No More Experian FICO Scores for Consumers
Posted by Cap in Credit Related |In a lovely Valentine’s gift to consumers, Experian has decided to pull out of its agreement with Fair Isaac and will no long allow Fair Issac to sell FICO scores based on Experian’s data to consumers.
This is actually a fairly big deal, as lenders will continue to be able to get FICO score based on Experian reports through Fair Isaac, but consumers won’t be able to do the same. It puts us, the consumers, at a fairly big disadvantage — especially when we apply for credit from a lender that uses Experian’s data to determine credit worthiness. Want to check your FICO score based on Experian before you apply for credit? Not gonna happen.
The decision by Experian will come into full effect on Feburary 14, 2009. So if you need your Experian FICO score for whatever reason, you should check your Experian FICO score now before it’s too late. (Discount code for 20% off is embedded in the link, appears at checkout).
22 Comments to “No More Experian FICO Scores for Consumers”
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February 5th, 2009 at 3:35 pm
Whaaaaaaaaaaaaaaaat? You’re right Cap, this is a big deal. And frankly, an outrage. This effectively locks Experian scores up, so that lenders may see them, but not consumers themselves. I’d like to say this is a violation of my “rights,” but I’m not sure what right that really would be. I’m not happy about it, though.
February 5th, 2009 at 4:59 pm
This is UNREAL!
February 5th, 2009 at 8:15 pm
This is really bad, since interest rates are often based on your score. They know your score but you don’t. They offer you a deal based on that score, and you have to hope they are being honest. Not good at all.
February 5th, 2009 at 10:00 pm
No, you have no right to know how to manipulate a “behavioral score” in order for a lending institution to properly access it’s risk in lending you money. Precisely why we are in the situation we are in today. Loan brokers do what they call a rapid re-score. Essentially, you go and apply for a loan, the broker checks the banks Fico requirment, sees that you fall below them and then runs a Fico score simulator to see what action you need to take to immediately pick up your score. Usually requiring you to go out and barrow money from family and friends to pay down over-extended credit cards, then they do a rapid re-score with the credit scoring company(Oh, Mr. credit scorer, their must be some mistake with the information that you pulled, why don’t you run it again and you’ll see that he paid those credit cards a while ago)-they do and lo and behold you score goes up, you get the loan, you pay your family and friends back, the bank just made a loan to an over extended barrower(though it has no idea) and the broker is off to Las Vegas with his $10,000 to party-now refer him more clients because to you he’s great, he was able to do what noone else could and it goes on and and on and on. It’s a “behavior” score, if we “behave” conservatively-our score will be high.
Don’t get me wrong, I am an expert at this because I do it myself for my own score. But, it is not fun anymore, it used to be fun back when few people knew how to do it, but now every Tom, Dick and Harry can do a credit score fix and unfortunately it’s now gotten out of control.
Written by: A CFP, A former Bank Vice President, and at one time a Mortgage Broker.
My favorite quote: “A victory, with dishonor is a big loss.” Unknown(to me)
February 5th, 2009 at 10:16 pm
But Experian uses the Vantage score, too.. I actually enjoy it much better.
So, I don’t think its a perfect loss. At least for me.
February 6th, 2009 at 7:14 am
@Paula – I believe they have to share your score with you, at least with home mortgages they do. It’s one of the disclosures, it says we ran your credit, here is your score. Yes I suppose they could fake the document, but that is more work and they could get caught. You can get a general idea of your score from places like credit karma for free. Then at the car dealer etc ask them to show you the score they used. Are they similar or not? You should have a general idea if you have good credit or bad credit.
February 8th, 2009 at 3:35 pm
It sure would be nice if the credit reporting agencies would be consumer focused instead of banking-industry focused. Who is their ultimate customer anyway?
February 8th, 2009 at 7:52 pm
grow up… just because experian isn’t letting you get your fico score through them doesn’t mean you can’t get it anywhere else. and, chances are, when you go into a bank for a huge loan, they will draw your credit report right in front of you and show it to you and explain to you what’s on it that qualifies or disqualifies you for a loan, so you get to see the score anyway. when i went in to get a home loan, this is what my lender did for me. she explained that i needed to raise my score so many points and how i could do it and what on my credit history was affecting her decision to turn me down. if your lender won’t do this, don’t use them.
February 9th, 2009 at 6:42 am
No where have I seen information that Experian will not be offering their score to consumers themselves. I believe they will still do so — they are merely thinning out the competition to get people to buy their product. If this is incorrect please let me know through this site.
Actually, I wish one of the three would close out the public from getting scores. That would finally force the government to require offering yearly scores along with reports. Yes, you can correct your report; but, you don’t know what lunacy is used to make up your score — a far more important piece of information. When one realizes your scores can be lowered because you pay your bills too quickly, you know that credit scores are now instruments to maximize corporate profits not just ones to minimize the risk of non-payment.
And a comment for delusional ex-morgage brokers and ultra-free market capitalists out there — companies can’t have the right to share arbitrary (i.e. manufactured) info about you among themselves that can literally ruin your career and economic life if you don’t also have the right to absolutely bar them from sharing that info or its derivatives in the first place. I use manufactured non-pejoratively and as a proper description of credit scores as they are not basic data, but created numerical entities.
February 11th, 2009 at 7:23 am
Rich, I think it is incorrect. Experian will still sell consumer a score, but it is not a FICO score. It’s a score derived from their own formula, which is not a true FICO store (it’s sometimes called a FAKO because it’s not… real.) Real meaning FICO scores, which are the standard that lenders use. Lenders don’t use those approximations of scores that credit reporting agencies will sell to consumers upon request. (Non-FICOs.)
Further information is here:
http://www.startribune.com/business/39118047.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aUU
February 11th, 2009 at 1:05 pm
brooke b: you do have a point that when you go to a mortgage lender, they will usually show you your score upon request and tell you why you’re getting the rate you’re getting (or why you’re being denied). But the issue here isn’t only for home loans, as that’s not the only type of credit we use… what about credit cards, student loans, personal loans, auto loans, etc. ?
rich: as 444 has mentioned, that’s a bit incorrect. although Experian will continue to sell their own formulated score to consumers, it’s slightly a moot point since lenders don’t use Experian’s computed score for their lending decisions. But you’re right though that this is purely about weeding out the competition, as Fair Isaac’s offering is a competition to Experian’s own product.
No one really loses here but the consumers.
February 12th, 2009 at 10:09 am
Financial institutions can release credit reports to the consumer when they apply for a loan. Just ask for a copy. Your FICO score will be on it.
February 12th, 2009 at 1:33 pm
This isn’t so much of a big deal i think because you can always get your credit score through other sources. MyFico isn’t the only one that gives this service to consumers; not to mention aside from Experian there is Equalfax and Transunion.
February 13th, 2009 at 8:05 pm
Eat my shorts
February 17th, 2009 at 5:57 am
My Insurance Company uses Experian to determine my rates, so thats easy, I’ll just look for another Insurance Co. that doesn’t. Experian, and my Insurance Co, and do business with consumers that don’t care. I care.
February 24th, 2009 at 1:32 pm
Tell this CEO jerk
Mr. Donald A. Robert
Experian
475 Anton Blvd.
Costa Mesa, CA 92626
February 25th, 2009 at 8:35 pm
FICO is as fake as the others so called companies who has created a get rich business out of consumers mis-fortune,mis-information.
mis-data,misleading/wrong indentification. Causes by theft and/or………mis-formalution
March 5th, 2009 at 9:12 am
OK, if Experian is getting secretive, how do we find out what is determined by our Experian score and simply do not patronize them?
Also, I’m ALL for a consumer based credit reporting services. So why doesn’t someone with money back those with the knowledge and fill a much needed niche? This is a void waiting to be filled.
March 9th, 2009 at 6:55 am
Less information is always bad for the consumer. Let’s hope this reverses after collective outrage. It is always a good idea to know your credit score and check your credit history once a year.
Follow me on Twitter @family_finances.
March 17th, 2009 at 10:54 pm
My wife still gets it thru her employer. There was a brief period with not service but restarted again. Wonder why experian has taken this decision. It’s a good revenue for them to cater consumers.
March 29th, 2009 at 8:32 pm
Posted on experians web site.
Experian’s recent negotiations to renew the master contract with Fair Isaac, which governs the sale of FICO scores by Experian to its clients, included discussions about Experian’s continued participation in myFICO. In the current master agreement between the companies, Fair Isaac (FICO) prohibits Experian from providing FICO scores directly to consumers, and it is a point in the contract that we would have liked to change.
Experian made every good faith effort to negotiate business terms that would be fair to both companies. However, Fair Isaac insisted on unreasonable terms and demands which they knew Experian could not accept, and damaged further the partnership between Experian and FICO. They then very quickly implied to the public that it was entirely an Experian decision. By not negotiating in good faith and knowingly insisting on unreasonable demands, Fair Isaac is ultimately responsible for Experian not providing its data to myFICO.com.
July 13th, 2009 at 8:38 pm
I think everyone should be allowed their F.I.C.0.
and their free credit scores. After all it does
belong to them and you are handling the customers
money. I have paid my bils faithfully and I think
I am justified in my own free credit score.
Sincerely, Mary K. Fiessinger