Credit score inquiries, ”less than five points” Wall Street Journal takes fewer words to describe effect of inquiries than even FICO score company Fair Isaac

TO: Annamaria Andriotis
CC: Jennifer Openshaw, Maria Lamagna, Brian Kelly, Elisabeth Hershman, Fair Isaac, Elizabeth Warren, Oscar Suris
FROM: Greg Fisher
DATE: Wed, Sep 21, 2016 at 2:22 PM
SUBJECT: false information, Murdoch, Wall Street Journal, credit score, inquiries, 1,497 #1609aa

I am with the media, I am on a deadline, and I am writing about you, Follower. See this message and your response on the Credit Score Blog.

I know what I don’t know about credit scoring. You wrote, “One credit inquiry will remove less than five points off people’s FICO scores, according to FICO.”

So, you expressed the situation with inquiries in only 13 words. When and where did Fair Isaac (“FICO”) say that, and what is the name of the person who said it?

On different pages, the organization published these sentences

For most people, one additional credit inquiry will take less than five points off their FICO Scores. (17 words)

In general, inquiries have a small impact; typically, a single inquiry can lower a FICO Score by less than five points. (21 words)

For others, one additional inquiry would take less than 5 points off their FICO score. (15 words)

I daresay your explanation is oversimplified. The idea appears to be a talking point– the party line. The same statement, word-for-word, of one above: “For most people, one additional credit inquiry will take less than five points off their FICO Scores.”

Is it possible for an inquiry to lower a FICO score 5 points or more? Perhaps Fair Isaac (who is copied on this message) will provide more information about its secret. The greatest credit scoring expert in the world still works there. If he doesn’t have the answer, nobody does.

Another inquiry enquiry

One guy (he, literally, calls himself the Points Guy) has said “two to five points” so many times that he actually believes himself. Brian Kelly was the subject on another Dow Jones/News Corporation website a couple of days ago. Your colleague writes, “Kelly says that if you’re not getting more value than the annual fee, but you don’t want to cancel the card and lose the years of experience you have with it, which can negatively impact your credit score, you can see if there’s a no-fee card you can switch to with the same issuer.”

HOKEY SMOKE! See Credit Score Myth 8.

And while that guy has a lot of plastic, you need to pay attention to another corker: “The Man with 1,497 Credit Cards”! Try to get me an answer. The poor dude can’t comment on the viral story about him– because he is not even alive! I looked into it. I checked public records in California. #1601T

The Real BIG Credit Score has dozens of factors

Your item also states, “FICO scores are comprised of five factors.”

That is not true. Your statement is Credit Score Myth 5. Who told you that? #myth5

And, nobody is getting a mortgage loan with a credit score of 850. Who is your source?

By the way, isn’t the title of that one, “How to Perfect Your Credit Score,” pushing it a little? Who wrote that headline? #TheHed

Also, tell your supervisor to send a message up your chain of command that I want my comments to a 2008 article restored. I do not participate in such discussions for my health and I am not putting up with Rupert Murdoch’s silly nonsense. Furthermore, the article that was attached to my comments is false. Employers do not use credit scores. I looked into it.

There are three comments on your story’s page. Are you going to delete them, too?

I could go on and I think I will. Another article is still false. In its source code is this

meta name=”article.summary” content=”Many employers are checking job candidates’ credit scores, but how big of a factor are credit scores in a company’s eventual decision to hire?”

By now, 8 years after I documented one very bizarre phenomenon, people giggle when they see that error. That it continues (on new and old documents) is truly pathetic. I’m having a big party for the 10th anniversary in April, 2018.

What is your supervisor’s name? I want it to make sure that my messages are getting through to the top person of your organization.

Now, let’s not leave the guest of honor out of the conversation. Wells Fargo states, definitively, that a credit score is also known as a “credit rating.”

That is debatable, but here’s the fun part: John Stumpf, the top person of Wells Fargo also states, “Employers often check the credit rating of prospective employees.” #myth2

Hashtag: Myth 2.

FUN FACT: Did you know that Wells Fargo has bank charter No. 1?

Veracity check

Finally, here is today’s truth test of your organization. In an opinion item titled “Democrats’ Zika Obstruction” dated July, the Wall Street Journal states, “Majority Leader Harry Reid recently claimed the bill ‘exempts pesticide spraying from the Clean Water Act.'”

That is false. U.S. Senator Reid is the minority leader, not the majority leader (largely due to his party not being in the majority).

Tell your supervisor about that error of the history of my country written by an unnamed person. I will not stand for it. I demand that your organization correct that error today.

I trust you, Ms. Andriotis, but your company is in no position to decide when this pathetic story of truth and falsity ends. Rupert Murdoch, the top person of your organization, is incompetent, foolish, irresponsible and does not know his place.

What is your correction policy?


Greg Fisher
Truth and Falsity
truthandfalsity.com
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio 45409-0342
mobile/text 937-681-3224

Paying judgments: Lew Sichelman, 2002 and 2010

With the Memorial Day weekend fast approaching, syndicated columnist Lew Sichelman took a shortcut.

Lew Sichelman, 2002: 

Beyond that, though, proceed cautiously. One thing you don’t want to do is pay off any judgments or collections that are at least 24 months old.

Not only is this “unlikely to get you where you want to go,” [mortgage broker Ginny] Ferguson warns, it could turn an old problem the scoring software views as insignificant into a new one the program sees as much more serious.

Why? Because scores are based on the last day of activity. So if you pay off a 5-year-old credit problem, it becomes a “yesterday event” that will have a much more profound — read that “negative” — impact on your score.

Lew Sichelman, 2010:

Beyond that, though, proceed cautiously. One thing you want to be careful about is paying off any judgments or collections that are at least 24 months old. Not only is this “unlikely to get you where you want to go,” Ferguson says, it could turn an old problem the scoring software views as insignificant into a new one the program sees as much more serious.

Since scores are based on the last day of activity, paying off a five-year-old credit problem could become a “yesterday event” that will have a much more profound — read that as “negative” — impact on your score.

2002:

In a misguided attempt to improve their credit scores, too many mortgage borrowers are taking steps that end up doing more harm than good.

2010: 

In a misguided attempt to improve their credit scores, too many mortgage borrowers are taking steps that end up doing more harm than good.

2002:

Among other blunders, they are paying off judgments when they don’t have to, closing out old accounts they shouldn’t and opening up new ones and unnecessarily consolidating their credit cards.

2010: 

Among other blunders, they are paying off judgments when they don’t have to, closing out old accounts and opening up new ones when they shouldn’t, and unnecessarily consolidating their credit cards.

Etc., etc.

 

From: Greg Fisher 
Sent: Friday, May 28, 2010 1:10 PM
To: Watts, Craig H
Subject: credit score, FICO, effect of paying judgment

 

See http://blog.creditscoring.com/?p=1257

 

Does paying a judgment decrease the FICO score?