Credit Reporting is the most unfair system in existence and here are the reasons:
It is a stereotyping system which denies a person any reason for going through a hard time such as catastrophic illness or times like the present when there are job losses.
Negative reports stay on the report far too long regardless if the person has made a turn-a-round in their situation.
If errors in reporting are made, it is the customer who must correct the report or carry the burden of proof for the report being wrong. An agency can report an unpaid bill even if one has paid it and hopefully, the receipts have been kept or you are just stuck.
Credit card companies are the worst offender as they allow customers to go over their limits and add penalties and also they switch the payment due date and then slap on late charges. They are quick to report negative information and it takes a long time to override this information.
A person’s ability to buy a home is highly jeopardized by this credit score and should not be as people need a place to live and will pay a mortgage or rent even if other debts fall apart.
In the recent economy where so many people have lost their jobs, it is unbearable to think that credit scores are used by banks, particularly because they have been propped-up by the tax payer s and are not held to the same standard for their negative behavior.
Human ingenuity far surpasses a credit score and trust in the consumer is just as important as trust in our banking system which in fact makes money off of our negative behavior. $35 for a $10.00 check they pay when a customer has been a long-time customer or has other money in the bank is a total rip-off.
If the credit score becomes the mode of judging human behavior, I don’t see how the customer base that we depend upon will ever recover.
It is the same method used to test children and use test scores to abolish money to schools are fail a child who has talents beyond a test score.
It is a depressing system which holds many people in bondage. To narrow a person’s ability to survive or to move forward due to a credit score is a form of dictatorship.I think we need to abolish the system and allow people to have a broader view of their ability to do business. It obviously has not worked in our system as it was used to determine buyer ability to pay and we now have an avalanche of foreclosures.
I feel we need to abolish the system and allow a broader view of human abilities. Abilities such as overcoming obstacles in the past, newly developed skills, a new and better job, making payments even if they are late and never forfeiting on a loan. These are good values and rewards for continued progress should be in place. If we can forgive ball players and politicians for their transgressions, maybe we need to be ready to assist those who are hard working but have experienced some bad luck.