Wednesday, May 13, 2009

FICO Frustration

At what point should a person's FICO score take a back seat? In my line of work I cannot tell you how often I hear someone say "I don't want to ruin my credit." Okay, I get it. But listen Mr. & Mrs. keep my credit perfect no matter the cost, your electricity has been disconnected. Credit scores have their place but they are not to be worshipped (I personally don't care about it that much, but that's just me). You know you need to dethrone King FICO when you ...
  1. Allow your car insurance to lapse because you used the money to pay credit cards.
  2. Illegally connect to your neighbor's electricity because yours has been disconnected.
  3. Go to restaurants, eat, then plant something in your food so that you won't have to pay for the meal.
  4. Sell the title to your vehicle, the only one you have to get back and forth to work.
  5. Pawn your wedding rings

...And for what, so that you can pay the creditors and not have a late payment on your credit report.

Even though I don't manage my credit score like a pit bull, I do review my credit report at least annually. Having been a victim of identity theft, I understand the importance of knowing what's on my report. It saddens me to know that people are so caught up in protecting their credit score that they'll prioritize paying creditors over the necessities of life ... such as utilities and insurance. Trust me, I do get the importance of a healthy credit score, but when is enough enough?

***p.s ... I didn't make any of those examples up; they are all real life situations.


jpkittie said...

that sucks - for me - at this point, all of my 'extra' above & beyond minimums has been going into my EF. That to me is more important then my Fico ~ We have a house, 2 cars PIF (one with 60k miles & one with 26k miles so we won't need any soon) What else do we really need that would require a great FICO right now, you know?!?!

Ms. MoneyChat said...

i agree. it's like we're living in the FICO matrix or something. everything we do is all about protecting the FICO score. call me crazy but i just wouldn't allow my utilities to get turned off when i have the money to pay it. there's no way that i'd put the credit cards ahead of buying food or paying utilities.

Shtinkykat said...

Oh goodness gracious. FICO is supposed to measure your financial responsibility. When you're stealing electricity from others, the FICO score is meaningless. Some people truly are warped.