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Falling FICO!

January 11, 2008

FICO or FICOR is a “credit bureau risk scores” produced from models developed by Fair Isaac Corporation. Fair Isaac credit bureau scores are used by lenders and others to assess the credit risk of prospective borrowers or existing customers, in order to help make credit and marketing decisions. These scores are derived solely from the information available on credit bureau reports.

Who Wants Cheaper Auto Insurance?

And guess whose credit rating is probably at risk? Maybe not today, but inevitably the King od the financial mountain is going to find borrowing money more and more difficult. Can you say the United States? Well duh! It’s not that we’ve not seen this coming for decades.

The triple-A credit rating that’s enjoyed by the United States is under threat of being lost. An American citizen cannot continue to spend and buy things for which they don’t have the resources to pay back the debt. And guess what. Neither can the United States- without needing to seel some assests or pay more dearly for the loans.

Is there any wonder gold is soaring? It’s real money- not fake fiat paper.

The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody’s, the credit rating agency, said yesterday. And do you think Congress is going to do anything about social security or soaring healthcare costs? If they do anything it will be to promise MORE of the same.

Have you read Hillary Clinton’s health care plans?

Is there any wodner that the stock market started 2008 in the worse than any year since 1932? The warning over the future of the triple-A rating - granted to US government debt since it was first assessed in 1917 - reflects growing concerns over the country’s ability to retain its financial and economic supremacy. Hello! Is this new news to anyone?

As I opened up my lap top this morning the headlines spoke of Merrill Lynch needing to write off $15 billion, American Express taking a $440 million dollar write off for late paying and bad debt, and Bank of America maybe buying out Countrywide Mortgage lest they go bankrupt (newsflash: they really already are).

Who wants to cut back? No one. We want a $50,000 Mercedes rather than a $2,500 Ratan Tata, but what we want and what we can afford just may be two different things sooner than we think. The difference in an 800 FICOR score and a 500 score is huge. Can you say 5.4% loan verses a 10.2% loan?

Written by Ernie · Filed Under Daily Commentary 

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