Category: Factors

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.'”