Is the credit scoring system and laws flawed?
You are entitled to your credit reports once a year. You must purchase your credit score at a premium (~$15/ score, per bureau). Creditors most often use a score to determine what "tier" and interest rate you qualify for. Your score is based on information the bureaus collect you YOU. It is your personal information, and they make a profit from this information when a company runs a credit check. They also sell you your own personal information, as I said. This information can greatly hinder a persons quality of life. Do you think this information should be free before you apply for credit? Also, do you think that receiving a free credit report once per year is enough considering how often your report changes? You are entitled when you are declined credit. I do not believe the FCRA does enough to protect consumers. I believe there should be more done to keep the consumer informed as to what is on their credit file, including the score. This will allow people to establish better credit, which would be good for banks and consumers. What would you like to see done?
I understand the difference in FICO & FAKO scores, and that mortgage lenders look at DTIR. I'm refering to credit cards, installment loans.
Spiffman, That is the problem I am talking about. The credit bureaus do publish personal info. This publication could be considered slanderous, they are making public info that is NOT confirmed. Why should I pay to ensure someone is publishing accurate information on me, when this information could possibly be false and prevent me from obtaining a job or credit? The Fair Issiac company calculates a numerical value based on my information which may be false and prevent me from obtaining credit, another life hindering scenario.
Judy, I have a mortgage, and great credit. I found an error on my report. It sat there for 8 months until I pulled my yearly reports. Why should an error be allowed to stay there so long without my knowledge? It was removed, but it should not have been there in the first place and it should not have been there for 8 months. It is slander. If I published false information about you, and you were financially hurt by it would you seek compensation?
A person will go crazy if they continually check their report or rating because even in the same day the information can change and sometimes for an unknown reason. Then you start trying to figure out why a 50 point drop and it is just because you charged on a couple of cards and ran them over 30% of your limit.
It would be a pain in the hinny if people requested their report daily because it was "FREE".
The system is clogged up so badly with people who do blanket "this is not mines" that the system IS ineffective indeed.
ADDED again SOMEONE is talking out her ears. TRY GETTING A MOrTGAGE WITHOUT YOUR SCORE BEING A FACTOR. Where do you come up with this crap Judy?
A person will go crazy if they continually check their report or rating because even in the same day the information can change and sometimes for an unknown reason. Then you start trying to figure out why a 50 point drop and it is just because you charged on a couple of cards and ran them over 30% of your limit.
It would be a pain in the hinny if people requested their report daily because it was "FREE".
The system is clogged up so badly with people who do blanket "this is not mines" that the system IS ineffective indeed.
ADDED again SOMEONE is talking out her ears. TRY GETTING A MOrTGAGE WITHOUT YOUR SCORE BEING A FACTOR. Where do you come up with this crap Judy?
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The FCRA does indeed need to be strengthened. However, in Washington money talks, and the banks and other financial industries lobby hard to prevent stronger consumer rights.
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I disagree, the credit bureaus are in business to make money just like any other business and they do not collect information about people they simply publish the information that is submitted to them by peoples creditors weather it's correct or not.
As far as it being free, why should it be? It cost money for creditors to submit this information and it cost money for the bureaus to publish it and it also cost money for lenders to request a persons report. All of this has to be paid by someone.
I believe it's the persons responsibility to make sure the information on their credit reports are true and correct not the credit bureaus.
And anyone that believes that scores don't make a difference when people apply for loans especially mortgages simply doe's not know what they are talking about.
Additional information.
I fully understand what your saying but again this is not the legal responsibility of the credit bureaus, they simply report the information that is reported to them. This is why I believe like I said that it's the individuals responsibility to make sure this information is correct not the bureaus.
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Finance Manager for over 9-years / 2008 edition Consumer Action Handbook / Friend works for Transunion.