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Originally posted by mccoyred
I was just thinking about this the other day.
First, why are there 3 credit bureaus? One big credit bureau would be easier for creditors and consumers to deal with.
Secondly, why is the formula for determining your FICO score so darn convoluted? If the average consumer could determine how each action would definitively affect their score and, in turn, what their score would affect, I am sure more people would and could do the right thing.
Maybe some entrepreneur could create some type of credit score program like TurboTax is for taxes. Consumers could put in their credit activity, even hypothetical scenarios, then out pops the resulting credit score! We all know an educated consumer is the best consumer.
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There a three for equity and fairness....as if, but anyway, the formula for FICO's are different for each bureau and in some cases each credit entity. That's why when you look at your FICO's each score may be different. For example, Ford Motor Company may use what is called an auto-enhanced credit score to determine credit worthiness whereas Toyota may use Transunion. Now Suze Orzman, has come up with a program called Scorewatcher and for 79.95 per year or 49.95 for a one-time use, it will monitor your score and tell you what you need to do to improve it.