just from looking at FT and Fat Wallet have a pretty good idea of what goes into a credit score. Pay bills on time, keep old accts open, keep credit line use down, etc. Credit scoring is no mystery, but, like a lot of the rest of the financial services, there is a lot of effort put into cloaking it in a heavy haze.
As far as Coke goes, you can buy essentially the same product (with perhaps less effective ads) from Pepsi, Sam's Club etc. Folks tell me Sam's is just about the same as Coke. I guess Wal-Mart figured out the "secret."
As to FICO, it is true that Fair I. claims its formula is top secret, but that's how they make their money, selling the "secret." There are lots of places on the web to get quasi FICO scores which are close enough. Check out the three bureau sites for starters. I think we all, just from looking at FT and Fat Wallet have a pretty good idea of what goes into a credit score. Pay bills on time, keep old accts open, keep credit line use down, etc. Credit scoring is no mystery, but, like a lot of the rest of the financial services, there is a lot of effort put into cloaking it in a heavy haze.
BTW, it seems I was mistaken when I said that Fair Isaacs doesn't sell its score directly to individuals.
Sep 14, 2008, 9:47 pm
#18
In memoriam
Join Date: Jan 2006
Posts: 4,020
Guess I missed where I agree that Coke's ingredients are a secret. In fact, they are not. Take a look at snopes.com or Wikipedia on the Coke formula.
If you want to believe that FI's stuff is a secret, well, you are, of course, free to believe that, too. @:-)
If you want to believe that FI's stuff is a secret, well, you are, of course, free to believe that, too. @:-)
Sep 15, 2008, 8:02 am
#19
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
The Wikipedia entry says in pertinent part: "The exact formula of Coca-Cola is a famous trade secret. The original copy of the formula is held in SunTrust Bank's main vault in Atlanta...A popular myth states that only two executives have access to the formula, with each executive having only half the formula.[33] The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process.[34]" Isn't a secret because two people know it?
Sep 15, 2008, 8:13 am
#20
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
Given a dozen or so middling credit reports, do you think the average difference between your guesstimate FICO and the real FICO score would be < "x," and what would that "x" be? 10 points? 25 points? 50 points? I would bet $$$ that on average you would miss by > 25 points. Would plus or minus 50 be what you mean by "close enough for some"?
Sep 15, 2008, 12:14 pm
#21
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,760
I think that I, tev9999 and sdsearch have answered that one. If you still think that you can take someone's credit report and from what is "known" or "knowable" about FICO scores come very close to guessing their FICO score, then would you bet a substantial $$$ on how well you would do?
Given a dozen or so middling credit reports, do you think the average difference between your guesstimate FICO and the real FICO score would be < "x," and what would that "x" be? 10 points? 25 points? 50 points? I would bet $$$ that on average you would miss by > 25 points. Would plus or minus 50 be what you mean by "close enough for some"?
Given a dozen or so middling credit reports, do you think the average difference between your guesstimate FICO and the real FICO score would be < "x," and what would that "x" be? 10 points? 25 points? 50 points? I would bet $$$ that on average you would miss by > 25 points. Would plus or minus 50 be what you mean by "close enough for some"?
In my experiences, FICO is NOT the be all, end all, determinant factor whether you get approval or not. Many other factors come into play, including your history with the credit grantor, to say the least. If FICO and credit reports are the determinants, then I fail to understand why some issuers would grant credit at 2 days turnaround time while other issuers would demand many more info and yet still deny credit, in cases I have observed, on same applicant, thus same public credit profiles based on the 3 reporting bureau.