- Sharing a revelation I had about FICO
- What the FICO score really is
- Don’t make financial decisions based on a product
- Making financial decisions based on what others tell us is important
- Quote of the week
I’ve spoken and written before about my feelings about the FICO score but today I want to share a revelation I had recently while reading an article talking about FICO’s new credit scoring system FICO 9.
There are a lot of great quotes in there but the light that went on in my head while reading the article was that FICO isn’t a score . . . it’s a product. I’ve always known FICO is a product but it really dawned on me the absurdity of measuring how well we are doing financially based on a product. What makes it worse is that in another article I found most people believe that mortgage companies aren’t going to switch over to FICO 9 any time soon.
With that being said, in today’s lesson we are going to discuss why measuring yourself against a product design to help lenders, not consumers, is dangerous. Also we’ll discuss what to measure yourself against instead.
For other lessons I have done on credit reports and credit scores:
- Does your credit score matter?
- Freezing your credit report
- The how, what, and why of your credit report
- Don’t be fooled by the credit lie
This lesson’s quote is brought to you by the JW’s Financial Coaching Newsletter and comes to us from Calvin Coolidge:
“There is no dignity quite so impressive and no independence quite so important as living within your means.”
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