Credit News Series #1

Credit News Series #1

“FICO”, Fair Isaac & Company recently came out with yet another FICO credit score model supposedly to help consumers have higher FICO credit scores.

Once again the news media went wild over the supposedly “good” news, once again you the consumer have been deceived.

Here’s the article I wrote and sent to Consumers Union, publishers of Consumer Reports magazine the last time this happened when “FICO-9” was released by FICO. Live and learn because the media is getting it all wrong yet again.

December 18, 2014

Letter to Editor, Consumers Union, Consumer Reports

Re Jan. 2015 article re credit reports

Dear Sir or Madam,

As a FICO score and credit resolution expert I’d point out only one error, number 10 of 11 Steps to Rehab Your Credit.


Wrote probably the first book ever on how FICO scores actually work (2001)
Guest on radio shows nation wide 2002-2006, 2015-
Published world wide* consumer credit and score articles, Gannett Publishing 2003-2007
CA Dept of Justice registered Credit Services Organization–and the ONLY one in CA which does NOT use illegal credit dispute tactics or other fraudulent tactics
* Pen name Dave Peters

I am an expert on the mortgage FICO models in particular.

If consumers want to raise their mortgage FICO scores they absolutely must not pay their collection accounts, not a penny, contrary to your advice.

If they do pay collectors then their mortgage FICOs will either drop or fail to rise at all.

FICO-9 might ignore paid collections if any company buys it for credit decisions but history often repeats. FICO-08 (2008) made similar promises and NO creditor bought it for five long years until 2013 when FICO renamed it FICO 8 and sold it to Citi credit cards only.

It would be too expensive to re-model risk regarding mortgage loans and Fannie/Freddie say they won’t consider changing mortgage score models for at least two years.

When it comes to vaunted FICO score news I never buy into the hype until I see what really happens.

Thank you,

Dave Schram

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