Canada – Pointage de crédit junk journalism from ValueClick

In an item on the Globe and Mail website, an Investopedia article contends, “Credit scores range from 300 to 850.”  However, in Canada the “pointages FICO vont de 300 à 900.”

In the U.S., the FICO credit score scale is 300 to 850.

Investopedia (who is actually based in Canada), a division of ValueClick, provides junk journalism articles to Hearst and Forbes, too.  Martin T. Hart is the chairman of ValueClick according to Forbes.  Whether you choose to believe Forbes about that is entirely up to you.

FHA average FICO score surpasses 700

FHA (the Federal Housing Administration) reports, “For the first time the average FICO score for insured cases reached the 700 level — actually 702.”

But, somebody thinks that’s not necessarily such a great thing.  The U.S. Department of Housing and Urban Development (HUD (FHA is part of HUD)) has just opened investigations resulting from complaints filed by the National Community Reinvestment Coalition (NCRC).  NCRC states that its investigation “reveals that too many of the country’s largest financial institutions are refusing to lend under the FHA loan program to consumers with credit scores between 580 and 640, despite the fact that FHA policy establishes a 100% guarantee for refinance.”

However, lenders are judged by their default and claim rates, and their underwriting authority can be termintated if those rates are too high.

Also, see:  Average credit score chart, FHA loans.

Zillow and SF Chronicle believe Fed credit score info

Consumer reporting agencies TransUnion, Equifax and Experian all emphatically state that they do not provide credit scores for employment purposes.

Despite that, again, the Federal Reserve claims that credit scores are, indeed, used in employment.  Zillow and the San Francisco Chronicle believe it.

The first sentence of a Federal Reserve Bank of Cleveland commentary states, “Credit scores are used in nearly every part of our lives, from applications for car loans, mortgages, credit cards, and car insurance to even some hiring decisions.”


FICO score service on TransUnion website to end

The availability of FICO scores on TransUnion’s website TransUnionCS.com will end by March 31, 2011, according to TransUnion’s Steve Katz.

Consumers will still have access to FICO scores based on TransUnion files at myFICO.com after the end of the TransUnion Consumer Solutions service.

Equifax FICOs are available from myFICO or Equifax.com.  Consumers’ access to Experian FICO scores ended in 2009.

UK ICO – Credit

In the United Kingdom, the Information Commissioner’s Office (ICO) refers to credit bureaus as “credit reference agencies.”

The ICO is the UK’s independent authority “set up to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals.”  The Information Commissioner enforces the UK’s Data Protection Act 1998 and Freedom of Information Act 2000.

The office provides a document for consumers titled “Credit explained.”

Canada – Understanding Your Credit Report and Credit Score

“Understanding Your Credit Report and Credit Score,” is a publication of the Agence de la consommation en matière financière du Canada–also known as the Financial Consumer Agency of Canada. 

You can even take a quiz.

Transunion and Equifax are mentioned; Experian is not.  Canada is not even on the Experian press page drop-down list of countries.  The company ceased consumer credit bureau operations in Canada in 2009 (but paid $207 million cash for creditscore.com and creditreport.com in 2010).

The FCAC, established in 2001 by the Canadian federal government, is an independent body “working to protect and inform consumers of financial services.”

National Association of Realtors – NAR credit policy

The NATIONAL ASSOCIATION OF REALTORS actually has a written credit policy; it is named “NAR Credit Policy.”

The sub-title is, “LENDERS, FHA, THE GSEs, AND FEDERAL REGULATORS SHOULD REASSESS AND AMEND THEIR CREDIT POLICIES SO MORE QUALIFIED BORROWERS ARE APPROVED FOR MORTGAGES”

The policy states:  “NAR questions the assumption that borrowers who agree to a loan modification or a payment plan for credit obligations they can no longer afford but who then demonstrate their ability to handle the modified payments are higher credit risks. NAR urges FICO to study the credit risk performance of these consumers and modify the FICO formula accordingly.”
 

Dave Ramsey on employers and credit scores


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

From: Greg Fisher
Sent: Tuesday, November 23, 2010 6:46 PM
To: Dave Ramsey
Subject: FW: credit score, employers, Dave Ramsey, Dave Says

You wrote, “I wouldn’t want to work for a company that puts more emphasis on my FICO score than on me as a person… there are so many ways to make a living in this world that there’s no reason to put up with being reduced to a number like that.”

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

______________________________

From: Greg Fisher 
Sent: Sunday, November 28, 2010 12:04 AM
To: Dave Ramsey; Dave Ramsey
Subject: RE: credit score, employers, Dave Ramsey, Dave Says II

Please reply.

______________________________

From: Greg Fisher
Sent: Monday, November 29, 2010 10:22 PM
To: Dave Ramsey; Dave Ramsey; Dave Ramsey
Subject: RE: credit score, employers, Dave Ramsey, Dave Says III

Please reply.

______________________________

See

http://www.foxbusiness.com/personal-finance/2010/11/23/potential-employers-check-credit-score/

 http://www.cbn.com/finance/ramsey111610.aspx

http://www.thehawkeye.com/story/Dave-says-112110

http://www.thekansan.com/newsnow/x794473925/Advice-on-engagement-ring

http://www.decaturdaily.com/stories/A-ring-on-her-finger-doesnt-have-to-cost-an-arm,71508

http://www.independentmail.com/news/2010/nov/21/dave-says-guidelines-purchasing-engagement-ring/

http://www.sj-r.com/business/x1892561430/Dave-Ramsey-Personal-Finance

http://www.knoxnews.com/news/2010/nov/22/spend-one-months-salary-on-engagement-ring/?partner=RSS

credit score, employers, Huffington Post III

[previous message]

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, November 12, 2010 4:39 PM
To: Laura Bassett, reporter, The Huffington Post
Cc: Mario Ruiz, VP, media relations, Huffington Post
Subject: RE: credit score, employers, Huffington Post, identity II

 Please reply.

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

____________________

From: Laura Bassett, reporter, The Huffington Post
Sent: Friday, November 12, 2010 4:43 PM
To: greg@creditscoring.com
Subject: Re: credit score, employers, Huffington Post, identity II

www.amrail.net

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, November 12, 2010 8:49 PM
To: American Rail Marketing
Cc: Laura Bassett, reporter, The Huffington Post; Mario Ruiz, VP, media relations, Huffington Post; Chris Davis, Huffington Post
Subject: credit score, employers, Huffington Post

The Huffington Post reports: “After working for the same railroad for 14 years, never missing a house or car payment, Sammy Bailey says he never expected his credit score to keep him out of a job… Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.”

Do you use credit scores in employment screening?

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

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Saturday, November 13, 2010 12:06 AM
To: [name withheld], American Rail Marketing; American Rail Marketing (info@amrail.net)
Subject: RE: credit score, employers, Huffington Post

The last message, which was sent to the email address on your homepage, was returned as not able to be delivered.

Please reply.

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Saturday, November 20, 2010 10:18 AM
To: American Rail Marketing (info@amrail.net); [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing
Cc: Laura Bassett, reporter, The Huffington Post
Subject: RE: credit score, employers, Huffington Post III

The Huffington Post reports: “After working for the same railroad for 14 years, never missing a house or car payment, Sammy Bailey says he never expected his credit score to keep him out of a job… Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.”

Do you use credit scores in employment screening?

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

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, November 28, 2010 8:32 PM
To: Laura Bassett, reporter, The Huffington Post
Cc: American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; Mario Ruiz, VP, media relations, Huffington Post; Chris Davis, Huffington Post
Subject: RE: credit score, employers, Huffington Post III

See “credit score, employers, Huffington Post III.”

Did you ask American Rail Marketing if they use credit scores in employment screening?  If you did, what was their response?

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