New FICO score transparency initiative.

http://www.ft.com/cms/s/0/2768a088-27cb-11df-863d-00144feabdc0.html

Credit scores – those closely guarded three-digit numbers that determine how much money Americans can borrow and at what cost – are for the first time set to become widely available to consumers.

FICO, the company that develops the most popular type of US credit score, is pushing large banks such as JPMorgan Chase and Wells Fargo to share the information with their customers, people familiar with the discussions said.

Two-thirds of a person’s FICO score is determined by the timely payment of bills and outstanding credit card debt. Even a one-time late payment can hurt a person’s credit score. Although developed initially to help lenders assess a borrower’s likelihood of repaying debt, credit data is now widely used by insurance companies and even some employers.

“FICO scores should be free given their importance to consumers,” said Stephen Brobeck, executive director of the Consumer Federation of America. “Consumers who know their credit scores and understand their significance manage their finances more prudently.”

Congress passed a law in 2003 that required credit bureaux to provide consumers with a free credit report once every 12 months, but not the score, which still costs anywhere from $7.95 to $30.

Yeah, its bizarre that you have to pay to find out your own score...it seems like EVERY time the banks or whomever uses one against (or for) you they should tell you the score as it was already paid for by the bank or landlord or...

Personally, I think they should be done away with altogether.

Along with credit "reporting" agencies.

The article is not strictly accurate - WaMu USED to offer it for free, but that went away when JPM bought them...it was the only reason I kept my Wamu credit card for so long.

"Personally, I think they should be done away with altogether.

Along with credit "reporting" agencies."

And replaced with ??? They are, in fact, remarkably accurate in predicting who will and won't pay there bills on time. Like better than 95% accurate, which is why banks pay so much for them.

Jason, I miss that WaMu thing too. It'd report every little change of a few points.

Welcome back, BTW.

Along with credit "reporting" agencies."
replaced with two years tax returns and proof of assets.. It worked for Mr. Potter.

"And replaced with ??? They are, in fact, remarkably accurate in predicting who will and won't pay there bills on time. Like better than 95% accurate, which is why banks pay so much for them."

And the NSA eavesdropping on private citizens' conversations is remarkably accurate in predicting who will and who won't commit a crime.

Doesn't make it right.

You can get your FICO score for free at annualcreditreport.com

they are, in fact, remarkably accurate in predicting who will and won't pay there bills on time.

Very misused. Yes a 780 FICO is a better credit than a 620, but smaller differentials mean nothing. The Alt-A mortgage market was based on lying about income and using a FICO score instead.

virtually every financial expert would disagree with you Riversider. From Wikipedia:

"According to a Fitch study, the accuracy of FICO in predicting delinquency has reduced in recent years. In 2001 there was an average 31-point difference in the FICO score between borrowers who had defaulted and those who paid on time. By 2006 the difference was only 10 points. Meredith Whitney of CIBC World Markets has called the FICO score "virtually meaningless". Some banks have reduced their reliance on FICO scoring. For example, Golden West Financial (which merged with Wachovia Bank in 2006) abandoned FICO scores for a more costly analysis of a potential borrower's assets and employment before giving a loan. According to Richard Atkinson of Golden West, "some of our best borrowers had low FICO scores and our worst had FICO scores of 750".

Yes, Fitch has done a wonderful job predicting defaults..., and your own grep has my babe Meredith saying something that contradicts you, "virtually meaningless", you then go on to say that some banks have reduced their reliance on FICO scoring. So what is your point?

FICO only tells supposed propensity to pay. Today most of the better institutions are using information about ability to pay and evaluating your assets and spending.

A list of assets and tax returns says NOTHING about how many credit card bills you have, how much you owe, or how often you pay your bills on time. PLENTY of professional athletes and movie stars make millions and never pay there bills.

You are being too definitional oriented. The loans are easy to see and they always coud see it. But now they are also looking at your assets. Bills payments on time is already in FICO. Institutions look at it and your ability to pay.

Today FICO is even less valuable than ever. Many people are deciding to act backwards and pay their credit cards and car loan but default on their mortgage.