My FICO score is lowered because of lack of debt.

[Bruce_T_Laney]

I just happened to look at my FICO score and noticed it had dropped. The reason provided was the following:

FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person's credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans.

So if I wanted to make my FICO score higher, I could improve it by running up a bunch of debt. That's a very interesting system they have there.

It is.

The more debt the more loans.

 

[Polishprince]

I just happened to look at my FICO score and noticed it had dropped. The reason provided was the following:

FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person's credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans.

So if I wanted to make my FICO score higher, I could improve it by running up a bunch of debt. That's a very interesting system they have there.

If you don't plan on borrowing more money any time soon, why do you care what your FICO score is?

Because your score can affect many things. Getting a job, insurance, a lease...........

Fair enough. But I think if someone has no past due debts or other real potential problems, it probably doesn't make that much of a diff if their FICO is 755 or 805.

 

[MAGAman]

I just happened to look at my FICO score and noticed it had dropped. The reason provided was the following:

FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person's credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans.

So if I wanted to make my FICO score higher, I could improve it by running up a bunch of debt. That's a very interesting system they have there.

Ain't that some weird shit?

Of course the reason is that FICO doesn't measure your credit worthiness. It measured how much $ can be made by loaning you $.

 

[pknopp]

I just happened to look at my FICO score and noticed it had dropped. The reason provided was the following:

FICO® Scores consider recent non-mortgage installment loans (such as auto or student loans) information on a person's credit report. Your score was impacted because your credit report shows no recent non-mortgage installment loans or insufficient recent information about your loans.

So if I wanted to make my FICO score higher, I could improve it by running up a bunch of debt. That's a very interesting system they have there.

If you don't plan on borrowing more money any time soon, why do you care what your FICO score is?

Because your score can affect many things. Getting a job, insurance, a lease...........

Fair enough. But I think if someone has no past due debts or other real potential problems, it probably doesn't make that much of a diff if their FICO is 755 or 805.

It does not. I think the bigger point is the system is designed for people to take on more and more debt.

That should not be the goal for a high score. I get knocked down because I pay my card off, I've paid off my home and cars.

 

[Circe]

I have decades of credit history. As I said with no recent activity of any kind related to debt, my score suddenly dropped. No negative credit history, no debt, FICO score drops. Again I don't care I am pointing out what seems to be backwards logic.

Yeah, I haven't had any debt (not the house, no debt at all) for 20 years. I don't dare even LOOK at my credit score, but it doesn't matter, of course. We don't need to borrow. People: get out of debt. Money is better.

 

[Circe]

It does not. I think the bigger point is the system is designed for people to take on more and more debt.

That should not be the goal for a high score. I get knocked down because I pay my card off, I've paid off my home and cars.

Sure. You aren't playing the game, more and more debt up to your capacity to repay regularly. They don't WANT you OUT of debt, they want you maximized in debt.

This is a bad system for the individual. Okay for the banks, though.

 

[Admiral Rockwell Tory]

That's because it's a system invented by idiots. Just keep paying cash and don't be suckered into assuming debt over some number scam as cheesy as FICO. None of the people who ever use that number are honest people anyway, they're con artists and embezzlers and fraudsters, which is why the Govt. have been bailing them all out over and over and over and over again for some 300 + years.

I don't think you know what a FICO score is!

 

[Admiral Rockwell Tory]

Ain't that some weird shit?

Of course the reason is that FICO doesn't measure your credit worthiness. It measured how much $ can be made by loaning you $.

Wrong!

 

[Woodznutz]

I don't, the only reason I started the thread was to point out what seems to be backwards logic. Lowering a FICO score because of no recent debt payments. I can't believe starting up a bunch of new credit lines would raise the score. Who knows maybe it would!

Those who don't use credit are called "deadbeats". I'm a deadbeat with a FICO score of 830.