How Much Is A Credit Score (FICO) Worth?

$8 only.You guys make this decision is worth $800.

~Marty~

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Posted by Marty on May 16, 2008, 6:08 pm

Pay the $7.95.You will know for sure all your financial decisions were
right for all the years.Your FICO score is what creditors really look
at.If your FICO is good,I doubt they even bother going through your
credit report.Do it for "peace of mind"! It is a no brainer.

~Marty~

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Posted by on May 16, 2008, 6:08 pm

The FICO is $7.95

> from Equifax. My only concern is that we haven't had a loan since

> 1995 which I paid off in a few months. We are planning on buying

> a winter home when my wife retires in four years. With a clean

> history is the FICO useful now? Ever?

If you NEVER use credit then you can igore your FICO. FICO is a
pretty good guess of how likely you are to pay back a loan. If the
lender is confident you will pay back the loan then he only needs to
charge you for the time value of money and a modest profit. If there
is significant question that you will pay back the loan then he needs
to charge for loss of principle even if it is only partial and spread
over many loans. This is going to cost you more money. If it is
likely you will not pay back, he has to charge you a lot.
Knowledge is power. If you don't know your FICO and the loan officer
does, he can bluff you into accepting terms higher than you need to.
Car dealers do this (packing) all the time. Practically the first
question a lender will have will be about your FICO. It only makes
sense that you know what it is.
Sounds like you have lived a decent life. Why not get the benefit?

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Posted by John A. Weeks III on May 16, 2008, 6:31 pm

> I just took advantage of a Massachusetts law that allows a free

> credit report once a year. Our report is clean and accurate but

> they do not include the credit score, FICO. The FICO is $7.95

> from Equifax. My only concern is that we haven't had a loan since

> 1995 which I paid off in a few months. We are planning on buying

> a winter home when my wife retires in four years. With a clean

> history is the FICO useful now? Ever?

Don't worry about FICO. All that tells a lender is how profitable
you will be, so they know how badly they can take advantage of you.
You have been living just fine for years without knowing your FICO
score, so don't waste the $8 to find out. It doesn't matter. When
you go for a loan, you may find lenders that worship at the god of
FICO. And then there are better lenders that do manual underwriting.
Those are the ones that you want to deal with. They will evaluate
your history and give you a rate based on how well you have behaved.

-john-

--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
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Posted by joetaxpayer on May 16, 2008, 7:44 pm

John A. Weeks III wrote:

> Don't worry about FICO. All that tells a lender is how profitable

> you will be, so they know how badly they can take advantage of you.

> You have been living just fine for years without knowing your FICO

> score, so don't waste the $8 to find out. It doesn't matter. When

> you go for a loan, you may find lenders that worship at the god of

> FICO. And then there are better lenders that do manual underwriting.

> Those are the ones that you want to deal with. They will evaluate

> your history and give you a rate based on how well you have behaved.

Can you actually ask a bank if they are FICO-driven or if they'll look
strictly at your record (credit report, income, etc.) only?
I find this response curious, similar to the reply to the refinancing OP
who someone told not to bother calling the bank holding the current
mortgage. $8 seems a small sum to waste, the resulting knowledge may be
pretty valuable.
Joe

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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
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