The real issues with credit reports and fico scores...

[onefast99]

For those of you who have had medical collections, collections and small charge offs on your credit reports and are either buying or refinancing a home you will notice how a charge off or collection account will adversely affect your score by as much as 50 points. This is something that needs to be fixed now by the three credit reporting agencies, Equifax, Transunion and Experian.
Many collection companies send a notice to a consumer and it may look like an advertisement or a scam. Less than 30 days later when there is no response to the collection agency by the consumer either in writing or by phone or email the agency reports the account to the credit bureaus. If the collection account is disputed this will also cause a reduction in the Fico scores, that in itself is a huge issue.
The fact that the collection agencies have the ability to damage an individuals score without the proof it is actually owed is an issue that the Consumer Finance Protection Bureau should have looked at when it was first formed in 2011. Dodd Frank should have looked at this as well, but none of these two watch dog agencies want to actually do something that could help anyone.

[chadk66]

there needs to be a congressional overhaul of the credit reporting system. What I've seen happen to several people is when they get these small charge offs the debt is sold to a collection agency. That agency tries to collect and if it doesn't after a couple years they sell it to another collector. And on and on. Each time that happens it is a new strike on your credit like it was a new charge off. So you can't out live it as long as that is happening. If it ever stops, then the clock starts ticking in your favor. And I don't think debts under a certain amount should be on there either. Let's say under $100 bucks. Many of those are disputed debts or other issues where people just say F you I'm not paying you because you didn't perform to what you were expected to do. These are an insignificant issue in the overall scheme of things.

[Parkview_Pirate]

When it comes to debt disputes older than seven years, it's important to inform the collection agency to go pound sand, and admit to no liability. It's considered zombie debt, and is illegal to attempt to collect on it, but any willingness to pay up or settle will reset the clock.

I'd agree with the whole system needs to be revamped, if not scrapped. It's a system that allows for people to live far beyond their means, and charge offs don't magically disappear - they are paid for by the good consumers/credit risks, or by Uncle Sam when dropped from financial companies liabilities. It's just another racket which promotes modern financial slavery, and alleviates the financial companies from providing any value add.

There was a time before FICO when you had to go meet with the banker and make your case for car and home loans, and "credit" cards were more often charge accounts that had to be settled every month. Those days will eventually return, when the madness reaches its peak.

[barahona44]

QUOTE=Parkview_Pirate;2231176]When it comes to debt disputes older than seven years, it's important to inform the collection agency to go pound sand, and admit to no liability. It's considered zombie debt, and is illegal to attempt to collect on it, but any willingness to pay up or settle will reset the clock.

I'd agree with the whole system needs to be revamped, if not scrapped. It's a system that allows for people to live far beyond their means, and charge offs don't magically disappear - they are paid for by the good consumers/credit risks, or by Uncle Sam when dropped from financial companies liabilities. It's just another racket which promotes modern financial slavery, and alleviates the financial companies from providing any value add.

There was a time before FICO when you had to go meet with the banker and make your case for car and home loans, and "credit" cards were more often charge accounts that had to be settled every month. Those days will eventually return, when the madness reaches its peak.[/QUOTE]

When I was teaching,one of the teacher aides in the classroom next to mine went through a second bankruptcy (gotta be related to Trump :)).One of the first things she and her husband did after the bankruptcy was go out and lease new cars.

One problem is that since these are matters of public record and you are perceived to have a clean slate credit card companies, vehicle leasing outfits, etc bombard these ex-debtors with credit card and lease /sale offers.
And too many think this time it'll be different.

[Lemon Drop Husker]

For those of you who have had medical collections, collections and small charge offs on your credit reports and are either buying or refinancing a home you will notice how a charge off or collection account will adversely affect your score by as much as 50 points. This is something that needs to be fixed now by the three credit reporting agencies, Equifax, Transunion and Experian.
Many collection companies send a notice to a consumer and it may look like an advertisement or a scam. Less than 30 days later when there is no response to the collection agency by the consumer either in writing or by phone or email the agency reports the account to the credit bureaus. If the collection account is disputed this will also cause a reduction in the Fico scores, that in itself is a huge issue.
The fact that the collection agencies have the ability to damage an individuals score without the proof it is actually owed is an issue that the Consumer Finance Protection Bureau should have looked at when it was first formed in 2011. Dodd Frank should have looked at this as well, but none of these two watch dog agencies want to actually do something that could help anyone.

Completely false on all accounts.

Collection agencies rarely report to Credit Bureaus. Once an account becomes a "collection", and then sold off to a collection agency, it is bad debt no matter how you want to name it.

Most collection agencies don't even pull credit bureau reports as they are old news anyway. If you are looking to track down somebody that is likely 6 months or more past due on their obligation, a 3 month old (or more) report isn't going to help you. Collection agencies also aren't in the game of granting future credit, so their need for reporting or obtaining credit information on "good" customers is of little use to them.

FICO is all but one of over a hundred Credit Scores that are out there. Each and every one of the four (yes, there are 4 credit reporting agencies, most people don't know about Innovis) has their own individual scoring systems. Then you have 3rd party agencies that take in the reporting of the credit bureaus and formulate their own scoring systems. You then have credit scoring software systems that almost all large financial systems use to score people as to whether they are a worthy credit risk or not. FICO, in a large sense, is rather irrelevant other than giving one a small sense of their credit worthiness.

Credit is pretty simple. Don't borrow what you can't afford. When you sign your name on the line that is dotted, then keep your promise that you'll repay the debt that you owe.

[onefast99]

QUOTE=Parkview_Pirate;2231176]When it comes to debt disputes older than seven years, it's important to inform the collection agency to go pound sand, and admit to no liability. It's considered zombie debt, and is illegal to attempt to collect on it, but any willingness to pay up or settle will reset the clock.

I'd agree with the whole system needs to be revamped, if not scrapped. It's a system that allows for people to live far beyond their means, and charge offs don't magically disappear - they are paid for by the good consumers/credit risks, or by Uncle Sam when dropped from financial companies liabilities. It's just another racket which promotes modern financial slavery, and alleviates the financial companies from providing any value add.

There was a time before FICO when you had to go meet with the banker and make your case for car and home loans, and "credit" cards were more often charge accounts that had to be settled every month. Those days will eventually return, when the madness reaches its peak.

When I was teaching,one of the teacher aides in the classroom next to mine went through a second bankruptcy (gotta be related to Trump :)).One of the first things she and her husband did after the bankruptcy was go out and lease new cars.

One problem is that since these are matters of public record and you are perceived to have a clean slate credit card companies, vehicle leasing outfits, etc bombard these ex-debtors with credit card and lease /sale offers.
And too many think this time it'll be different.[/QUOTE]
The auto industry will always find a way to put someone in a car. A local dealer near me states in his TV ad "out of bankruptcy one day see me I will get you in a car today".
The mortgage industry has tightened up on any BKs where it is 4 years to get a loan from a GSE, Fannie or Freddie or FHA. Some lenders may do an FHA after 2 years out of a BK. Also the mortgage industry has been requiring reserves, something that should have been done during the sub-prime meltdown in 2008,

[barahona44]

Credit is pretty simple. Don't borrow what you can't afford. When you sign your name on the line that is dotted, then keep your promise that you'll repay the debt that you owe.

Why that attitude is downright UN-AMERICAN. :)

[Lemon Drop Husker]

Why that attitude is downright UN-AMERICAN. :)

Ha.:pound:

Used to be a man's word was as good as gold. Now his signed name on a legal contract is worth less than the 1 cent paper it is upon. :pout:

[onefast99]

Completely false on all accounts.

Collection agencies rarely report to Credit Bureaus. Once an account becomes a "collection", and then sold off to a collection agency, it is bad debt no matter how you want to name it.

Most collection agencies don't even pull credit bureau reports as they are old news anyway. If you are looking to track down somebody that is likely 6 months or more past due on their obligation, a 3 month old (or more) report isn't going to help you. Collection agencies also aren't in the game of granting future credit, so their need for reporting or obtaining credit information on "good" customers is of little use to them.

FICO is all but one of over a hundred Credit Scores that are out there. Each and every one of the four (yes, there are 4 credit reporting agencies, most people don't know about Innovis) has their own individual scoring systems. Then you have 3rd party agencies that take in the reporting of the credit bureaus and formulate their own scoring systems. You then have credit scoring software systems that almost all large financial systems use to score people as to whether they are a worthy credit risk or not. FICO, in a large sense, is rather irrelevant other than giving one a small sense of their credit worthiness.

Credit is pretty simple. Don't borrow what you can't afford. When you sign your name on the line that is dotted, then keep your promise that you'll repay the debt that you owe.
Innovis is also a seller of information to creditors, they are used by many mortgage companies to gather information, they do not have any scoring systems that you are eluding to as there are only three recognized agencies and they are Equifax, Transunion and Experian. Corelogic/Credco is also similar to Innovis but do not sell data to creditors.