My Credit Scores... Huh?

[noppenbd]

Are you sure that the scores you are getting from the 3 companies are actually FICO scores? I know they also have their own scoring system which doesn't totally match the FICO scoring system. That could explain the difference.

From what I understand, disneysteve is correct. The Fair Isaac company that created the FICO score owns the rights to it and I think they are the only ones who can give you the "FICO score". However, all the credit bureaus have created their own "credit scores" which are not the same as the true FICO.

Also, have you considered freezing your credit? It costs at most $10 per bureau (less depending on your state, e.g Maryland residents pay $5 per) and prevents anyone from opening new accounts in your name (credit, loan, cell phone, cable/satellite). It is a bit of a pain if you do have to open a new account/credit card, but you can temporarily thaw the bureau that is going to be used for a $10 fee. Seems like a cheaper deal than paying $7.50 a month. Let me know if you want more info, I can provide links to put the freeze in place.

[cicy33]

What I would like to know is when will these companies ever be held liable for simply placing accounts willy nilly. This happened to my husband, common name. at one point he had 6 accounts for one company on his report 5 times. All 5 were different companies, but each one had 6 reports of bad credit. Now, come on, do you really think this guy actually has 6 citi bank cards, 6 capital one cards, etc. We paid once to have it cleaned, then when it happened again! I contacted a lawyer, who told me that as long as they remove it they are not liable. Even if more comes back on. I just have to keep disputing it, oh and I can put a disclaimer on the report. Like that is going to help! The problem is that these credit company people need to be held to a standard just like everyone else. and there should be consequences for their actions when they are doing something that literally affects your life! and I don't mean opening new lines of credit, not interested in that. but my insurance agency sent a letter recently stating that the new premiums would be partly based upon credit report. That is not fair. I have not had a claim, I pay my bill.

[Seeker]

What I would like to know is when will these companies ever be held liable for simply placing accounts willy nilly. This happened to my husband, common name. at one point he had 6 accounts for one company on his report 5 times. All 5 were different companies, but each one had 6 reports of bad credit. Now, come on, do you really think this guy actually has 6 citi bank cards, 6 capital one cards, etc. We paid once to have it cleaned, then when it happened again! I contacted a lawyer, who told me that as long as they remove it they are not liable. Even if more comes back on. I just have to keep disputing it, oh and I can put a disclaimer on the report. Like that is going to help! The problem is that these credit company people need to be held to a standard just like everyone else. and there should be consequences for their actions when they are doing something that literally affects your life! and I don't mean opening new lines of credit, not interested in that. but my insurance agency sent a letter recently stating that the new premiums would be partly based upon credit report. That is not fair. I have not had a claim, I pay my bill.

I believe that you can do this:

http://www.advcredit.com/linked_docs/security_freeze.pdf

But check with your lawyer to confirm that it will also keep the credit card company(ies) that you currently use, from adding a second, third, etc account to your security freeze.

And also be aware that when you do need to get a loan or "unfreeze" your account, you will have to pre-plan and submit a form (which takes time to process etc).

[noppenbd]

I believe that you can do this:

http://www.advcredit.com/linked_docs/security_freeze.pdf

That PDF is outdated; it says residents of certain states can freeze their credit. New provisions allow anyone in the US to freeze their credit. Costs vary by state though. See this link:

clarkhoward.com: Topics

[cicy33]

I believe that you can do this:

http://www.advcredit.com/linked_docs/security_freeze.pdf

But check with your lawyer to confirm that it will also keep the credit card company(ies) that you currently use, from adding a second, third, etc account to your security freeze.

And also be aware that when you do need to get a loan or "unfreeze" your account, you will have to pre-plan and submit a form (which takes time to process etc).

This is exactly my point. Why should I have to do that? I don't want to have to freeze my account and that is not the problem. Even if the account is frozen they can still add the accounts. Freezing only prevents new ones from being created. The ones they put on my husbands account were ones we did not even have! We have never had a citibank account EVER. the capital one he did and I even called the company and verified that we were not the owners of these accounts. He had closed his years ago. The lawyer I spoke with told me that there is nothing legal I can do. As long as they remove it when I dispute it that is all they have to do. Doesn't matter that they keep putting it back on.

[maat55]

First- my score is higher than yours, did I win anything?
Second my wife's score is lower than yours- did you win anything?

Credit scores only matter if you need to tap credit. You got dinged a few points because you probably had mass inquiries when you refinanced, and over time (6 months) you should see scores rise.

I have not checked my credit since we refinanced last spring. I would not worry about identity theft unless you are using credit quite a bit (like using your cards everyday, or purchasing things online).

I would worry more about cash flow and household budget, and then worry more about saving enough, then worry more about interest rates on mortgage before I worried everyday about a credit score.

If you have a credit score of 775 with little savings and I have $500,000 in the bank, but a score of 650, which situation is better? If I had to take some credit risks to get the 500k, then the risks are worth the lower score.

The risks taken might be not using credit at all.

I knew you were a closet DR fan.

[jIM_Ohio]

From what I understand, disneysteve is correct. The Fair Isaac company that created the FICO score owns the rights to it and I think they are the only ones who can give you the "FICO score". However, all the credit bureaus have created their own "credit scores" which are not the same as the true FICO.

Also, have you considered freezing your credit? It costs at most $10 per bureau (less depending on your state, e.g Maryland residents pay $5 per) and prevents anyone from opening new accounts in your name (credit, loan, cell phone, cable/satellite). It is a bit of a pain if you do have to open a new account/credit card, but you can temporarily thaw the bureau that is going to be used for a $10 fee. Seems like a cheaper deal than paying $7.50 a month. Let me know if you want more info, I can provide links to put the freeze in place.

Please post the links. For $30 (is that one time or per year?) it seems worth the cost.

Would this cause problems if I opened a new investment or brokerage account, or only credit accounts?

[jIM_Ohio]

I knew you were a closet DR fan.

nothing in that post had anything to do with DR

[noppenbd]

Please post the links. For $30 (is that one time or per year?) it seems worth the cost.

Would this cause problems if I opened a new investment or brokerage account, or only credit accounts?

Here is a link that gives links to the individual bureaus' info pages, as well as form letters you can use for each bureau.

clarkhoward.com: Topics

Most common cost is $10 per bureau for the initial freeze and $10 for each temporary or permanent thaw (states can set their own lower prices). So for an individual the cost would be a one-time $30 hit. Usually opening store credit, utility account, or savings account requires at most 1 temporary thaw ($10 cost). The store, bank, or utility should be able to provide the bureau they use. Thawing is very easy now and should be almost instantaneous.

My credit has been frozen for 3 months and I was able to open both a Vanguard acct and USAA brokerage with no problem without thawing.

[vsjhoc]

And also be aware that when you do need to get a loan or "unfreeze" your account, you will have to pre-plan and submit a form (which takes time to process etc).

You can unfreeze (temporarily or permanently) by making a phone call to each credit bureau. Two of them (TransUnion and Equifax, I think) will do it instantly. The other (Experian) makes you wait 3 business days.

[noppenbd]

The other (Experian) makes you wait 3 business days.

I think this depends on the state as well. In Maryland starting Jan 2009 the thaw has to be effective within 15 minutes.

[MoneyAdvice]

re:Credit Scores

It is better to plan for our future now and avoid worrying later in life.Everything boils down to one thing in common,Planning.Proper planning can do wonders.Be it credit repairs or anything for that matter.