FICO , a concept which helped banks to remove the human element out of credit decisioning process, thus making lives simpler. One metric could encapsulate a whole lot of information relating to the payment history , outstanding balance, length of credit, depth of credit and recency of credit. Improvement of FICO score was always considered a healthy option for a person as it would give way to a lot of incentives like low buy down points, lower mortgage interest rates,etc. I was always of the opinion that FICO was a great win-win for everybody. Banks get to appraise credit worthiness of an individual and disciplined individuals get better rates..

However there is one set of individuals who get affected when people have good FICO scores!!!. - Car dealers..Typically if a person has a good FICO score, the bank never cares to know the type of car, the various aspects of car..However if the FICO score is low, the bank wants to know the nature of car , etc..and here is a chance for the dealer to sell extra accessories in the name of safety…So, car dealers all over US love customers with low FICO score as it allows them to sell more accessories.

Somehow, I had never thought from this perspective until today when I came across a grumbling car dealer.