FICO '08 has started!

Enigma · 09-04-2007, 10:33 PM

Good overview here:

Consumer Alert: FICO Scores Dropping Authorized User Accounts - Credit.com

Quote:

How many people will be impacted?
Fair Isaac has reported that 30% of the population has an authorized user account listed on their credit reports. That means that between 60 and 75 million consumers will be impacted by this change.

It has already started with USAA. I have a CC with USAA. In todays mail I received a Change in Terms Notice. It says in part, effective upon my cards anniversary date, USAA will only issue AU accounts to immediate family members in the same household. They said that as of the anniversary date all AU accounts will no longer be valid and that in order for new cards to be issued the primary card holder will need to supply USAA a list of immediate family members along with their SSN.

The new TOS also states that all credit lines will have a FICO scoring adjustment. I called and learned that the "adjustment" is higher scores. To qualify for a CC, previously a score of 620 would do, now it is 760. Auto loans without a 30% down payment is now 780 and mortgages with 20% down is 780.

The CSR rep I spoke to said that USAA will increase its monitoring of it's credit lines. I take that to mean more frequent account revew pulls more Universal Defaults and account closures.

hannah · 09-04-2007, 10:46 PM

Quote:

Originally Posted by Enigma

I take that to mean more frequent account revew pulls more Universal Defaults and account closures.

Know any good class action attorneys?

Pale Rider · 09-04-2007, 10:50 PM

Quote:

Originally Posted by Enigma

Good overview here:
To qualify for a CC, previously a score of 620 would do, now it is 760. Auto loans without a 30% down payment is now 780 and mortgages with 20% down is 780.

So, basically, they are doing away with their loan department?

Who has a 780 and 20% down?

Enigma · 09-04-2007, 11:10 PM

Quote:

Originally Posted by Pale Rider

So, basically, they are doing away with their loan department?

Who has a 780 and 20% down?

It is my understanding that the OCC, FDIC, and the Credit Union folks are putting pressure on banks to rid themselves of sub-prime loans. In my area 20% down will run you $40-70K.

But USAA is not a major player.

Hedwig · 09-04-2007, 11:27 PM

I'm glad I got my credit card, and I hope I don't need a car loan soon.

I have high utilization on two cards because creditors were dumb enough to offer me cheap money for the life of the transfer. (USAA is actually one of them. One other was dumb enough to give me .99% for life and is now desparate to get me to charge something to the account). That might keep my score below 780. The last I checked it was like 768, it should go up a little as the utilization goes down when I make payments. But since I'm paying minimums on those and investing at a higher return, it may take a while to get below 50%.

Hedwig · 09-04-2007, 11:29 PM

I might put 20% down on a car, which keeps me from ever being upside down, but I don't think I'd do 30%.

Enigma · 09-05-2007, 12:30 AM

Quote:

Originally Posted by Hedwig

I might put 20% down on a car, which keeps me from ever being upside down, but I don't think I'd do 30%.

At 20% I could not afford the car I have now.

spinn · 09-05-2007, 12:38 AM

why would anyone buy a new car when they depreciate 20% per year??

Pale Rider · 09-05-2007, 12:45 AM

Because I don't want something someone else drove with no oil or trans fluid.

Enigma · 09-05-2007, 01:14 AM

Quote:

Originally Posted by spinn

why would anyone buy a new car when they depreciate 20% per year??

I lease.

Enigma · 09-05-2007, 01:16 AM

Quote:

Originally Posted by Pale Rider

Because I don't want something someone else drove with no oil or trans fluid.

Been there, done that and have several t-shirts.

But not anymore.

Hedwig · 09-05-2007, 01:51 AM

I buy either new or very low-mileage, preferably from someone I know.

Why? Because I drive 40-50K miles a year and I can't afford to buy a car I will start putting money in right away. I get something with a warranty that I can get repaired at little or no cost. I go to my mechanic for all service, and he keeps good records. Then I have reliable transportation until the wheels fall off.

When I was having my financial crisis, I bought some older cars. I missed work, almost lost a job because my car kept breaking down. Not to mention that the only way I could pay for the repairs was on cc that charged 30% or so interest.

Sometimes it's better to take the depreciation. As I've said many times, you have to look at the entire situation and it's all about building wealth. I may build more wealth making car payments at 5-6% with no repairs than the same amount as the car payment in repairs every month at some exorbitant interest rate.

I'm not ever going to sell the car anyway, so who cares. I'm better off with a less expensive new car than a used car that may cost almost as much and has to be maintained.

There is no one-size-fits-all, no one answer to lease or buy, new or used. If there were we'd be in a terrible shape.

I'll never lease because of the miles I put on the car.

radman159 · 09-05-2007, 04:39 AM

I can't believe the Mortgage scam has hit Credit cards and car loans I guess credit is getting tight I fired USAA several years ago after an accident and I guess I'm glad that I don't have any accounts with them. 780 eq score and 20-30% down for a car loan WTF

centex · 09-05-2007, 09:56 AM

Quote:

Originally Posted by spinn

why would anyone buy a new car when they depreciate 20% per year??

Such is not the case in reality. Otherwise I would not be receiving unsolicited offers on a seven-year old truck that are within $10K of what I paid for an ordered vehicle delivered with less than 7 miles on the clock.

jlynn · 09-05-2007, 10:40 AM

Quote:

Originally Posted by centex

Such is not the case in reality. Otherwise I would not be receiving unsolicited offers on a seven-year old truck that are within $10K of what I paid for an ordered vehicle delivered with less than 7 miles on the clock.

Exactly. I get offers on the jeep as well, for about 3/4 what I paid for it 8 years ago.

yvonne9782 · 09-14-2007, 12:00 PM

Hello to all in the credit forum!!! This forum has been a big help to me. Thanks to everyone for their input!!

psaysofavril · 02-27-2008, 03:47 PM

I guess I'll be using public transportation for a while.

VexatiousLitigant · 02-27-2008, 04:58 PM

Didn't realize this was so old. 760 FICO just to get a credit card? Sweet jebus.

I think the 780 FICO with a 20% down payment was a typo. The previous part of the sentence was a car loan WITHOUT a 30% down payment. Makes more sense for it to read 780 FICO to obtain a car loan without a 30% downpayment or a mortgage without a 20% downpayment.