Consumers blindsided by Experian on credit score
Filed under: Banks, Debt, Real Estate, Bankruptcy
At a time when it's so important for consumers to monitor their credit scores, Experian, one of the three credit reporting agencies, has decided consumers are not entitled to see their FICO scores based on their Experian credit file. I did call Experian's press office for a comment, but have not yet received a call back.Federal law only requires that the credit reporting agencies make your credit file available, there is no law stating that you must have access to your credit score before applying for a loan.
Beginning on February 13, you will only be able to get Equifax and TransUnion credit scores on myFICO.com. When you go to myFICO you'll see a banner headline about the cutoff by Experian. According to the notice on myFICO's discussion boards, Fair Isaac says, "It is important to understand the majority of lenders will continue to use FICO scores based on Experian data to make creditworthiness decisions, but those FICO scores based on Experian data will not be available via www.myFICO.com, nor any other public venue."
Fair Isaac, goes on to tell lenders, "Fair Issac is dedicated to offering FICO Scores to financial institutions via all three of our bureau partners to provide the most independent and fair representation of a consumer's credit picture. . .To meet consumers' credit empowerment demands, Fair Isaac will continue to offer both Equifax and TransUnion credit management services through our myFICO.com website."
Given that Experian advertises the most on TV pushing their website FreeCreditReport.com with the singer whose credit score got ruined, it's ironic that they would close off access to this important piece of information. You can see comments about the change on the forums at myFICO.com. Here's one excellent comment from that board: "The conspiracy theorist/paranoid side of me wants to think that this is EX giving into pressure from their lender customers, who, without an informed public with any real visibility into their own credit scoring, can approve, reject and set rates with little or no explanation to the applicant other than the standard "due to information in your credit report" bit."
That comment describes exactly what did happen when consumers could not see their credit score. Without full disclosure of credit scores lenders can play games with the credit offers they give you. Right now you're only cut off from Experian's credit scores, but if they get away with it, I'm sure the other credit reporting agencies will follow Experian's lead.
If you want to protest write your Congressional representatives. Congress needs to make it a consumer's right to see the credit scores used to make lending decisions. Right now a lender must give you your score when you apply for credit, but that score is given to you after you have gotten a credit decision. Consumers need to see that information before they start applying for a loan.
Lita Epstein has written more than 25 books including the "Complete Idiot's Guide to Improving Your Credit Score" and "Surviving a Layoff: A Week-by-Week Guide to Getting Your Life Back Together."
Reader Comments (Page 1 of 2)
2-05-2009 @ 9:26PM
R.W.J said...
THE ANSWER
Give our job back; What? Yes lets take a look at how, and why.
I believe that this is the simple answer to what many are calling the worst economy we have ever seen. Our Government thinks there is only one answer. This is far from the truth. Also they lead us to believe, many other not so true things. Lets look real close, as we journey back a bet. Lets go back to the start of, how and why and where this all started. We first saw great prosperity we saw new laws by our Government, one of a few, would make money or most any type of credit easily abstain, with or without credit or even LOW scoring. Many people with respect to include with my next statement, many have a desire and even a need, so to speak, to just have anything that others have or just really want nice things, one may deemed nice. I believe most of us all have a certain desire to fill like we are on top of the world, we are human, with many desires. However we get caught up in the moment, or the dream. I really would like to believe that this is human, and we just make mistakes, however we know what we are doing. We just believe its our right to take a chance at all cost no mater who it hurts. So one can fill like they are successful no mater the over all out come, they don’t seem to look or care how they are going to pay or keep the payments up on what they have bought. I would also like to believe that all of our elected officials care about our well being, however this is not all true they have there hidden self agenda, may it be money, power or statue. I believe its bigger that anything we have ever dreamed, total Government power though the collapse of the economy, and the division of the people.
You know there is no other country, or nation that could ever destroy this great country, America. So to achieve THIS! it would have to be executed from within our higher powers like our Government, and certain elected parties, and completed though out our country by the people, with the mind set of power, artificially inseminated with access to MONEY, with large housing equity, availability of low entrust rates, creation of big saving accounts, 401k plans- growing, as well the NYSE great performance. Remember the old saying what go’s up must come down, well-? We got lead to water and yes we drank it, trouble is it was some what poison. Let me expand, we went up against a well thought out plan, you see we humans here in this great country America, get on a high with money it makes us feel superior and we don’t know how to say no, bottom line GREED POWER, AND STATUE. Now comes the part when all these actions from the beginning of, to when the desired end of the creators reaction ends it, and not before. Then the beginning of ones hidden self agenda.
This point of view comes from many outlets with a lot of thought, as well the process of elimination to reach a sound point of view. I do believe in God, and relay on wisdom ask for and given from the holy sprit, this point of view will not fit to anyone anywhere without a just view. I consider myself a born again Christian. I also believe our answer of any problem was given to us long ago, Jesus Christ. It is with him we start it is with him we live, it is with him we prosper and last but not least it is with him we finish. I believe that our fore fathers had it right at the signing in seventeen seventy six, with the words IN GOD WE TRUST, and we have the right to take his promise gift. If as an individual we confess that we are sinners we believe in God, believe that Jesus Christ gave his life for remission of our sins, that God the father rose him from the dead and we accept Jesus Christ as our savor we are saved. I also believe that we must and should maintain a on going personal relationship with our savor Jesus Christ.
In regards to THE ANSWER I believe if we depend or Jesus Christ we win, as well as a nation, it is my hope and my prayer that we as a people and as a nation we would let our Lord and savor lead us to the right path. I believe as individuals we are to be held accountable for our actions, haven said all this I will conclude with the rest of THE ANSWER . If we are going to use tax payers money, and I don’t believe we should, however it seems our Government choose by the people for the people as well we as the people, are directed by God as wrote in the Bible in Romans thirteen, that we the people are to listen as well Obey our appointed leaders unless we are ask to go against Gods word.
To the point the tax payers money would be better used as a direct fix other than indirect. We have one half million Americans out of a job. How do we put them to work NOW! Simple let the company that laid them off put them back to work, give them there job back. How can we do this just do it, if our Government incest on spending tax payer money, then pay there salary. What? Yes you do the math, as well the logistics, we cannot turn back the pages of time, however we can start where a certain process began or ends, right? Think about it if all had there jobs back then the rule of logic has to take place, supply and demand. Also if any of the smaller business have gone then we create another or leave them out. Sounds simple, it is, I think some, may want us to think there is only one answer. WE THE PEOPLE don’t have time for any power pulls or power desires of others. We need to go back to work. Now let me answer your Question yes- it was working, up to the reaction of the action of power hunger, greed addition, hidden self agendas, plan was in play and is still in play, as well the fear generated wagon train and the greed of many of we the people, it is what it is, many are at gilt, and we may still have some of the greed, however we got the heads up on those now, so lets get back to the basic, we have a job, we spend we sell, we live better because we now can wake up to the wisdom, live and not need to fill like a million. We do what we as the American people have the right to do, live be free, dream with responsibility, and hold ones self accountable, with the chance to be what ever we want to be. GOD BLESS AMERICA WE THE PEOPLE.
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2-08-2009 @ 12:09AM
Nagrad said...
I didn't know they let people access the internet from the psych ward....
Also, please learn to use a spellchecker, I had to wade through some of the worst spelling and grammar I've seen in a long time to even understand what you were trying to say. Frankly, all i got was "Jesus Christ" and "Born again."
Greed is, sadly, a part of human nature. It is actually to some degree a part of our survival instinct, by having more we feel as though we are more likely to live securely, and procreate. As much as I'd like to believe in the ideal, that we could go to a truly free-market system, I don't have sufficient faith in the people to believe that there wouldn't be someone out there who would use the system to benefit themselves at a very high cost to others. Bernie Madoff's will continue to exist; I dont see much we can do to prevent that. Now, get your head out of the clouds, come back down to reality, and expand your horizons. Learn about other people. Listen to their opinions with an open mind, and maybe you'll have better understanding of the real world.
2-06-2009 @ 11:06AM
j said...
As a former manager at multiple car dealerships im now a webmaster, my income usede to be 100 k plus the credit crisis has crushed the economy scores must be disected everything negative has an explanation thats where a good finance manager comes in everyones scores are down doesnt mean your a bad person or that you wont pay
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2-06-2009 @ 10:38AM
brent said...
What does that mean? your entire post was in one sentence. how were you possibly the manager of a car dealership? I thought car dealers are supposed to be smooth talking.
2-06-2009 @ 10:15AM
J said...
The answer: Apply for a loan! For $15 dollars you can get all three done by a professional Loan Officer at any mortgage company. You get Experian, Equifax, and TransUnion - way better than freecreditreport.com - way better - because (I believe) the actual FICO score you get when applying for you loan is the middle of all the reporters FICO scores. Say you got a 690, 680, and a 710 respectively, 690 will be used for your approval number. Free credit report might be the one that reported a 710 - and you have an inflated and innacurate view of your credit score.
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2-06-2009 @ 1:19PM
Jon said...
This is quite possibly the dumbest bit of advice I have ever heard.
Credit 101: When you personally inquire about your credit through sites like freecreditreport.com there is no impact to your credit score. When a Lender/Bank/Utility checks your credit you get dinged with an inquiry which, in turn, lowers your credit score.
This is the major issue with the internet today, FALSE INFORMATION! People ranting on and on pretending to save the rest of us from certain misfortune while they hide behind a screen from any form of accountability.
2-06-2009 @ 1:38PM
Kenneth Lin said...
Applying for a loan to see your credit score will result in a hard inquiry with will lower your credit score. Try a truly free site like CreditKarma.com or Quizzle.com
2-06-2009 @ 11:06AM
Joe said...
@RWJ
TL;DR
seriously, wayyy too long and didn't read
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2-06-2009 @ 11:01AM
Martin said...
Has anybody noticed all these websites claim you get a free credit report but then try and sell you a service before you get it? That is ILLEGAL TETHERING the cellphone and cable companies got in trouble for it which is why they have to make cellphones available without a plan (they do jack up the price though). I have been tricked by these people so many times with their free offers. I suggest a lawsuit.
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2-06-2009 @ 11:40AM
Joe G said...
Where are the Regulators!!!!! They make changes that takes effect in 2 years giving the theives (banks) a license to rob us again!!! I guess this is the change... a kind of ....put it in your face and say go ahead try and do something. Maybe there should be campaign rules change baring banks from giving to politians and then maybe there will be some REAL regulations.
Shame on every elected official that is not standing up and correcting the mess. We are in for a long hard ride!
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2-06-2009 @ 11:47AM
Steven Adler said...
Def Karaoke Jam is the greatest band ever. "Surprise You're Gay" should win every Grammy this year.
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2-06-2009 @ 12:42PM
mioaroe said...
I heard it earlier at "millionaire friends. com", where celebrities, pro athletes and wealthy singles mingle. Many wealthy people are talking about it there. ...
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2-06-2009 @ 12:42PM
Khash said...
I recently applied for a mortgage refi and my bank is telling me that the credit agencies are showing items that are negative on my account and when I look at my reports from each, I don't see the same items they are telling me... I mentioned that to the banker and she says they get a more detailed report than what I get and I should contact Experian to fix them. How am I supposed to fix somethign that I can't see. Have you tried to contact one of these clowns... They make it almost impossible to get in touch with anyone. THIS CREDIT REPORTING NEEDS A REVAMP ALSO... TRANSPARENCY MY .........
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2-06-2009 @ 1:55PM
Campbell said...
Why would we need to regulate this? The way I see it, Experian only stands to LOSE value by making themselves irrelevant to half of the bargaining table.
All "board of shadowy figures" speculation aside, what's Experian's explanation for this? What benefit can they reap from NOT collecting consumers' money, and making their information irrelevant to bargaining? This policy will be the end of demand for their service.
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2-06-2009 @ 2:23PM
Lita Epstein said...
Campbell,
Experian was not making money from the FICO score reports. Fair Isaac, who runs the myFICO website, was making the money. I did try to call Experian, but they haven't returned my phone calls, so I have no comment from them as to why they did this. But, I do suspect Experian, whose building it's reputation with those ads about credit scores, doesn't want the competition from myFICO. The sad part for consumers is they won't offer the FICO scores at the Experian website either.
An ever sadder outcome would be if the other two credit reporting companies followed Experian's lead so no one would have access to credit scores before applying for loans.
Lita
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2-06-2009 @ 6:28PM
Demitra Wilson said...
Lita, we at Equifax know how important it is for consumers to understand their creditworthiness and how lenders view. Equifax has no plans to discontinue providing consumers with access to their FICO® score.
Demitra Wilson
Director of Public Relations
Equifax Personal Information Solutions
2-06-2009 @ 5:36PM
Demitra Wilson said...
Lita, we at Equifax know how important it is for consumers to understand their creditworthiness and how lenders view them. Equifax has no plans to discontinue providing consumers with access to their FICO® score.
Demitra Wilson
Director of Public Relations
Equifax Personal Information Solutions
2-06-2009 @ 2:32PM
Joe G said...
Yes your right their monies are not dirived from the consumers but they do get a fee from banks and financial instutions . Soooooooo by playing with consumers rates the financial institution can charge consumers a higher rate based on their FICO score.
Right now they can do whatever they want.
It's a back door to raising rates.
Open your eyes!!
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2-06-2009 @ 6:30PM
Screwed by Equifax said...
As someone completely screwed by your company and the hassle it takes for a consumer to find out what collected information these other companies are keeping on us, I'm completely offended by your 'above the fray' comment. All three companies are nothing more than leeches on society. They should be mandated to supply customer service to handle personal inquiries and corrections!
Due to errant reporting by your company (negative info on an ex hubby of a former girlfriend???), I was pleasantly informed that Chase had increased my 7% rate to 29.9% with no recourse but to pay it off. Your company would not give me the info so I had to go through a credit union (who knew about free credit reports back then?) and by the time you guys finally did wipe it off, my credit limit was lowered to the actual balance. Then the overdraft fees and eventually late charges kicked in. All in all, I spent 2 years trying to pay enough on it to make headway. After zero success, I gave up and negotiated a special 2% deal with them that's staying on my score for quite a while. Not to mention that I wasted nearly $10,000 in extra payments without seeing the balance drop.
Would your company pay that bill if I sent it to you? Do tell.
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2-06-2009 @ 6:31PM
Jason said...
Think the personal score they are pulling is crap? You should see what Experian did to my business credit.
I was at a 93 score and it dropped to a 52 because they revamped their scoring system. I have never been late on anything and have plenty of trade lines reporting. They had some notice of why they revamped the scoring system on their site and it went on and on about "how in today's business environment, we felt it was important to reflect the true score." what, was my other score not true?
On the business credit forums, there are some other pissed off folks. Experian is run by idiots.
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