Uncommon Sense

May 8, 2019

The Bullshit Scam that Are FICO Scores

We have all been told that FICO credit assessment scores are important. There are even services that will help you improve your FICO score, so you will have more credit opportunities.

It is all bullshit and a scam on the public.

I am a responsible person (IMHO of course). I pay my bills on time with rare exceptions, usually based upon forgetfulness. In any case, I have run up quite a bit of credit card debt, not unlike many Americans. But I was paying them down assiduously. I paid off one card and closed the account, a sign of a good faith borrower, I thought . . . and then my FICO score went . . . down. WTF? I still have plenty of accounts, but if I close one I am less credit worthy? WTF? How does that make sense?

I then paid off a car loan! Woo hoo, I paid off my car and I owned it free and clear . . . and my FICO score went . . . down! Again, WTF?

All of the signs of being an honorable borrower cause my credit score to be decreased?! So, I kept my head down and just paid down what I owed. I paid more than the minimum payment on my credit cards every month, and my FICO score climbed up to 700 and beyond! I was so proud!

But, I wasn’t making enough progress on reducing my credit card dept, so I applied to my Savings and Loan for a signature loan (that had a lower interest rate than my credit cards) and paid off my all of my credit cards (Balance = $0)! Note that I replaced my CC debt with an unsecured loan debt of the exact same amount in this process, so my indebtedness did not change even $1. So what happened?

My FICO score soared from ca. 700 to ca. 800! I was now much more credit worthy than I was before, even though my indebtedness was exactly the same! Also, I did not prove my ability to pay off loaned funds at all! But, now I was an “excellent” credit risk where before I was only a “good” credit risk.

Ironically, my S&L checked my FICO score to assess whether I was worthy of the signature loan (aka no collateral loan) when they processed my loan application.

So, what do I conclude from all of this?

I conclude we have been conned. FICO scores (created by a private credit scoring concern . . . I wonder what their corporate values are?) are part of an institutional effort to make sure we are indebted to the system to the max. They are designed to make sure that we can borrow much more than we are prepared to repay in any one year or even one decade. They are a tool of the lending institutions and the financial elites who are now running the whole fucking show!

That Donald Trump is one of their minions doesn’t help one fucking bit. I feel I want to go around the world apologizing to people in all of the countries of the planet for electing the abomination who is Donald Trump and for supporting an American system that oppresses so many people, including our own.

 

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