Bankruptcy Risk Score (The Credit Score You Don’t Know About)

SavingAdvice.com ^ | 3/4/2006 | Jeffrey Strain

[Dallas59]

Interesting...

[FreePaul]

How do I get my Bankruptcy Risk Score to a level where I won't be "pre-approved" for endless amounts of credit. I'm tired of all of the regular mail and e-mail on the subject. My suspicion is that there is no level at which you won't get pre-approved.

[Ken522]

Articles like this one - which you will never see in a newspaper or magazine - are made available to us through Free Republic: Cheers for Free Republic and Jim Rob!

[geezerwheezer]

Have you ever noticed that in just about every major and minor city in America the largest buildings are bank buildings? They didn't get big by being nice and polite to their "clients" either. I've always liked what Harry Truman said about banks..."they will loan you money when you can prove you don't really need it!" Kinda sums up what they still do.

[ccmay]

if you use one of the many credit search services like Lending Tree that sends your information to lots of brokers and those brokers all check your credit it records on your history negatively because it appeaars you are "shopping for credit".

The credit bureaus say that this is not the case. No matter how many car (and home) loan inquiries, they are treated as only one, for a period of two weeks or so after the first inquiry. They realize that people are shopping around, and that they intend to buy only one car or house rather than 50.

-ccm

[E. Pluribus Unum]

Well, of course lenders calculate and use a bankruptcy-risk factor when lending money. They've always done it. Lenders have always charged higher interest to higher-risk borrowers.

If it were your money, wouldn't you?

[Bloody Sam Roberts]

Have you ever noticed that in just about every major and minor city in America the largest buildings are bank buildings?

Yeah...but the best looking ones are the funeral homes.

[PeterPrinciple]

When the last new bank, church and funeral home gets built, then I will know the economy is going down the tubes. Right now my economic barometer says things are gong ok.

[bigfootbob]

You are probably correct, unless you are a chronic bad check writer. One of my former employees started receiving "pre-approved and guaranteed" auto loans while still in court waiting for his Chapter 7 discharge, (medical issues), telling him he can be driving a new car at discharge! Within 30 days of his discharge he was receiving preapproved unsecured Visa & Mastercard offers.

This was after the recent bankruptcy regulation overhaul! Unbelievable.

[pointsal]

My goodness...the bankers are PROFILING....

wonder if Homeland Security can rent their program???

[pointsal]

bankers have the least at risk and the greatest opportunity to really wreck your business....

[jamaly]

Bump for later.

[TampaDude]

FreePaul,

Of course banks will send recently discharged debtors those preapproved offers...they know the guy can't file BK for another 7 years!

[kitkat]

***I've always liked what Harry Truman said about banks..."they will loan you money when you can prove you don't really need it!" Kinda sums up what they still do.***

Sorry, but I have to disagree with you there. What sums up banks today is that they have trained their people to SELL, SELL, SELL. Your friendly neighborhood banker no longer cares about your needs. He cares about the commissions the bank gets for selling investments.

[kitkat]

***Of course banks will send recently discharged debtors those preapproved offers...they know the guy can't file BK for another 7 years!***

Absolutely right! And they also know that someone who has been in bankruptcy may spend foolishly, be unable to pay their credit cards, and therefor be billed for many extra penalties. It's good buisness for the banks.

[BunnySlippers]

This article in online ... not from FR. It was apparently written by somwone on a forum who identifies himself only as Jeffrey and provides no information about his credentials. So how imprssive can it be?

[freedumb2003]

I registered with the national do not call list and with a mail version of the same thing.

I get almost no mail of any kind now, since I do all my bill payment and banking online.

[bigfootbob]

Don't make sense to me, someone still has to pay the collection fee. (Us) I assume of course, many are lousy money managers, not victims of catastrophic situations.

[jack308]

It could be worse. Like Homer Simpson, you could be getting "pre-declined" letters.