Saturday, June 09, 2007

Why No Sub 500 FICO Data?

Money/CNN has a great tutorial on FICO and just how hard it is to get near 400 like our Young Snowflake has so galantly managed. Look at the difference and tank your parents for teaching you responsible behavior. Note; the data is a month old. Add at least 40bp to the low end and 60bp or more to the worst borrowers.

Anybody wanna "rent" my 800+ score before Fair Issac closes the loophole?

37 comments:

The Dude said...

FIRST

The Dude said...

Any idiot lender who would loan money to a sub500 or even a sub600 is an idiot and deserves to loose...

FlyingMonkeyWarrior said...

Secondly, and Murstly I do not care what mt FICO is, if you have money it deas not matter. If I can afford something I buy it.

KC Sarin Gas said...

This is so not fair, MOM!!1!

FlyingMonkeyWarrior said...

Good thing my FICO is not based on my mad typing skizz.

The Dude said...

Dawg tossed out the suggestion to have Snowflake eat a bug on youtube to try and distract me from FIRST.....the big looser.

Let's have him eat a big juicy cockroach...crunch that badboy and wash it down with wheatgrass shots

FlyingMonkeyWarrior said...

@ Dude,
Nice Firstness.

Akubi said...

Hey Kids!
Don't forget to play 6 Degrees of Casey Serin™ to Scooter Libby before the polls close!

Rob Dawg said...

FlyingMonkeyWarrior said...
@ Dude,
Nice Firstness.


"Age and Guile Beat Youth & Innocence" every time.

FMW, how do you avatar link to an animated gif?

FlyingMonkeyWarrior said...

lol, Thank you.
Too fun. My eyes glaze over when you guys talk computer stuff!
I just find an animated gif and cut and past it the same way I do any other avatar or url.
I have a collection of moving gifs.
I just google moving ______ gif, or animated moving _______. There are not a lot of them, but they are out there.
Like my 'V for Vendetta' and my 'flying monkey' that cracks me up.
I have a swimming fish, and the 'red beauty that cried blood for the closing of IAFF'.
These frog eyes are to celebrate the discovery of a beautiful purple species by scientists this week. I love frogs and blogs!

FlyingMonkeyWarrior said...

@ Dawg,

http://www.halhigdon.com/rundogsrun/dogs3run.gif

or here

http://www.webweaver.nu/clipart/img/nature/dogs/dogrunning.gif

FlyingMonkeyWarrior said...

OMG this one is so cute.

http://home.earthlink.net/~mutchler-lee/images/ani-dogr.gif

FlyingMonkeyWarrior said...

http://www.webdevelopersnotes.com/graphics/dani.gif

There. Done! Easy and cool.

subsonic22 said...

There was one lender that Casey didn't f over, the private lender in Texas that required the 35% downpayment with the 14% interest rate. These lenders don't care what your FICO score is, payment history, employment, deposits, etc, the ultimate no doc loans (Casey's favorite - sweet!). As long as you want to plunk down 35% at 11-14%, pay 5-10 points + closing costs, you will get your loan. This will be the only type of financing Snowflake will get for the next 7 years or so.

The Dude said...

Sub,

Let's see how that works out on the spreadsheet:

Bugeater needs 35% down stroke: Available cash - ZERO

Bugeater needs to nail 5 points up front: Available cash - ZERO

The rest is irrelevant since he's on a "don't pay anyone" streak.

sercasey said...

Yes, I'd like to rent your 800+ FICO score. I am in need of capital to do more sweet deals.

Uzbecki Durak said...

"At 6:52 PM, sercasey said...
Yes, I'd like to rent your 800+ FICO score. I am in need of capital to do more sweet deals."

Don't think he hasn't considered that.

subsonic22 said...

Dude,

He did come up with the 35% before (cash back at closing anyone?). The private lenders don't care where the deposit money comes from. However, since he won't be taking credit card cash advances or cash back at closing the next decade or so, 35% is probably out of the question. I have heard of some private lenders accepting the appraised value at close on a purchase instead of the sales price. They at least are getting the proper risk premium from the likes of Snowflake.

Sweet Cashback said...

Funny comment in a local newspaper about an article about the flat trend of housing prices in Orange county, NY:

Remember the 'good old days' when we were able to purchase a decent home in Orange County, on a nice piece of property for $70-$80,000? I do, it was not that long ago. Now the 'American Dream' is the ability to pay all of our monthly living expenses on time and, if lucky, have enough left over to buy groceries. The median selling price is 'down' to $313,000? Wow..ok kids, jump in the car, we're going house hunting! Oh wait, sorry, we can't afford the gas it will take to get us there. Yes..the 'American Dream' indeed!

MaxedOutMama said...

Hey, Rob. Nice chart. It works just as well to show your readers the effect of the mortgage rate hike in recent weeks. Based on current spreads, we should be heading to near 7% from about 6.2% earlier....

HSH Trends is updated weekly and shows averages by area. You can see the risk premiums creeping in. In one week, the move was approximately 20 basis points. Last week, for example, NJ was at 6.33%; this week it is at 6.53%.

Needless to say, this is another kick in the teeth for the housing market.

Straw Buyer said...

Hell, I don't care what the interest rate is, because I don't plan on paying it back anyway. Give me some sweet cash back at closing and I'll be on my way.

The Dude said...

The only cash Casey ever had was somebody else's....and that's all gone, and then some.

Now, I will help him with his cash poor situation.....$30 to eat a bug and post it to YouTube.....that's thirty US bucks for 10 seconds. Eat a whole roach motel and I'll throw in a wheatgrass shot bonus.....

Rob Dawg said...

M-O-M,
I'm cooking the raviolis right now and tomorrow it's Disneyland so I might be a day but I'm going to revive the "Monthly Nut" discussion. Fer some of us old thnkers price and cost mattered but last few years all that seemed to matter was monthly burden. Got so the just teaser rate was all and even the insurance and taxes weren't a worry as they didn't show up every month.

Benoit™ said...

Extrapolating the data on the chart, Nigel Swaby's rumored FICO score of 2759 will net him a sweet fixed-rate loan APR of around negative 10%. That's right, Swaby can go around taking out six-figure mortgages, and then the banks have to make monthly payments to him!!

Par for the course for an A-List celebrity who's "nationally recognized" though...

segfault said...

My mother has only had one or two credit cards in her lifetime. Usually when she traded cars, the loan was put in my father's name, but last time, she decided to put it in only her name. When they ran her credit, the finance person said hers was one of the highest scores they'd ever seen!

Mozatta said...

The thing you have to keep in mind is the reason for a sub-600 score. I work with clients all the time who have a 540-580. A lot of those consumers are first-time homebuyers and their fico is low simply because they have NO credit, rather than bad credit. If you have no current debt and maybe 1 or 2 old collections(mostly they are medical collections) then you are likely to have a sub-600 fico. Lending on those borrowers isn't stupid, they simply haven't acquired any debt.

On the other hand, you have people like Snowflake that have a sub-600, or in his case, sub-500 fico due to irresponsible credit tendencies. Whether it's having lates on your credit cards, racking up multiple collections or buying and foreclosing on numerous homes, this is a sub-600/500 group that is foolish to lend to.

There is a whole group of people out there that think all debt is bad debt, so they don't have any credit cards or open trades. Does that mean they are bad borrowers? Some might say.

That's all. Good day.

king friday the 13th said...

romor has it there was some suspecious trades after the USA Today article came out.

supposedly, there were 2759 sales of Revalon and Proctor and Gamble after the article was published.

The Dude said...

This just in......breaking news from Utah:
Order of the Koi

HurtMe said...

Uhh, hehe, uhh, thanks Dude, beer came out my nose Dude...

-RB

Lou Minatti said...

I know how we can get Casey to eat a bug. Just tell him that it's organic.

If Casey juices the bug, does that count?

Mozatta said...

Order of the Koi?

Is that some Japanese high-society secret club?

The Dude said...

When you do the math, it's $10,000/hour.....30 bucks to scarf down a bug. I'm in for the full $30.....all Casey has to do is grab a big juicy one off his SIL's floor, chew it up, and down the hatch.

C'mon Casey, we know you read Dawg's blog so jump in here and make some $$$$....you aren't doing anything else and certainly don't have a better offer.

;urker said...

Casey

My offer of $100 to Habitat for Humanity still stands if you eat a bug. So, not only will you make $30,000 an hour by eating a bug but you will do good as well. Your Karma is sadly lacking so take this opportunity to improve it.

lurker said...

P.S.

Bugs are semi-vegan and 100% Natural

Casey Fannnnn said...

Off-topic, but hilarious. Go read it!:

Former Rep. Mark Foley, R-Florida, who was forced to resign last year after he was caught chickenhawking congressional page boys, is reportedly returning to his career as a real estate broker. He is remembered around Palm Beach for once netting a $500,000 commission on the sale of a golf course to a local school district.

Anonymous said...

When I started working, my credit rating was terrible as a result of no borrowing history, no house, no car, and a low-paying flakey academic job. However, I would still get credit card offers in the mail, presumably because of my subscriptions to professional engineering publications (I subscribed to anything that I could get for free).

One day I received an offer for a gold mastercard. Having lots of time on my hands, I filled out the form and sent it in. The inevitable denial arrived shortly thereafter.

At the time, state law required the credit agencies to accept a demand for review whenever they deny credit. So, having a lot of free time, I initiated the review process.

During this time (early 1980's), there was a severe credit crunch due to extremely high interest rates. Rating agencies were having major problems and the one that denied me credit went bankrupt!

Rather than deal with the legal rats nest that this situation created, the credit card company simply sent me the gold card.

To those who discovered the Fico "piggyback" loophole: I salute you my brothers!!!

Michael said...

Thanks for pointing this information out I appreciate it. I have developed a site (http://notjustascore.com/njas/) that allows people to post their credit scores and what loan etc they recieved anonymously. I think this would help anyone looking to find out information beyond just a credit score.