I Was an Entrepreneur Masquerading as an Employee #3
The FEEL Center Project LLC & Financial Fitness Gym is and could just be the resource platform needed to provide individuals with the necessary tools, skills and knowledge related to this monumental task of protecting our financial and personal data which is being shared at an alarming rate!
In several of my post I have mentioned how our financial and personal data is being shared, compromised, breached, corrupted, and impersonated leaving us the unsuspected individuals holding the bag. Not knowing where to turn, and should we, having to fight our way through a mountain of unnecessary red tape to get the matters resolved.
Here is the answer to a hypothetical I posted in my I Was an Entrepreneur Masquerading as an Employee (part-2) about a hypothetical individual FICO score and if it was correct. Just in case you forgot the hypothetical situation, or didn’t get the chance to read it, I provided it once again.
Hypothetical 2; 65 % of the country!
Out of the 5 credit scoring factors; you have 8 negative over a period of 6 years. 3 of the negative items are over 7 years old and this hypothetical individual lives in a state where the statute of limitation is 4 years.
Of the 5 remaining negative items 1 30 day late, 2 60 day late in the last 3 years! The last 2 items are collections you have agreed to make payments on.
Clearly all 5 credit scoring factors may have been impacted by this hypothetical.
The hypothetical individual pulls their credit score, because they are making a bit more money and it’s time for that new ride. The score is 620 score!
Is this score correct?
There is one major thing incorrect with this hypothetical individuals FICO credit score! Remember the FICO credit scoring system take 5 things into consideration when generating a FICO credit score.
The most disturbing thing about FICO is it doesn't take manipulations, errors, inaccuracies or outdated information into consideration, which it should if it’s going to call itself a creditable and reliable institution.
The manipulations, errors, inaccuracies or outdated information are protected by laws which should be upheld by FICO and it isn't.
The impact FICO has on individuals lives could and is devastating in relation to credit and lending. Getting it right should be FICO’s first and foremost priority; clearly it’s not, profit is as with the majority of most global entities!
FICO has its headquarters in San Jose, California and operates in nearly every part of the world.
This credit score is incorrect because?
Three of the items are over 7 years old. According to FCRA § 605 Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
The three items over 7 years should have been removed by the credit reporting agencies, therein making the FICO credit score incorrect.
The statute of limitation in the State in which this hypothetical individual lives is 4 years. The hypothetical individual could have had the item removed themselves had they understood credit reporting.
FICO never reviles which of the 5 factors are being impacted, because the FICO scoring method is proprietary information. Not knowing how much each of the 5 FICO scoring factors weights, by following the 5 FICO credit scoring factor method you the consumer, banks, credit and lending institution can never generate an accurate or complete credit score, it’s just a guess or a FAKO score.
What about FAKO?
FAKO score is a term that refers to any credit score that's not a FICO score. These FAKO scores are for educational purposes only and don't necessarily reflect the score. This hypothetical individual never had a fighting chance, just like most individuals when it comes to credit scoring.
Consumers are under the impression, when they purchase or pull their credit scores they are getting the real deal. A large percentage of the time we’re not getting a FICO score. If you purchased your credit score from anywhere but MyFICO.com, then it's a FAKO score.
Even a FICO score purchased online may not be identical to the one your lender uses because there are also many versions of the FICO score, versions for various industries, and previous versions introduced years ago.
Your score is not a reflection of who you, because there are so many models and methods. Your data is the real reflection. Not all mirrors make you look the same, so goes it with your credit score.
Don’t get taken by the notion that your score is what it is. Get financially fit on yours and your loved ones personal and financial data. Protect it, secure it and when you need it, it will be there for you.
ONE DAY CLOSER TO CHANGING THE WORLD