Experts | The Credit Score Blog

Duke tells students to revise history

From: Greg Fisher (greg@creditscoring.com)
Sent: Wednesday, October 02, 2013 11:39 AM
To: Richard H. Brodhead, president, Duke University
Subject: RE: credit score, employers, myth, falsity, truth, efficacy of a social media message, ivory tower II, falsity

I do not see a reply to my email from you, and I am troubled that I have not noticed any that you might have made. But, the change that you made to your previously false document (if that is your response (and if it is not, then it is the greatest coincidence in history)) gives me, at least, a glimmer of hope for the future of the planet.

However, something else—something fundamental—troubles me even more. You state: “You can always ask a credit card company or other creditor to have negative information removed from your account. They want to keep their customers happy, so they will commonly oblige your request if you have regularly made your payments on time and just made a few errors.”

That is in your document—available worldwide—titled, “How can I improve my credit score?” and is the biggest crock of nonsense that I have ever heard. But I have heard it before and did what I could to stop it. After publicly following consumer reporting for 15 years, I have heard it all.

The law, the Fair Credit Reporting Act, states

The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

It is no wonder the students and young alumni of Duke have an advantage: They have the power to change history.

I used the microcosm of the myth that employers use credit scores to determine the integrity of mainstream media. In that exercise of herding cats, I found that, largely, media organizations are passive-aggressive: They ignore their problem with accuracy, errors and corrections, and me. The First Amendment to the U.S. Constitution lives. The New York Times (the metaphor as well as the actual organization) needs no formal license to exist, publishes falsity (even about American history) and answers to no one. Now that that exhaustive (and exhausting) 5-year study of mine is over, as I crawl out of that rabbit hole of ridiculousness and into the light on the surface, I find ridiculousness ten-fold and growing.

But institutions of higher learning are not cats. They are (to use a fourth metaphor) a different animal, and, in some cases—as with public institutions, for instance—do, indeed, answer to higher authority. Although that appears not to be the case with you, your affiliation with a religious organization indicates a relationship to a higher moral authority, at least.

To whom Experian and its leaders ultimately answer in regard to misinformation, today, is confusing to me: Is it the Federal Trade Commission or Elizabeth Warren’s notion, the Bureau of Consumer Financial Protection (who likes to call itself the Consumer Financial Protection Bureau).

And so, since I have not seen a reply from you, I will now berate you with a prediction: You will change your website regarding that bunk about begging a creditor to create a history that never was, and, indeed, sir, suggesting that banks commonly lie to credit bureaus. It is heresy. Your outrageous suggestion impairs the efficiency of the banking system and undermines public confidence.

Have some dignity.

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
Page A2
pagea2.com
PO Box 342
Dayton, Ohio 45409-0342
937-681-3224

Truth, falsity and myth in the Ivory Tower

From: Greg Fisher (greg@creditscoring.com)
Sent: Monday, September 30, 2013 9:27 AM
To: Richard H. Brodhead, president, Duke University; Richard H. Brodhead, president, Duke University (via public affairs office); Irene Jasper, director, Student Lending, Duke University; Personal Finance@Duke, Duke University
Cc: Alex Rosenberg, Department of Philosophy, Duke University
Subject: credit score, employers, myth, falsity, truth, efficacy of a social media message, ivory tower

See this message and your response at https://blog.creditscoring.com/?p=5408.

Your website states: “A poor credit score may mean having to make a large deposit in order to open an account with the electric company or to sign a new lease. It could even mean the loss of job opportunities.”

What is the name of the person who wrote that?

Experian claims, “Creditors, landlords, and even some employers consider a person’s credit score before deciding whether they will approve a loan, lease an apartment, or hire an applicant.” However, Experian also states, “No, Experian’s business policy prevents the inclusion of credit scores with an employment report, at Experian called Employment Insight.”

Employers do not use credit scores. I looked into it. See a five-year account of false statements (including yours, now), in this bizarre and fascinating phenomenon, documented at creditscoring.com. Apparently, you have not noticed the pages behind the links above. During your social media chat with Experian, will you address the notion regarding credit scores in employment alleged on your websites?

What evidence proves that employers use credit scores? What prompted the statement in your document? I am attempting to track the myth to its original source. Who provided—or how you came about—the misinformation is valuable.

Today, please acknowledge receiving this message.

There are many false statements; the one mentioned above has serious consequences. I believe that you and Experian have the burden to prove that your statements are true. Neither of you have provided any evidence.

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
Page A2
pagea2.com
PO Box 342
Dayton, Ohio 45409-0342

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Bloomberg News personal finance blog Ventured&Gained

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, May 17, 2013 1:02 PM
To: Rick Levinson, blogger, Ventured&Gained, Bloomberg News
Cc: Meghan Womack, press contact, Bloomberg News
Subject: credit score, employers, edit it

See this message and your response at https://blog.creditscoring.com/?p=5070.

Employers do not use credit scores because they cannot even get them. However, this week, in the ironically titled “What’s in a Credit Score? Few Know.,” you wrote, “And increasingly, employers are using the scores in hiring decisions.”

I solved that part of the puzzle 5 years ago. Where have you been? You also said, “Pretty scary when you consider that these scores help determine whether you’ll get a credit card what[SIC] you’ll pay for it.”

Use complete sentences.

In that publicity piece for VantageScore, you mocked citizens: “There was one bright spot, however: Apparently folks have gotten the message that making loan payments on time helps raise your credit score. Ninety-four percent of quiz takers got that right.”

It’s no wonder we’re so misinformed. In this case, since you have such broad influence, I’m ready to listen as you provide your source (or, what you thought was your source) for the mere notion that employers use credit scores, at all. But it is the “increasingly” part that I’m most interested in. Who did you get that little gem from?

Or did you just make it up? I haven’t run across any reports of a New York Noodle Nook 900 credit score requirement to get a job there. Have you?

The same misinformation that you just published (and its inevitable syndicated error) has serious, real, actual consequences for democracy. So, stop clucking your tongue at we stupid Americans and respond. Do so today. And, make sure that you do not make seem like your error never happened. What is your correction policy?

Employers do not use credit scores, and media have created a big mess. You want a scoop? There’s your big scoop.

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
Page A2
pagea2.com
PO Box 342
Dayton, Ohio 45409-0342

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Myth in myths article

With regard to the so-called “utilization ratio,” common sense says More = Bad, and Less = Good, and the scoring model conforms to that intuitive notion. But, here is another unfortunate case of misinformation; a syndicated error.

Recently, the bankrupt Tribune Company announced a new leader. Perhaps this is a new beginning for errors and corrections.

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, January 20, 2013 11:53 AM
To: Gregory Karp, Tribune Newspapers (2) Cc: Beverly Harzog, credit card expert, author, and consumer advocate; Adam Levin, chairman, cofounder and expert, Credit.com
Subject: Myth in myths article

See this message and your response at https://blog.creditscoring.com/?p=4582.

In “Credit scoring myths — and the facts,” You wrote: “Instead of looking at how much credit you have, scoring systems look at your ‘credit utilization,’ how much of your available credit you’re actually using at any given time. Credit experts are usually reluctant to say exactly what the ideal credit use is, but when pressed, [Credit.com chairman and co-founder Adam] Levin said it’s 10 percent, as ridiculous as that sounds.”

That statement is inaccurate. According to Fair Isaac, the FICO score company, “Generally speaking, the higher your utilization rate is, the greater is the risk that you will default on a credit account within the next two years… That’s why it’s always good advice to keep your credit card balances low – the lower the better.”

Adam Levin’s own website even states (comprehensively, and with near-perfect symmetry), “The lower your ratio, the higher your score will be,” and “The higher the ratio, the lower your score will likely be.”

Avoid errors in your reporting by referring to “Credit score tips, information and guidelines for journalists/reporters.” See #3.

What is your editor’s name?

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

6/6/15 update: His response.

Not almost 30 percent

“Keeping revolving credit low can have a positive impact on an individual’s credit score, since this accounts for almost 30 percent of a typical score.” – A Fair Isaac press release, December, 2012

Let’s say we have 100 loaves of bread. There are two categories: Baked, and not yet baked (still dough).

There are 30 loaves in the baked category, and there are 6 types of loaves within that 30:

1   white
1   wheat
1   sourdough
1   French
25  rye
1   multigrain
------------
30  TOTAL

If we add the 70 loaves that are not yet baked, the total is 100.

1   white
1   wheat
1   sourdough
1   French
25  rye
1   multigrain
70  not yet baked
----------
100 TOTAL

Is it honest to say that almost 30 percent of the loaves are rye?

credit score, employers, Athens Patch, AOL

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Wednesday, August 15, 2012 3:14 PM
To: Tim Armstong, chairman and CEO, AOL (via Maureen Sullivan)
Cc: Rebecca McCarthy, editor, Athens Patch, AOL; Jon Brod, CEO and co-founder, Patch, AOL
Subject: credit score, employers, Athens Patch, AOL

See this message and your response at https://blog.creditscoring.com/?p=4132 and https://blog.creditscoring.com/?tag=aol.

You published, “Your credit score can actually persuade a company to hire or not hire you if you are seeking employment.”

Employers do not use credit score because they cannot even get them.

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

[RESPONSE FROM A PATCH EDITOR]