Posted by JPiper on March 19, 2001 at 13:17:53:
Equifax started a product today to provide consumers credit scores. Cost is 12.95. equifax.com
JPiper
Interesting FICO stats- Hard to believe! - Posted by SCook85
Posted by SCook85 on March 19, 2001 at 09:08:26:
In the latest issue of Paper Source, they give some information regarding the statistics of the general populations credit scores. Here they go.
Sixty percent of all borrowers have a credit score of 700+, so for everyone with a score of over 700 who believes that they are in the elite few, think again.
Only 13% of all borrowers have credit scores of less then 600.
I never did an analysis of my prospective buyers, but in the beginning of the year 2000 I pulled approximately 700 credit reports. I would estimate my ratios to have been as follows:
1% with scores of 700 or more
15% with scores of 600-699
70% with scores of 500-599
14% with scores of less then 500
Scores over 600 were so rare that I got excited if someone had over a 580. Turns out that I must have been dealing with the entire 13% of people with scores under 600.
I’d be interested in finding out how many of you had similar results to mine.
Happy Investing!
Steve
Re: Interesting FICO stats- Hard to believe! - Posted by Neil
Posted by Neil on April 08, 2001 at 22:52:03:
I managed a home security business several years ago and we pulled about 30 credit reports per day from equifax (same as myfico.com)
My experience is that there seemed to be an enormous cluster between around 550 to 600. I am amazed at the percentile rankings listed on the myfico site. They seem really high.
On a more personal note, I filed bankrupcy two years ago and one year ago my score was a whopping 493. As of last week it is 625. There were 17 true mistakes that I contested via equifax’s online investigation AND verbaly. (when you do an online investigation, it lists the items that you have to call to have investigated, the investigation that is initiated verbally is considered separate from the one that you initiate online, both are completed in about a month at which time they will send you corrected reports (one for each investigation). To my surprise ALL of them were promply corrected. There is so much information out there about how difficult it is to correct a mistake but I have to say that I had no trouble at all. Please Check your report for errors! Equifax will fix it quickly online. You dont have to write long drawn out letters you just call them.
Re: Interesting FICO stats- Hard to believe! - Posted by Dan
Posted by Dan on March 21, 2001 at 13:38:40:
At Equifax’s website, where they are now offering people the ability to see their own scores for $12.95 (as Ed mentioned below), they do indeed claim that 60% of U.S. consumers scores are 700 or higher. They claim that 40% are higher than 750! This is from Equifax themselves and it doesn’t refer to people who received loans, it just says “U.S. consumers.”
For all borrowers, or just the ones who got loans? - Posted by Monique
Posted by Monique on March 20, 2001 at 12:02:33:
Steve,
I’d be curious to know if the PaperSource’s data was for ALL borrowers, or just the ones who got loans. These scores are so high, I’m think this must be a subset of the larger population.
For instance, how could the FICO scores be so high given the rapidly increasing number of people declaring bankruptcy?
Monique
Re: Interesting FICO stats- Hard to believe! - Posted by WilliamGA
Posted by WilliamGA on March 20, 2001 at 08:20:22:
Steve,
I have only seen ONE score over 600 since I got my service and started running them last fall. Most have been in the low 500’s.
But then again, I am in Georgia. LOL
See you next week,
WilliamGA
If I Added Up My Last 4 Potential… - Posted by Vic
Posted by Vic on March 19, 2001 at 22:57:22:
…buyer’s total credit scores from all 3 bureaus combined, they wouldn’t equal 700. LOL
Vic
Interesting to see how they worked out - Posted by AnnNC
Posted by AnnNC on March 19, 2001 at 12:47:26:
OK, if most of your calls were in the 500-600 range, how did they ultimately turn out in keeping up with payments?Any stats or breakout on scores vs problems, or did you go with the next category 600-700? Ann
Re: I guess this means that 280 is bad…(NT) - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 19, 2001 at 12:20:30:
Re: Interesting FICO stats- Hard to believe! - Posted by JoeS
Posted by JoeS on March 19, 2001 at 12:11:56:
Steve: If you have 13% of them, I must have had the other 87! Statistics can and are juggled to fit the person or business paying for the statistics. I too ring a bell if a buyer has over 575! 700 must be for the local bank conventional buyers. I guess if I was looking for a house and my score was 750 I would not look to an investor, I would look with a realtor since I was already preaproved. Just my $0.02, great observation.
Re: Interesting FICO stats- Hard to believe! - Posted by Mark-NC
Posted by Mark-NC on March 19, 2001 at 11:57:43:
Steve,
There is no way that this is right. I have pulled hundreds of reports myself. In my experiance I might get one decent borower out of 5 credit pulls.
I was under the understanding that 75% of the population or more has had, or is having some type of credit problem. Dealing with the people I have dealt with it would even represent a higher figure.
There has got to be a mistake. Or the credit bureaus are publishing this misinformation for some type of propaganda to try and alleviate the pressure put on them from the general puplic trying to find out about their credit scores and how they work.
The way the scoring system is set up there are just too many perfect variables in the scoring system that have to be met to get that 700+ score and I can tell you right now that there is no way on earth that 60% of the population has met them.
I get a little riled up talking about the credit bureaus. I don’t believe Private companies like Equifax, Transunion and Experian should have this much control of our lives. These companies are Multi Billion Dollar organizations and that is with a capitol B. They make millions of dollars each year selling our information to potential creditors. For instance cross country bank paid over ten million dollars last year for the names of people with credit problems so they could promote their high interest rate cards. So you see it is very profitable for the bureaus to have people with problem credit reports.
I realize the syetem is set up to protect creditors but it is also set up to put big money in the credit bureaus and creditors pockets.
I mean, who decided that if you have derogatory information on your credit it is going to stay on your report for seven years? Why is it seven years? Did they do this to punish the the individual for the seven years or did they do this so the creditors can charge the individual more interest during this long seven year period?
Bad things happen to good people all the time. The problem with the credit scoring system is it’s all black and white with no excusses. If some one gets down on their luck and ends up with some problem credit they will most likley have to buy their credit back by paying the high interest rates and high down payments. It’s a risky situation for most trying to make these high payments and possibly falling behind again creating a vicious circle of credit problems again.
I realize that some people should or can not handle credit, that’s not who I am referring to. I am talking about the people that can handle credit but because of an incident or bad luck in they had a set back in their credit.
I also beleive there should be a course taught in high school before a student graduates on how to handle credit and what can happen to your life if your credit is ruined. It really bothers me to see the fact that 16 year olds can get credit cards now. They are setting these kids up to fail and when they do the credit bureaus and creditors are going to put money in their pockets in the process.
Sorry, I got off on a tangent here but I think the whole credit reporting sytem needs work and it bothers me to see how we are being controlled by it.
Here is some interesting information about scoring if anyone is interested at,
http://creditinfocenter.com/creditreports/scoring/crscore.shtml
Mark
Re: Interesting FICO stats- Hard to believe! - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 19, 2001 at 11:17:07:
I would say that it depends on what they mean by “borrowers”. If you sub-divide a category enough, then everyone can have a FICO of 700+.
Mark
Re: Hard to believe! - Posted by JPiper
Posted by JPiper on March 19, 2001 at 10:49:31:
Steve:
My scores are probably comparable to you. We practically have a parade over here if someone has a FICO over 600.
But I think this reflects my advertising. Let’s face it, when you run an ad that says “No Bank Qualifying” you tend to draw people with problems.
I would be interested in a statistic that showed the percentage of borrowers who borrow in the conventional or government type markets…versus the percentage in the subprime area. It would seem that the conventional would dwarf the subprime…and therefore would probably confirm the statistics from papersource. 60% over 700 though??? Hard to believe indeed.
JPiper
Re: Interesting FICO stats- Hard to believe! - Posted by Robert M. Campbell
Posted by Robert M. Campbell on March 19, 2001 at 10:35:38:
As a San Diego mortgage broker, I disagree with those national statistics. As an educated guess, I would say about 25% of my clients have FICO scores greater than 700. Maybe 50-60% are 620 to 700. It’s doesn’t take much to knock a person out of the 700+ credit range.
Robert M. Campbell
Re: Interesting FICO stats- Hard to believe! - Posted by Ed Garcia
Posted by Ed Garcia on March 19, 2001 at 09:48:58:
Steve,
Things aren’t always what they seem. I’m sure area has a lot to do with your findings. However I will agree with you, the national stats, doesn’t seem to be a reflection of my findings either. One thing I’m sure it could be is, that you’re solicitations or advertising, could be geared toward attracting the weaker buyer.
At any rate, thank you for sharing this tid-bit of information, and I look forward to seeing you at the convention.
Ed Garcia
You have to admit, though… - Posted by Adum
Posted by Adum on March 20, 2001 at 08:52:41:
it surely has lined your pockets! It also has put a little change in my pockets as well. The mobile home business is good here. But, being the true UGA Bulldog that I am, I have to take up for my great state when attacked. Especially from an ex-Volunteer! LOL… Keep up the great work.
Adum
I just saw a comedian talking about this… - Posted by Ben (NJ)
Posted by Ben (NJ) on March 19, 2001 at 16:20:51:
he said "why, if you are late paying your bills, does
the credit card company charge you MORE of what you
didn’t have TO BEGIN WITH !! LOL
Re: AMEN! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 19, 2001 at 12:12:45:
Mark, I couldn’t have said it better. On a tangent, allowing consumers to know their own FICOs has been a sore spot with me. I know the tides are turning, and there is legislation being introduced (in CA for one) to allow consumers access to their own credit scores.
I predict class action suits will follow, against Fair Isaac, when the general public learns what a strangle-hold their “computer algorithms” have on the industry. They’d better be prepared to disclose their models to a jury of consumers.
Stacy