A person's credit score now days determines what they can and can't own anymore, and the way it works is compltely backwards, a person that has hardly any debt at all will be pentalized verses a person that is in debt up to the neck, doesn't make since.. I sold a house once and decided to pay off three credit cards I had at the time, and some other bills, so I did and then went out to buy another House, well my credit score dropped like 200 points almost after selling my House and paying those bills off, so I had a hard time getting a Home Loan after that. I just don't think your life should be ran by a company that no one knows anything about (actually 3 companies) I just think it should be against the law for them to sell your credit history and make money on your behalf, and most of the time alot of there info is wrong and most people don't even know it.
2007-08-05
03:54:59
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14 answers
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asked by
Carol 4
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Business & Finance
➔ Credit
I posted this same question yesterday and was saying my credit score dropped, I also was told that my score will drop everytime someone looks it up, plus alot of you said I can acquire a fre credit report online, well I did that and discovered that you are intitled to one report a year free, and it's sent to you by mail, this should be free for our viewing only at anytime we request to see it, the online thing says it's free but it isn't, you have to pay a monthly fee to see your credit score, and yes I did dispute a couple things on there that was big mistakes and was from a long time ago, so that even makes this system that much more at fault for a method of determining the fate of someones life, the system SUCKS and needs to be gotten rid of all together. I'm writing my congressman and raising hell about this, and I would like to see everyone else pass this along to your friends and all and get rid of this failed system
2007-08-06
02:44:08 ·
update #1
Yes to all you said, it's not fair on those who try to have good credit. And also unfair to those who were minors whose parents screwed with their credit. Such never had a chance once they became adults.... But all things can be overcome eventually, with work, and NO fraud or "debt removal."
2007-08-05 03:58:07
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answer #1
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answered by all_stardusty 4
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I completely agree with you. I never had bad credit, just as they like to call it "not established"....meaning I did not have 54 credit cards, 23 car loans, etc etc etc. I have had to have a co signer the last two times I ourchased a vehicle. I went throgh the same financing company the second time as I did the first time! I was making way more money the second time, and if anything I had more established credit. Nope, did not matter had to have my dady co sign for a car. I also owned a house by the time my second time came around. Oh, and lets not even talk about the house loan. The first time I signed with my fiancee, and we could only get a two year fixed loan. So we had to refinance in two years. It took over 3 months and daily fights and conversations to close on this loan! I was going through the same loan company, had not missed a payment (just liuke on my vehicle loan) and had started making more money, etc. They gave me such a hard time! All because my credit report was not "established" enough! I cant take it! One thing I did do recently was go to annualcreditreport.com. You can go there and look at each of your credit reports for free once a year. Of course they make you pay if you want to see your score though....surprise surprise! But if you see anything on your report that is wrong you can dispute it right there on line-I found a couple thing that were wrong and disputed them and theyt were gone the next day!
2007-08-05 04:08:25
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answer #2
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answered by Anonymous
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I 100% agree. This has especially been the standard in the mortgage industry over the course of the last few years and since "man does not live on credit score alone" now look where were at, the highest foreclosure ratios ever!
The credit score system was designed for a useful tool for lenders, not an end all, and not to be sold to the highest bidder. Below is a website designed for the consumers who do not want to be included in those massive, score driven, offers.
As far as the credit score dropping 200 points, this is a certain "flaw" in the system. When you pay off and close an account, especially revolving, your score drops as opposed to paying off and leaving open with a -0- balance. This is because part of the "score calculation" includes a "high credit limit to balance" ratio of which closed accounts are not included, there dropping the credit score as available credit limits are reduced.
Hope this helps!
2007-08-05 04:59:47
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answer #3
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answered by Etta P 4
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I can see that people get upset when credit score determines what kind of loan they're going to get. However, if you're a business owner or a corporation that loans billion and billion of dollars to the public, if no one paid them on time, what will happen ?
Anyone of us here can be a shareholder of any one of the companies that loan the money. I don't think I would be happy to invest in the company that's doing poorly because the debtors don't pay their bills. I would lose money myself.
Certain situation happened out of our control. The only thing we can control is not buying things that we can't afford to pay back in a month or two. Job is unstable. Accident can happen anytime. No one knows what will happen in the future.
I don't know why your credit score went down. I was married once before. When we got a divorce, we sold our house, paid off credit cards (which wasn't a lot) and we both bought our own home. I got a 5% fixed for 20 years pre-approved with no problem. Maybe you want to check your credit report to see anything else is out there that you're not aware of.
2007-08-05 04:15:27
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answer #4
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answered by Prenn 3
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I personally agree with you. Credit is BS. I feel that its a scam because the worse credit you have, the more money lenders and banks make off you in interest. They for the most part will still lend to poor credit, just at a super high rate with a ridiculous down payment. They love bad credit, even if they don't admit it. That's why they make it so easy to destroy,but nearly impossible to fix. You miss a few payments when your a dumb college kid, after they basically shove a card down your throat, and its on there for 7 years. So stupid. Seven years is so long, I really feel this country needs to amend how they score and view credit. You can be making 6 figures a year, with no debt, but because you were dumb in your early 20's you cant get a home. Does the government really think this makes sense. Write your congressman.
2007-08-05 05:16:43
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answer #5
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answered by frankie b 5
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Well, you may not know about the companies, but a lot of people do and you don't seem to know that you can go to www.freecreditreports.com and get a free copy of each of the three reports for free and that you have the right to challenge any wrong facts in the report and add an explaination to anything that appears which is misleading.
When I was growing up, local credit bureaus handled everything and there was no access. The only way you found out anything was if you were friendly with a merchant who would get it for you.
2007-08-05 04:00:27
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answer #6
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answered by Mike1942f 7
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I totally agree! My husband and I were in a terrible accident long ago before we had my son and we both needed surgery and neither one of us had insurance at the time and we didnt have much money because we were just starting out. Thousands and thousands went on our credit from the hospital, we paid what we could but it was impossible to pay it all. A few years later we got wonderful jobs and insurance and we are good hard working people, but we couldnt buy a house or get a car or anything because of our credit past. Finally after 7 yrs it has been wiped clean and we got a fresh start and bought our first home! It was definatly hard though in the past.
2007-08-05 04:00:16
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answer #7
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answered by sweetgirl 4
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The FICO score is a I Love Debt score. You have to be in debt to be rated well...Minimum of 1 real estate account(open) and 2 major credit cards. all current of course and charged about 1/2. it's better to just save the money, pay cash, act you wage and be weired doing it. you will get jokes from otheres because they dont understand that you don't want to be a slave to you creditors...Don't keep up with the Jones's. They are up to their eyeballs in debt. Ony buy what you can affort. Pay cash and don't overspend on things you will sell on you yard sale a year later because you only used it 2 times. I am now on Dave Ramseys website following his plan. I dropped $26000 in debt sine 01/2007. The house will be paid of in 11 years not 27, and i will have plenty to retire on... and all without the FICO score... it CAN be done!!!!
2007-08-05 04:27:18
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answer #8
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answered by LadySwift 2
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You're right. The rules are not intuitive but you need to know them.
It is important to keep track of your credit score and who is requesting that information. You can subscribe to one of the 3 credit bureaus or you can check your credit on freecreditreport.com for free. If anything is wrong, it's important to fix it.
People are viewed by their past behavior. There's little else to base future behavior as annoying as that is.
2007-08-05 04:02:57
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answer #9
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answered by binarywoman 2
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You should really get a copy of your credit report and look into why your score dropped because it should really have gone up if you paid off your previous loan AND your credit cards.
2007-08-05 04:13:27
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answer #10
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answered by Anonymous
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