Okay, so I checked my FICO score today, and, well I'm not too happy. I mean, when you were a kid, and the teacher was yelling at you about not ruining your permanent record, this is what she was talking about. She just didn't explain it. This is what it's all about today. This little three digit number calculation, based on your credit reports, is what makes the world go around. A high score, and the world is at your fingertips. A low score, and the financial world views you as a credit serial killer. In fact, as an adult, unless you are a serial killer, child molester, or rapist, this score holds high regard in peoples view of you. Many minor criminals can do jail time, but if their credit score is good, they can get whatever they want. In fact people will say, "He's a dirt bag otherwise, but he's driving a nice car because his credit is good", or, "Look at that guy, he was convicted of wire tap fraud, but he always pays his bills. Now every girl in town wants him because he has a great credit score, and can buy them whatever they want". I mentioned in another blog, that I know women that won't even date a guy if his score goes below 700. Its getting to the point that you have to fill out a credit app just so they can check your score before you order at Burger King, and ask for extra ketchup. "Sorry sir, your score is a little low, so no extra ketchup". It's all about the image.
Now, we all believe that this score is a reflection of how we pay are bills. This is most, but not all of it. It also takes into effect your debt ratio, how much you pay on those bills, and the length of time you have those credit cards. I pay all my bills on time, but maxed out those cards, and that score dropped like a rock. Apply for a new card, and guess what, down it goes. Get upset at a department store over some bad merchandise, don't pay the bill, and the score drops, even if your right. Say the word credit, and your score drops. My 87 year old mother has a great score and had to make a dental payment which nearly maxed out one of two credit cards and- guess what. In fact what I don't get about this system, is that it doesn't take income into account, because my mother hasn't worked in twenty five years, and American Express did everything they could to convince her to take a card. It doesn't make sense but, we base our whole life, and our ability to buy anything we can't pay cash for on this FICO thing.
After a few sleepless nights about my FICO, I think I finally figured a few things out. It's all about the banks. They want us to have great credit scores to buy that house or car, or apply for that platinum Visa card, but then they want it to drop, so they can charge more interest. Call me paranoid, but this conspiracy theory makes sense. That letter in the mail from Mastercard says,"Based on your great credit score, we're offering you a gold card with a $10,000 limit, at 0% interest for the first year, and 4% after that". So,who wouldn't take it. You sign up, and the card comes. At 0% for the first year, you max it out on a big down payment for your new Lexus. Hey, it's free money for a year. But, wait. You maxed it out, and your making minimum payments. Your score drops. "Based on our recent credit score check, we find we are unable to continue offering your card at 0% and have raised the rate to 14%", says the next letter from Mastercard. Shit. Now the payments are higher, so one month your late a few days. Late charge $39.00. '" Based on your recent late payment, we have raised your interest rate to the default rate of 29%. Good Luck", says the next letter. Okay, so now the great score is just an average score, and the bank makes bank because you have a low FICO! What a gimmick. No wonder why the credit card industry put my loan sharking Uncle Vito out of business.
I say to hell with FICO. Not only is it a system for the banks to make more money, its also the biggest tattle tale system in the world. Late on one bill, and you're scorned by everyone. I say, don't pay on time, and if Mastercard cancels you, so be it, but if Visa wants to take a chance, why not. I mean you'd think they'd be happy I screwed the competition. And why so much importance on this in our society. We have 'In God we Trust' on our money because in this country money is a God. What about other things in life? What if they had a morals FICO. "Hey I heard John just cheated on his wife and his moral score dropped to 200". Now no woman will touch him", or, how about, "I heard Mrs. Smith stole three pies from the grocer." What a bitch, I hope her score goes down 50 points and no more pies for her". With a moral score, we'd probably all be in trouble, but it's a thought. Let's get off this idolizing money in this world. Yes, we all need it, it's great to have it, and we need to responsible with it, but there's more than this to life. I have yet to hear anyone say on their deathbed, "My only regret is not having a better FICO score".
Comments