Michael Jackson’s credit score: 564
Posted
Aug 31 2009, 01:22 PM
by
Karen Datko
Rating:
TMZ, the news source for all things Michael Jackson, expressed amazement that MJ had terrible FICO scores.
"Here's a shocker -- Michael Jackson had an abysmally low credit score," said a story at the Web site. In 2007, TMZ says it has learned, Jackson's scores from the three major credit bureaus were 592, 524 and 575, averaging out to just under 564.
It's really no surprise, considering his well-documented ultra-extravagant spending and financial woes, including the fact that Neverland Ranch nearly slid into foreclosure. But there's a lesson for everyday people in the specifics that caused the King of Pop to have poor scores.
Here are the reasons given in the TMZ report:
- A derogatory public record or collection filed.
- The amount owed on delinquent accounts.
- Number of accounts with delinquency.
- Too many inquiries in the last 12 months.
To put this in perspective, FICO scores have a range of 300 to 850. A score under 620 puts you in the subprime market. (Experian offers a state-by-state look at average scores and debt.)
Michael Jackson may have made a mess of his finances, but he did prepare a solid estate plan, including a will, a living trust, and trustees and executors who are experienced and knowledgeable.
All told, Jackson's estate is worth hundreds of millions -- a number that's still being figured out. The total is expected to be considerably larger than his estimated $435 million of debt. Plus, the size of the estate has grown by $100 million since he died on June 25, and is expected to make $50 million to $100 million a year, The New York Times says. Compare that with the $55 million Elvis Presley's estate earned last year. The NYT also said:
In life, Mr. Jackson faced a precarious financial future, as he piled on debts to finance his tastes in art, to travel on private jets and to keep up Neverland. In death, his estate may enjoy the financial security he never had.
Jackson will be buried on Sept. 3, according to the Glendale News Press.
Related reading:
Who will profit from Michael Jackson's death?
King of Pop's estate-planning guide
Mistakes that disinherit heirs
What bad credit really costs you
