Author: Greg Fisher

Employer hiring decisions, credit scores, and the Federal Reserve III

See the previous email to the Federal Reserve.

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
From: “creditscoring.com” <greg@creditscoring.com>
Subject: Re: credit score, employers III
Cc:
D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta;
Webmaster, Federal Reserve Bank of Atlanta;
Jean Tate, media relations liason, Federal Reserve Bank of Atlanta;
Federal Reserve Consumer Help; 
Dennis P. Lockhart, president and chief executive officer, Federal Reserve Bank of Atlanta;
D. Scott Davis, chairman, Federal Reserve Bank of Atlanta (via email address of Debbie Curtis-Magley, UPS;
Patrick K. Barron, first vice president and chief operating officer, Federal Reserve Bank of Atlanta;
Carol B. Tomé, deputy chairman, Federal Reserve Bank of Atlanta;
Date:  2/26/09

Please reply.

At 12:22 PM 2/17/2009, creditscoring.com wrote:

Please reply.

At 12:34 PM 2/12/2009, creditscoring.com wrote:

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

What is the name of an employer who uses credit scores?

 [Update, 4/18/10:  http://creditscoring.com/influence/… atlanta.html]

US government spoofs Experian


As seen on Internet TeeVee!

 

 

The FTC spots say,  “No hidden fees.  Absolutley free.”

The credit score sold at the spoofed Experian website FreeCreditReport.com is the PLUS Score.  Experian states:

Your PLUS Score is formulated using the information in your credit file. It is modeled after the hundreds of commercial credit scores that help potential lenders, landlords, and employers quickly gauge your credit history and decide what kind of a risk they might be taking if they approve your application.

See “Credit scores in employment, Believers and Nonbelievers.”  Which side are you on?

Employer hiring decisions, credit scores, and the Federal Reserve II

See the previous email to the Federal Reserve.

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
Subject: Re: credit score, employers II
Cc: D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta
Date:  2/17/09

Please reply.

At 12:34 PM 2/12/2009, creditscoring.com wrote:

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

What is the name of an employer who uses credit scores?

Employer hiring decisions, credit scores, and the Federal Reserve

The Federal Reserve Bank of Atlanta periodical publication “Partners in Community and Economic Development” (Vol. 18, No. 2, 2008) contains an article titled “New FICO Model Changes Approaches to Consumer Credit.”

Here is the initial email to the U.S. central bank:

 

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
Subject: credit score, employers
Date:  2/12/09

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

What is the name of an employer who uses credit scores?

 See the next email to the Federal Reserve.

Short sale, credit score

Subject: Short Sale
From: DM
To: greg@creditscoring.com
Date: 1/21/2009

I’m in the process of selling my home, and am likely going to sell it for less than I bought it for. Therefore, I will still owe the bank some money from my mortgage. They have offered to do a short sale of the home, in which they would absorb the difference. How will this affect my credit score?

 

Subject: Re: Short Sale, Fair Isaac statement, lending guidelines, points lost
To: DM
Date: 1/23/2009

See the Fair Isaac Q&A with the question, “Are the alternatives to foreclosure any better as far as my FICO score is concerned?”

For borrowing money for a house in the future, however, lending guidelines trump the credit score. For instance, Fannie Mae’s rule is outlined in its June 28 announcement: “Due to the increased incidence of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.” Fannie Mae is conducting pilot programs to test a potential new policy that quickens the preforeclosure sale (“short sale“) process.

Regarding the number of points lost, as with foreclosure (or any action), it depends on other factors. One columnist writes, “FICO spokesman Craig Watts said that the impact of a foreclosure on an individual’s score depends heavily on the payment history, length and number of credit trade lines in a consumer’s file, but ‘it is always significant.'” A big reason that there is little official information (although there are many opinions) on the true effect of a short sale is an old conundrum of credit scoring: The observer’s paradox.  The consumer’s mere knowledge that he is scored changes his behavior.