• Jeff Michael: Repair Your Credit and Knock Out Your Debt

    Jeff Michael: Repair Your Credit and Knock Out Your Debt
    I highly recommend this book because I wrote it.

  • Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds

    Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds
    I have about a dozen entries in this book.

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Suze Orman calls the FICO score, your most important Financial numbert. When I went through her Financial checkup program for the Young Fabulous and Broke (I'm all three) her system told me it's the first thing I need to work on. More than getting an emergency fund together or increasing income and decreasing spending.

I for one am not buying into the FICO game. I need to do a lot. I am right now concerning myself with stablizing my financial base. As I pay down my problem debts (through a combo of my own effort and concessions worked out through my DMP), and get some money saved I'm sure my FICO will go up. I am not going to obsess on it. I've seen other sites where people talk about and obess on every 5 pt change. The marketing of the FICO score helps keep us in a debt mentality. If we get away from the "Debt Mentality" our finances will improve even if our FICO does not.

Well I had the experience where my FAKO was 70 points different from my FICO

What diference makes FICO in this market in which we have the worst economical era since the Great Depresion.

Even though the "Drug Test" comment is probably spam, this is an important question I want to answer.

We have what s/he calls the "worst economical era since the Great Depression" precisely because FICO scores weren't taken seriously. If home lenders had stuck with the FICO score as a measure of a borrower's likeliness to repay, the subprime market wouldn't have exploded like it did, leaving other parts of the market vulnerable for collapse. Rampant lending to people in spite of their low credit scores is part of the reason for the mess we're in.

Now that the house of cards has collapsed and banks and investors have been burned by poor underwriting standards, you can bet that from now on lenders will expect their borrowers to have even better credit than before. So this financial crisis has made your FICO score MORE important, not less.

Suze Orman has way too many teeth in her mouth...

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