Credit score tips, information and guidelines for journalists/reporters

Reporters, the internet is clogged with misinformation, rumor, urban legends and bad and inaccurate reporting with little mechanism for error correction.  Do not add to it.  Use these guidelines to avoid creating problems for yourself and for consumers of information.

  1. Do not report that employers use credit scores.  Despite what Fair Isaac, Reuters, the Federal Reserve and others say, employers do not use credit scores. You don’t want some unemployed person looking for a job spending their last dollar on a credit score because of your bad reporting, do you?
  2. Do not report that the so-called “utilization ratio” accounts for 30% of the FICO credit score.  Yes, it says that on Wikipedia, but it also says, inaccurately, that employers use credit scores (see item 1, above).  Do not use Wikipedia as your source for anything (unless you are criticizing it).
  3. Do not advise consumers to limit their so-called utilization ratio to 30%.  FICO spokesmen said, “The lower that utilization number is, the better it is for your score,” and “The FICO brain trust says there is no specific number that qualifies as a ‘good’ ratio, just that lower is always better.”
  4. Do not report an average credit score.  It is unknown.
  5. Tell your boss to institute a correction procedure for published errors and to make your correction policy public.
  6. Cite your sources, period.
  7. If you have any questions, send them via email.  If you’re on a fake “deadline” made up by your boss and cannot wait, too bad.  Delay your little report (and, start earlier next time) and tell your boss to stop being ridiculous.

Report something stupid and you’ll end up on creditscoring.com.

Tips for reporters for updates.

 

credit score, employers, Associated Press

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, February 12, 2012 10:33 PM
To: Eileen AJ Connelly, Associated Press
Cc: William Dean Singleton (via Bernie Fischer, MediaNews Group), chairman & CEO, MediaNews Group
Subject: credit score, employers, Associated Press

You wrote, “Not having a credit score, or having a low one, also can mean higher car insurance rates, higher rent, difficulty getting a job and paying higher interest rates for any credit available.”

Your report is inaccurate.  The consumer reporting agencies all state that they do not provide credit scores for employment purposes.

Who is your source?

What will you do to correct your error?


Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

 

 

credit score, employers, CBS4 Denver

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, February 10, 2012 9:56 AM
To: Rachel Lulay, CBS, National Amusements
Cc: Gloria Neal, award winning on-air talent, CBS4 Denver, National Amusements; Tim Wieland, news director, CBS4 Denver, National Amusements; Randy Fischer, state representative, Colorado; Randy Fischer, state representative, Colorado; Morgan Carroll, majority caucus chair, state senator, Colorado
Subject: credit score, employers, CBS4 Denver, National Amusements

See this message and your response at https://blog.creditscoring.com/?p=3386.

You broadcast, “I was surprised to learn that a lot of companies already do look at credit scores when hiring.”

Your report is inaccurate.  The national consumer reporting agencies all state that they do not provide credit scores for employment screening.

On what day before the hearing will you broadcast a correction at the same time of day?


Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

Suze Orman’s schtick

The consumer reporting agencies all state that they do not provide credit scores for employment purposes.

Suze Orman, “internationally acclaimed personal finance expert,” is on tour right now, and tonight, she has a spot on Real Time with Bill Maher [submit question].

Despite the fact that employers do not use credit scores (they cannot even get them), Orman keeps saying (and writing) that employers do use credit scares scores.  It must sell.

Tonight, will she use the same talking point, set the record straight, or neither?  Here are examples of the millionaire’s tour schtick.

Hosted by Allowed to bleat on unquestioned for almost four minutes by the media queen, herself, the expert bloviates, “Now, employers will not hire you unless you have a credit report and a good FICO score” (1:24). Orman gets a pass from the interviewer, Arianna Huffington.

In the article associated with the video, the Huffington Post, itself, says the same thing: “It can also affect their ability to rent an apartment and get a job, as many employers now check credit scores as part of the hiring process.”

Where are all the tough questions?  They just wind her up, and let her go.  Interviewed by an actual namesake–the publisher of ForbesWoman–an oddly agitated, seething Orman said, “And because they have a FICO score, a landlord will rent to them, an employer will hire them, their car insurance will be lower (especially if it’s a good FICO score)” (5:11).

She also said, “In my opinion, credit scoring is obsolete” (1:13) while her mug still sits on the FICO credit score website as she hawks credit scores.

Discussing her legacy (“I’m closer to 61, now, than I am 60.”), the prolific author proclaims to all the people, “I want to create a new scoring system.  I hope they call it the S.O. Score” (5:46).

Oh, brother.

And then (speaking of promoting oneself) there’s the SELF thing, itself.  It is easy to see why Orman would gush, “I love SELF Magazine.” The Condé Nast publication edited out the part about employers and scores.  But they left in the bit about “Suze Orman, the smartest woman about money in perhaps the world.”

Perhaps.

 

Groundhog Day, 2012: Wikipedia – Jimbo vs. Cookiehead

Groundhog Day, 2012: Wikipedia” updates the previous year’s entry, Groundhog Day, 2011. 

In an exciting showdown, the guy most associated with Wikipedia, Jimmy Wales, has his contribution edited by a Wikipedian named Cookiehead.  Including “Jimbo,” himself, the rogue editor, the New York Times and the Connecticut legislature, 2012 documents the source of inaccurate information and how it is disseminated by a powerful, byzantine organization with a website.

 

Suze Orman’s social experiment

This train wreck is almost unbearable to watch.

Suze Orman, “internationally acclaimed personal finance expert,” is hustling her thing called the Approved Card.  But she doesn’t seem to know what kind of card it is.

The fabulous expert showed up in fabulous Manhattan to talk to Lucy Danziger, the fabulous editor of SELF, the fabulous magazine from the fabulous Condé Nast.  Danziger, who describes Orman as “the smartest woman about money in perhaps the world” asked, “Is this a credit card?”

Looking annoyed, Orman replied, “No!  It’s a debit card!”

Moments later, holding up the card for effect, she said, “It is possible that in 18 to 24 months from right here, a debit card will be deemed to generate a FICO score.”

As the chatterboxes signed off, Danziger said, “And, good luck with your credit card!”

Wagging her finger, Orman yelled, “Debit card!” and gave the camera a stupid look.

Danziger yelled back, Oprah-style, “Debit card!”

Orman hollered, Oprah-style, “Actually–my prepaid card!”

The yelling stopped as they realized what a mess they were making, and Danziger said, soberly, “Good luck with your prepaid debit card.”

Orman replied, deadpan, “No, just prepaid card.”

Ugh.

The worst thing about the interview, however, beyond the credit/debit/prepaid knuckleheadedness (or the bad audio– it isn’t your computer), is that the smartest woman about money in perhaps the world repeated this, now preposterous, urban legend:

“Employers are starting not to hire you if you don’t have a good credit report and a good credit score.”

The consumer reporting agencies do not provide credit scores for employment purposes.

Excellent journalist that she is, the editor just said, “Interesting,” swallowed it whole, and let the blowhard continue.

Su–ze — Or–man — just — won’t — shut — up — about it.

And, if you give her any guff, she’ll call you an idiot.

Bring it.

————————————————————————–

UPDATE 2/3/12

Here’s the new video, with the part about employers using credit scores (since they are not) edited out:

 

The Matrix: NBC, Reuters, Suze Orman, FICO and American Public Media

They did the dirty deed, spreading the big credit score urban legend.

Hardy har har.  There’s a tongue in cheek campaign to replace Suze Orman with Reuters’ tough Lauren “I demand a lot of answers” Young. But, in reality, it’s a perfect match.  That is, they both believe the same myth: that employers use credit scores.

Oh, those British and their dry wit.

 

credit score, employers, Consumer Reports

Today, Consumer Reports stated, “‘Your score is used by lenders, insurers, and even prospective employers, to judge how great of a credit risk you are,’ says Amanda Walker, Consumer Reports Senior Project Editor.”

Consumer Reports is not telling the truth.  The consumer reporting agencies do not provide credit scores for employment purposes.

Those shenanigans go way back:

Today’s email to Consumer Reports:  

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Thursday, January 26, 2012 10:19 AM
To: Walter D. Bristol, chairman, Consumer Reports, Consumers Union
Subject: credit score, employers, Consumer Reports

Correct this, fire James A. Guest, then resign.

https://twitter.com/#!/creditscoring/status/162542622710312961


Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

 

credit score, employers, Chicago Tribune, 2012-01-13

[for background, see Two and Two: Credit scores fall, AP] 

From: Greg Fisher
Sent: Wednesday, July 21, 2010 8:08 AM
To: Marksjarvis, Gail
Subject: credit scores fall story, 15 to 25.5 percent

You wrote: “According to research released this month by Fair Isaac Corp., which produces FICO credit scores, about 25.5 percent of Americans have credit scores below 599 — a poor score that often interferes with their ability to get a car loan or even other credit cards. That’s far below the long-term average of 15 percent.”

From whom did you learn the 15 percent figure?

 

From: Marksjarvis, Gail
Sent: Wednesday, July 21, 2010 2:04 PM
To: greg@creditscoring.com
Subject: RE: credit scores fall story, 15 to 25.5 percent

Fair Isaac released a study about two weeks ago.

 

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Wednesday, July 21, 2010 1:51 PM
To: Marksjarvis, Gail
Subject: RE: credit scores fall story, not from news release

FICO’s news release does not mention the 15 percent figure.

You make the same error as the Associated Press story regarding the 25.5% number. Actually, 25.5% are under 600, not 599.

Did you take your information from AP?

 

From: Marksjarvis, Gail
Sent: Wednesday, July 21, 2010 4:17 PM
To: ‘greg@creditscoring.com’
Subject: RE: credit scores fall story, not from news release

Is 15 percent wrong?

 

From: Greg Fisher
Sent: Wednesday, July 21, 2010 4:43 PM
To: Marksjarvis, Gail
Cc: Michael Lev, associate managing editor, business, Chicago Tribune
Subject: RE: credit scores fall story, unnamed sources

I don’t know; I didn’t do the research for the story.

This is the third request. Do you refuse to name your source? Or, did you just make up the number, yourself?

 

From: Greg Fisher
Sent: Thursday, July 22, 2010 1:13 PM
To: Marksjarvis, Gail
Cc: Michael Lev, associate managing editor, business, Chicago Tribune; Jane Hirt, managing editor, Chicago Tribune
Subject: RE: credit scores fall story, propagation

Your story just appeared on the Fresno Bee’s website.

Who is your source?


From: Greg Fisher
Sent: Friday, January 20, 2012 1:51 PM
To: Gail MarksJarvis, personal finance columnist, Chicago Tribune
Subject: credit score, employers, Chicago Tribune

You wrote, “Because employers and landlords have access to the scores, it can determine who gets an apartment or even a job.”

Who is your source regarding credit score use by employers?


Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

 

credit score, employers, Association for Financial Counseling and Planning Education (AFCPE), United State Department of Defense

It is easy to see where Jerome B. Gronfein might have gotten the idea.

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Wednesday, January 25, 2012 11:56 AM
To: Sharon Cabeen, president, board of directors, Association for Financial Counseling and Planning Education
Cc: David S. Rowe, Work & Family Life financial educator, Naval District Washington Fleet and Family Services
Subject: RE: credit score, employers, Association for Financial Counseling and Planning Education (AFCPE), United State Department of Defense

See this message and your response at https://blog.creditscoring.com/?p=3224.

Your website states:  “Our FICO score is used in about everything in our life. From what we pay in interest on loans, car insurance, getting an apartment or even a job and more.”

That statement is inaccurate; the consumer reporting agencies do not provide credit scores for employment purposes.

What are you doing to correct that inaccurate information?

You provided the certification program for American Financial Solutions, “a division of the North Seattle Community College Foundation,” who states the same thing.


Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342