Some folks can't get credit; some can't get jobs because of this system. If it was fair maybe the playing field between the haves and the have not’s would be more level. What do you think ? Do we have to have this system in place as it is or should it be tweaked to make up for the computer and paper mistakes, Stolen identities and the other big problems effecting the peoples right to get a loan? People don't have AAA credit anymore, not the low income ones; they may have 600 points tops if they've never been divorced or truly sick.
2007-01-20 05:27:25 · 4 answers · asked by slipperysson5 1 in Business & Finance ➔ Credit
I don't think the current credit score system is fair. They are just numbers. Experian, Equifax and Transunion are just companies that take your financial situation and put a number on it.
You're right, mistakes, stolen identities, and other factors can ruin your credit score and it can make your life miserable. Just because a person is a 620 and not a 750 does not make that person any less worthy.
However, it's the only system we have in terms of judging whether or not you can get a personal loan, a mortgage, a credit card among many other things. I'm certainly not saying it is fair by any means.
Those companies are harsh, they judge people based on whether or not they made their payment on the 1st of the month or the 18th of the month. They don't take into consideration that people have issues in their lives.
2007-01-20 05:39:44 · answer #1 · answered by porselin 2 · 0⤊ 2⤋
Sorry but you are confused. The credit score system is not a "federal" system. There are a number of players involved, but not really a government agency. The players are regulated by govt agencies, just like a grocery store, dental office, or any other business.
As far as tweeking the system, who would administer that process? The current system is simply a fact based record of a person's use of credit. No more, no less. From there decisions are made in regard to future lending.
When you say level the paying field, again who would administer this leveling? And are you saying that the have nots would be better off with more debt? I know this may be a shock to you, but a lot of your have nots have good credit and manage thier finances and I have seen a lot of "haves" with bad credit.
Also you can get divorced and keep good credit. The key is simple, when married do not cosign for any account you can not pay for yourself. Easier said than done, but many, many people get divorced and mange to keep thier credit OK.
As far as ID theft, there is no doubt the lending industry, regulators, and legal system failed in the biggest way to address ID theft and consumers were damaged. Hopefully that situation has improved, but I don't know.
As for errors, those can usually be corrected by going through a series of steps, but again for some people I am sure the process does not work.
2007-01-20 06:15:26 · answer #2 · answered by Gatsby216 7 · 1⤊ 0⤋
Income has nothing to do with credit. Its all based on how you pay your bills.
Credit scores are numerical indexes based on an algorithm developed by Fair Isaac Company, called a FICO score. Scores are negatively impacted by events such as late payment, incomplete or partial payments, defaults, and judgements or liens, and range from 300 to 850. The actual algorithm is a trade secret of Fair Isaac, but the following breakdown approximates the weighted values that compose your score.
35% Payment history
30% Outstanding debt
15% Length of your credit history
10% Recent inquiries on your credit report
10% Types of credit in use
BTW there is nothing federal about credit scores. Credit scores where invented by the credit bureaus not the government.
2007-01-20 05:30:57 · answer #3 · answered by Anonymous · 2⤊ 1⤋
Your understanding of how to build your credit is why you are finding the way forward hard to accomplish.
Most people believe that if they have a job, pay all of their bills, save money constantly that their credit score should go up. This is not correct: Your credit score goes up when you don't need credit.
On two occasions I bought houses for about $1,000 and sold these run down scum bag properties for about $3,500. Since I saved the money I used to buy the property and paid taxes on the profit, my credit shot up.
A persons credit worth is dependent on how much that person have to loose. A owner of a $100,000 property with a $80,000 mortgage have less to loose than a owner of a $50,000 property with a $20,000 mortgage. You need to think from the point of view of lenders.
Become one, and you will learn that most time people lie.
2007-01-20 05:48:10 · answer #4 · answered by whatevit 5 · 0⤊ 1⤋