Comments on: What Suze Orman doesn’t tell you about FICO http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/ Moving beyond the basics Thu, 04 Dec 2008 06:52:56 +0000 http://wordpress.org/?v=2.2.2 By: Jeff B http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-34354 Jeff B Mon, 08 Sep 2008 18:37:10 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-34354 FICO only shows how much debt you have, not your income. We need to start paying for things we want and not borrowing. There are very few things that you cannot save up for. The more you delay the purchase, the more you find out you probably don't need it. We paid cash for our kitchen renovation, patio and living room over the course of 5 years. If you cut up the crutch of the credit card, you will start to plan purchases more carefully. FICO only shows how much debt you have, not your income. We need to start paying for things we want and not borrowing. There are very few things that you cannot save up for. The more you delay the purchase, the more you find out you probably don’t need it. We paid cash for our kitchen renovation, patio and living room over the course of 5 years. If you cut up the crutch of the credit card, you will start to plan purchases more carefully.

]]> By: rik http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-26853 rik Sat, 10 May 2008 05:31:11 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-26853 orman is a sell out helping the big corps and banks keep us in slavery. orman is a sell out helping the big corps and banks keep us in slavery.

]]> By: jasmine http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-9960 jasmine Tue, 18 Dec 2007 07:16:48 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-9960 I only like that it is really nice n interesting one thanx for sharing it jasmine tech-chek.blogspot.com I only like that it is really nice n interesting one thanx for sharing it

jasmine
tech-chek.blogspot.com

]]> By: StumbleUpon - Your page is now on StumbleUpon! http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-9952 StumbleUpon - Your page is now on StumbleUpon! Tue, 18 Dec 2007 06:12:04 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-9952 [...] Your page is on StumbleUpon [...] […] Your page is on StumbleUpon […]

]]> By: KMC http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-227 KMC Thu, 07 Jun 2007 16:42:27 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-227 suzie orman suze ormon suzy orman ormand ormond suzie orman suze ormon suzy orman ormand ormond

]]> By: Avo Credit http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-111 Avo Credit Thu, 03 May 2007 00:24:54 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-111 You stated: "...Orman neglects to mention is that your FICO score has nothing to do with the one variable that determines your ability to pay your bills - your income..." That's not true for all people. There are some folks who may not have the needed income but have the resources (money in the bank, stocks/bonds, real-estate, other assets) to pay the monthly payment for a given loan. So income all by itself cannot predict if a borrower can pay a loan or not, at least not for all borrowers. I do not work for any of the credit rating agencies and have not seen the algorithms used to calculate FICO, but I suspect past history is a statistically better predictor of future payments than income, which is why FICO and the others rely on it. Look at it the other way - if income WAS a better predictor than past payment history, then it's in FICO's and creditors' interest to include that in the score! You stated: “…Orman neglects to mention is that your FICO score has nothing to do with the one variable that determines your ability to pay your bills - your income…”
That’s not true for all people. There are some folks who may not have the needed income but have the resources (money in the bank, stocks/bonds, real-estate, other assets) to pay the monthly payment for a given loan. So income all by itself cannot predict if a borrower can pay a loan or not, at least not for all borrowers. I do not work for any of the credit rating agencies and have not seen the algorithms used to calculate FICO, but I suspect past history is a statistically better predictor of future payments than income, which is why FICO and the others rely on it. Look at it the other way - if income WAS a better predictor than past payment history, then it’s in FICO’s and creditors’ interest to include that in the score!

]]> By: Poorer Than You » Carnival of Credit Report Stories #6: Museum Tour Edition http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-109 Poorer Than You » Carnival of Credit Report Stories #6: Museum Tour Edition Wed, 02 May 2007 21:30:42 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-109 [...] if you’ll take a peek behind this black curtain here, KMC will let you in on What Suze Orman doesn’t tell you about FICO posted at Advanced Personal Finance. Shhh! Don’t tell anyone outside of this tour, though! [...] […] if you’ll take a peek behind this black curtain here, KMC will let you in on What Suze Orman doesn’t tell you about FICO posted at Advanced Personal Finance. Shhh! Don’t tell anyone outside of this tour, though! […]

]]> By: Micah http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-98 Micah Tue, 01 May 2007 08:59:16 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-98 I kinda have a crush on her. I kinda have a crush on her.

]]> By: The Ad-Free Personal Finance Blogs Aggregator http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-72 The Ad-Free Personal Finance Blogs Aggregator Thu, 26 Apr 2007 17:42:47 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-72 <!--%kramer-ref-pre%-->[...] of Financial Fitness (see my rating for details): Generally speaking, I think... ... (more) What Suze Orman doesn’t tell you about FICO (5 clicks) From Advanced Personal Finance - view blog entries - visit this blogApril 25, 2007 at [...]<!--%kramer-ref-post%--> Kramer auto Pingback[…] of Financial Fitness (see my rating for details): Generally speaking, I think… … (more) What Suze Orman doesn’t tell you about FICO (5 clicks) From Advanced Personal Finance - view blog entries - visit this blogApril 25, 2007 at […]

]]> By: Chris http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-69 Chris Thu, 26 Apr 2007 15:30:42 +0000 http://advancedpersonalfinance.com/what-suze-orman-doesnt-tell-you-about-fico/#comment-69 I just want to point out that Suze Ormon is a hands talker, and I think she's a little nuts. :-) I just want to point out that Suze Ormon is a hands talker, and I think she’s a little nuts. :-)

]]>