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Healthy Teeth as You Age. Page 3

Trivia

Icy Iceland. Page 3

2013

Elite Credit News is a monthly newsletter from your friends at Elite Credit Care Dear Friend, We hope you enjoy this months newsletter. It is a great time to spend outdoors with your family! Respectfully, Attila Thiry

Credit News
The Newsletter Thats Both Informative and Fun!

Volume 1, Issue 27

Contact Us Now To Get A Free Consultation! (Valued at $200) | 877-604-4489 Answers to the trivia:

Is The VantageScore Credit Score Really a Threat to the FICO Credit Score?
By Attila Thiry In the world of soft drinks there are countless players, each enjoying their own slice of market share. Coke, Pepsi, and the countless other brands fight for our consumption. The same thing applies to shoes, cars, beer, airlines, and car brands. But in the world of credit scoring there exists only two real players: FICO and upstart VantageScore Solutions. First some background FICO has been around since the 1950s and their credit bureau based credit scoring models have been available since 1989, with the first being installed at Equifax. FICO enjoys a solid position as the apex predator in the world of

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7: 20 years old. 9: Icelands legislative assembly. 6: Icelandic. 2: Lutheranism. 5: About 13 percent. 1: Reykjavik. 4: 20 hours of sunlight. 8: Lazy Town. 3: Elves. 10: Fishing.

Is The VantageScore Credit Score Really a Threat to the FICO Credit Score?
continued from page 1 is seems like VantageScore was in business for about 8 minutes before FICO sued them in Federal court for a variety of alleged misdeeds. Rather than bore you with the lawsuit particulars Ill let you know that all charges were dismissed. Still, does that mean VantageScore is going to become to new FICO? Its doubtful, but not because the VantageScore credit score is a substandard scoring model. From what Ive heard its actually pretty darn predictive, which means it stands toe to toe with FICO as being an effective risk mitigation tool. The real reason the VantageScore credit score wont flip the market in their favor any time soon has more to do with market dynamics and the cost to convert than it does credit score quality. First off, the lenders that use FICO scores would likely only switch to the VantageScore credit

score if A) it proved to be more predictive for their use B) it helped with their profitability C) it didnt cost and arm and a leg to convert to the new score and D) the cost of the new score wasnt higher relative to the existing score they were using. During my latter years at FICO we introduced a new suite of credit scores called NextGen. NextGen was a credit bureau based FICO score, just like the ones that have been used since 1989. But, NextGen was a Ferrari in comparison to the classic FICO scores. They performed better which meant lenders would be able to avoid more bad borrowers with that new score. So, the market converted to the newer model, right? Wrong. Despite the fact that FICOs NextGen score was demonstrably better than the classic FICO score the market didnt convert a critical mass of volume. So here you have a model that performs better thats also built by the same company as the model youre currently using and they still couldnt supplant the classic FICO score. The reason: its expensive to switch credit scores.

Swapping in a new credit score for an older credit score isnt like replacing a toaster oven. Most large lenders use FICO scores as a component to other custom developed scoring systems. Think of it this way the FICO score being used by a large lender is like a gasket deep within the engine of your car. Its important, but its not worth replacing unless its really broken. The cost to replace a score being used within another score is actually very much like replacing a leaky gasket. The part (gasket) costs a few bucks but the labor (rebuilding and revalidating your custom credit scores) is very expensive. Because of this most lenders are content to use an existing score that is doing just fine because its not broken. So, back to the VantageScore v FICO question posed in the title. Yes, VantageScore will undoubtedly take some of FICOs market share. In fact, it already has. According to Experian 1,300 lenders are getting the VantageScore from them. Those are scores that used to be FICO scores.

credit scores and has done so for over two decades. Who uses the FICO scoring technology? Well, it seems like everyone. According to FICO, 9 of the top 10 companies in the Fortune 500, 2/3rds of the top 100 banks in the world, 90% of the largest financial institutions in the United States, 100% of the largest credit card issuers in the United States, 400 insurance companies, 1/3rd of the top 50 retailers in the United States and 7 of the top 100 pharmaceutical companies all use FICO scores and/or other tools. For those of you in the mortgage business you know that all of the RMCRs (Residential Mortgage Credit Reports) that you pull have nothing but FICO scores on them. Thats

nothing! 100,000,000,000 (thats 100 billion) FICO scores have been sold, to date. Almost all credit card issuers use the FICO Bankcard score to prospect for new customers, set terms on newly opened cards, and for ongoing account management. Almost all auto financiers use the FICO Auto score to determine whether or not they want to do business with an applicant and under what terms. It seems like theres no room for another credit score, or is there? Enter the VantageScore credit score designed and developed by VantageScore Solutions and the credit reporting agencies. VantageScore Solutions has been around since 2006, which makes them an infant in the world of credit scoring. This is sarcasm but
Continued on back page

Also in this issue

This Month in History pg 2 Internet Tidbit: Outgrow.me pg 2 By The Numbers: Hockey in the U.S. pg 3 Quotes to Live By pg 3 Quotes to Laugh By pg 3

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We hope you enjoy this months newsletter. Check out for the EXCLUSIVE content that we have put together just for YOU! Also visit us at: EliteCreditCare.com

This Month in History:

December 5, 1901 Walt Disney was born in Chicago, Illinois. December 10, 1964 Dr. Martin Luther King Jr. was awarded the Nobel Peace Prize. December 15, 1791 The Bill of Rights was adopted. December 19, 1991 The most expensive movie made (up to that time), Titanic was released, going on to win 11 Academy Awards, including Best Picture.

Dear Friend
Dear Friend, How Retail Credit Cards Can Wreck Your Credit This Year Warm up your engines because the busiest shopping season of the year is only a few short weeks away. Many shoppers will spend more in the next two months than they spent over the first 10 months of the year. And, much of that shopping will be done using credit cards. The question is, are some cards better for protecting your credit than others? When you shop at the mall this holiday season youll inevitably be asked if youd like to open a new retail store credit card to use for your purchases. And, the deal will be sweetened with offer of 10 to 20 percent off your purchase that day. Its tempting, but there are several reasons you should decline their offer and choose to use an existing general use credit card over a newly opened retail store card. Interest Rates I know interest rates have no influence on your credit scores but its still important to point out that rates on retail store cards are considerably higher than those on general use credit cards, like Visa, MasterCard, Amex, and Discover. General use cards have rates, on average, around 15 percent. Retail store credit cards have rates that are well into the 20 percent range. Low Limits Low credit limits are very dangerous for your credit scores. Retail store cards, when newly opened, almost always have limits at or below $1,000. That means even modest holiday shopping can leave your card heavily utilized and we all know that a high debt-to-limit percentage can leave you with lower credit scores. General use credit cards can have limits well above $10,000 making your purchases much less problematic. Inquiries and New Accounts Think about what happens when you open a new retail store credit card (or several of them) in a short period of time. First off the card issuer is going to pull one of your credit reports. That means at least one new retail card inquiry, and more if you open several accounts. Credit card inquiries are among the most damaging because they are not subject to FICOs consumer friendly inquiry logic. Second, you are going to end up with new accounts likely appearing on all three of your credit reports. That means a lower average age of trade, which can lead to lower scores. This can be compounded by opening several cards in a short time frame. This is going to impact all three of your FICO and VantageScore credit scores because the accounts will likely show up

on all of your credit reports. Conclusion: The moral of the story isnt to avoid credit cards this holiday season. But, you should be cognizant of the potential damage youll cause by choosing the wrong plastic. And while you may not be in the market for new credit in early 2014, you just never know and you want your scores to be in tip top shape, always. That means pulling out an existing credit card that has a high limit and leave the retail store cards on the sidelines. Myth Buster: Young People Dont Manage Credit as Well as Older People The Credit Card Accountability, Responsibility and Disclosure Act of 2009 made it illegal for a credit card issuer to give a credit card to anyone under the age of 21 unless they had a job or a co-signer. The reason: Young people are
irresponsible users of credit, right?

Trivia Quiz: Icy Iceland

1. What is the name of the capital of Iceland? 2. What religion do 90 percent of Icelanders adhere to? 3. Some roads in Iceland have been rerouted to avoid disturbing areas where these mythical creatures are thought to live. What are these creatures? 4. Iceland is often referred to as the land of the midnight sun. How much daylight does Iceland get in the summer? 5. What percentage of Iceland is actually covered in ice? 6. What language is spoken in Iceland? 7. Iceland has the highest legal drinking age in Europe. How old do you need to be to have a drink legally in Iceland? 8. What popular Nick Jr. television show was created and is produced in Iceland? 9. In Iceland, what is the Althing? 10. What is Icelands main industry?

Answers on back page

Internet Tidbit
If you like to be on the cutting edge, check out the gadgets at Outgrow.me. Each is a crowdfunded projectthe funding for each comes from people around the world, who pool their money to support innovative designs and products. At Outgrow.me, youll find a marketplace for the best and most successful crowdfunded projects from websites like Kickstarter, Indiegogo, and other independent websites. Everything on the website is for sale, making one of the most unique marketplaces youll ever visit.

According to a study released by Federal Reserve Bank of Richmond not only is that assumption incorrect but there is evidence that young people are actually better at managing their credit than those of us in our 40s. The study found the following:
An individual between the ages of 40 and 44 is 12 percentage points more likely to go seriously delinquent than a 19 year old. Would the CARD

By The Numbers:
Hockey in the U.S.

Health & Wellness

Healthy Teeth as You Age

A new report by Oral Health America reveals that more senior Americans are seeing a decline in oral health. Over half of adults in the country get only fair or poor dental care access.
By Attila Thiry

Act have been more effective by making it illegal for credit card issuers to give a card to someone who is between 40 and 44 years old?

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Individuals who are under 21 years old are substantially less likely to go 90 days past due or worse AND young borrowers are among the least likely to default on a credit card. This is one of

the reasons credit card issuers had no problem giving credit cards to consumers who are under 21. First-in-wallet loyalty plus low risk equals a happy card issuer.

- There are just over 500,000 players registered with the USA Hockey governing organization, representing all youth players in the U.S. - The fastest speed ever clocked on a hockey puck was a world record 119 mph (192 km/h) by Bobby Hull. - There are 30 NHL hockey teams, drawing an average of 17,500 spectators to each game. - The average value of an NHL team is $282 million. - Even though ticket prices rose an average of 5 percent last season, the NHL still filled its arenas to 96 percent of capacity on average each game. Source: Plunkett Research, Ltd. and the National Hockey League

Individuals who enter the credit card market early are less likely to default than individuals who enter the credit card market later. Its too

bad the CARD Act is forcing many to enter the market later.
In summary, the study finds no compelling evidence that young borrowers are bad borrowers and the results caution against interpreting early entry into the credit card market as a suboptimal behavior.

Look, nobody wants young people to get into excessive credit card debt, just like we dont want any age group to get into excessive credit card debt. But to simply assume that one homogenous population (<21 yrs old) is riskier than another without evidence to support your theory is bad public policy. In fact, a lender making the same unsupported assumption and then acting upon it would be guilty of an ECOA violation.

This stems from a lack of dental insurance coverage, fewer dentists specializing in seniors dental care conditions, and a lack of prevention programs. Every day over 10,000 Americans retire. Only two percent do so with dental health coverage in place. Forty-two percent of states do not provide coverage or only offer emergency coverage through adult Medicaid dental benefits. Not having access to regular dental care can lead to a number of problems. For many older adults,

medications causing dry mouth can be a challenge. A dentist can help with strategies to reduce this problem and associated oral health complications. Gum disease leads to tooth loss, and seniors are especially susceptible to this. Many people do not know that gum disease also increases your chances of developing heart disease or stroke, as the bacteria from your mouth can cause blockages in coronary arteries. Diseases such as diabetes can aggravate gum disease. Gum disease can in turn make symptoms of diabetes worse. A dentist can help

with managing both of these conditions. There is also a benefit to regular dental exams, as your dentist will check for any signs of oral cancer, which if found early, can often be successfully treated. How can a senior find available and affordable oral health care? Visit the website toothwisdom.org. Here you will find articles about oral health, as well as resources such as local dentists, community health centers offering dental care, caregiving support, social services, and help with transportation.

Quotes to Live By:

- Life is a gift, and it offers us the privilege, opportunity, and responsibility to give something back by becoming more.

Quotes to Laugh By:

- Even if youre on the right track, youll get run over if you just sit there.

Anthony Robbins Elite Credit News

Will Rogers

2 December 2013 | EliteCredit News

| December 2013 3