Credit scoring works?? i.e, when you apply for a loan and you don't get declined you try another company, so the next one declines you again so you try another.... And all that you have applied for effects your credit rating and show's up on your credit report! Do you think this is unfair and it is making things more and more difficult for us people.
2007-06-21 21:29:56 · 7 answers · asked by me_me 1 in Business & Finance ➔ Credit
The idea behind this is to try and stop people borrowing more money than they can afford.
Although a search is shown on your credit file when you apply for a loan, whether you got the loan or not is not recorded.
So, to lenders you could have taken out 5 loans say, so it would be a risk to them lending you more money, as you probably couldn't pay it back.
Its really not worth trying for a loan from a number of lenders though, they all use similar parameters, so if one declines you and then someone else does to, you might as well stop then as its going to be very difficult to get a loan anywhere.
2007-06-22 00:44:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is quite fair. Simply because being denied for a loan is part of your credit history. Each time you apply for a loan and are denied, there is evidence that someone found you not credit worthy. Do remember that lenders don't go by credit score ALONE. They do look at what is in your credit file to determine how your score got where it is.
2007-06-22 07:47:34 · answer #2 · answered by acermill 7 · 2⤊ 0⤋
Sorry but I don't think that it is unfair. Coz if you don't pay and you continue to borrow money the problems just gets bigger and bigger. While if you are a good client to the bank you get more credit and less interest.
2007-06-22 04:38:43 · answer #3 · answered by alx 2 · 2⤊ 0⤋
Try saving up for things instead of using credit
2007-06-22 04:39:14 · answer #4 · answered by misbehave4me 4 · 2⤊ 0⤋
i agree......... they also take your age into consideration....... if you are 18 for instance and u apply for a loan and u have no credit score they count that as bad too.......... but how are u supposed to get a credit score if no-one will give u a chance..........xxx
2007-06-22 04:33:21 · answer #5 · answered by it's me!! 4 · 0⤊ 0⤋
I feel it is an unfair thing. Everyone needs to start some where.
2007-06-22 07:56:21 · answer #6 · answered by M L 2 · 1⤊ 1⤋
One of the cruel facts of life is that banks won't lend you money unless you can prove you don't need it.
2007-06-22 04:35:36 · answer #7 · answered by Anonymous · 1⤊ 0⤋