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matrixpatriot

Test on a Curve: Credit Crunch & Future Trends

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This isn't a question that can be black/white factually answered at this point in time but I'd like to know your thoughts on the subject.

In regards to FICO scores and credit histories....if a majority of Americans have tanking credit and mortgages wouldn't it stand to reason that within a few years the way credit scores are tabulated and credit histories reviewed will be bound to change?

For example, if a teacher gives an important test and 90% of the class fails - doesn't the teacher then mark the test on a curve or give a completely new test ?

If Americans, in the majority, fail the credit test or have overall lousy credit histories then won't they start to compare the histories and the scores to each other producing a new type of "average American"?

If they don't lower the credit standards and become more forgiving of debt, based on all this new bad debt, the banks and credit card agencies are going to lose an entire spectrum of customers.

Your thoughts?

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I thought that was what Fiko was doing. They have announced changes.

Also the CRA's are jealous of their making money so they are trying to lure business away with the new Vantage System.

Fiko wants to build a better mousetrap for its coustomers. The CRA's want in on the action.

So my feeling are the algorithms constantly change one way or another just as our lifestyles and buying habits.

As long as consumers educate themselves as to what is going on they do have a prayer. :lol:xdancex

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Well about 2 weeks ago I got a credit card offer from First National Credit Card - www.firstnational.com

They want people to transfer their debt from other credit cards for a .....get this....1.99% FIXED FOR LIFE APR on balance transfers.

Of course there are a ton of asterisks and qualifications and I'm not immediately inclined to trust this offer.......but......

the fact remains is that they are making the offer!

This signals to me that the vipers are in the process of eating their own.

The credit card companies are fighting with each other for scraps -

they'd rather have some of your debt, a piece of your debt, and be the last one holding your debt at 1.99 fixed for life than have everyone simply default and take their chances or their lumps.

Has anyone else seen this offer or a similar offer?

It's a red flag to me that the credit card companies are in more trouble than they might like to admit.

It's bizarro world.

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I doubt it. If this trend continues it seems that for the average American, access to credit, mortgages, and higher education, will become an option only for the affluent

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The economy is cyclical. This is a market correction because everyone went hog wild on borrowing because of lower interest rates. This is market forces at work. Give it a bit and it will change.

BTW- Search "score cards" - FICO already grades on a curve. That is how someone with a BK can have a higher score than a person with no negatives.

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