Posted on Oct 26, 2017
Do you think the current credit score system is fair/unfair? Do you think it needs updated?
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Do you think the current credit score system is fair or unfair? Do you think the system of reporting or calculating credit needs updated? What can we do or should we do to make it more accurate or fair?
Credit Manager
Personal Finance
Fairness
Finance
Posted >1 y ago
Responses: 6
Suspended Profile
Fair-Isaac guards the exact function for calculating credit score -
Can't be certain which bureaus accurately know it or could manipulate it. The legislation (not to mention developing new system altogethrr) would take years to work through Congress....and then the federal government will wanna take charge permanently. We are probably due for another revolution of sorts - folks need to rise up, write their congressman and lobby like hell to rearrange the credit bureaus. The govt should sue the shit out of the executives that cashed in millions worth of stock around the equifax breach and INCARCERATE THEIR SHADY ASSES. Lastly, we are all gping to need to find a new alternative to SS #s, and have the IT personnel and procedures audited thoroughly to determine better OPSEC safeguards and procedural concerns. Personally, I am worried about future quality of life since personal info continues to get stolen by major agencies that are supposed to be staffed with significantly more competent people than then has appeared to be the case within recent years.
Can't be certain which bureaus accurately know it or could manipulate it. The legislation (not to mention developing new system altogethrr) would take years to work through Congress....and then the federal government will wanna take charge permanently. We are probably due for another revolution of sorts - folks need to rise up, write their congressman and lobby like hell to rearrange the credit bureaus. The govt should sue the shit out of the executives that cashed in millions worth of stock around the equifax breach and INCARCERATE THEIR SHADY ASSES. Lastly, we are all gping to need to find a new alternative to SS #s, and have the IT personnel and procedures audited thoroughly to determine better OPSEC safeguards and procedural concerns. Personally, I am worried about future quality of life since personal info continues to get stolen by major agencies that are supposed to be staffed with significantly more competent people than then has appeared to be the case within recent years.
MSG (Join to see)
Amen
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Rigged... what if you have no loans or credit cards but have a 6 figure income? Bad credit rating.
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I think the whole concept is screwed up. The more times I borrow money and the more money I borrow ends up giving me a better credit score. By having a better credit score I can borrow more money. Our whole society has fallen for this scam. You have to borrow money so you can get a credit score. If you have a good credit score you can qualify to borrow even more money. I have a CRAZY idea! How about if we simply buy what we can actually afford with cash, and if you want something a little better, save up for it, sell what you already have, add it to what you saved and go buy that something better. I get how this is probably not possible for a mortgage, but with everything else it works. It's amazing how much money you have at the end of the month when you get to keep it instead of having to pay it to the bank, credit card company, car dealer, etc.
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CSM Eric Biggs
I agree completely on the house. I also agree that if your not lending me money you should not have the ability to check my credit. Also hate that if to many people check your credit it can hurt your credit.
My advice; get a mortgage, freeze your credit, pay all your other debt off and don't ever barrow money again. That way you won't have to worry about your credit score.
My advice; get a mortgage, freeze your credit, pay all your other debt off and don't ever barrow money again. That way you won't have to worry about your credit score.
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SSG (Join to see)
CSM Eric Biggs - the problem is that for many that can take a life time but very solid advice to all.
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Suspended Profile
Still gonna need a decent credit history if you want to be allowed to rent a decent apt......acquire money to start a business....... adopt a child.......become federally employed (btw, they dont so much care about the score; it is about how much federal debt you have, have you made mutually agreed upon plans of repayment, will this job enable you to support yourself and the debts, are you a legal or confidentiality risk) .....
Your credit score is tied into not only debt levels, but to other data, like a feedback loop. If you actively avoid participation, you will decrease one headache for others. The idea being that resources are distributed where needed equally.
The credit and banking system is necessary for the average person to acquire vital cash in a reasonable timeframe to mitigate losses or improve their lives, while negotiating everyday cost-of-living expenses. Ergo, they have to participate if they want to take advantage of contemporary life benefits and experiences for themselves, their families, etc. If one happens to be liquid enough to buy everything one needs - as well as wants - on a cash basis, that's great. The problem is most people are nowhere near financially liquid enough to simply save a few weeks/months salary; some may never be. Yes, save and start saving young, but life ain't fair - you may have major setbacks, maybe you just can't seem to make enough money for day-to-day.
One can't reliably escape debt in a civilized society (unless you happen to be a trustfund baby or someone who goes off the grid). You should keep debt levels low or reasonable, sure, depending on personal circumstances. And I empathize with anyone that has been significantly impacted by the equifax breach. I straight-up love getting calls for 'suspicious activity' on one of my accounts or being notified that OPM/equifax/(insert agency that "takes your privacy and security of personal data seriously") has been compromised and my personal information was likely stolen. It is a hard pill to swallow and the costs of surviving the fallout from ID theft are not that obtainable ....unless you have plenty of stowed cash.
There are abuses, incompetencies, inequalities and greed, absolutely....but in ethical, empathetic and competent hands; a credit system can improve lives. The metrics used may require tweaking and more responsible interpreters, but part of the negative experiences with credit come from poor consumer decisions. It is disparate education, criminal or negligent activities, skewed perceptions on personal financial situations, and the overall net effect of bad decisions that counteract efficient delivery of credit resources, and reasonable or efficient regulation & governance.
Your credit score is tied into not only debt levels, but to other data, like a feedback loop. If you actively avoid participation, you will decrease one headache for others. The idea being that resources are distributed where needed equally.
The credit and banking system is necessary for the average person to acquire vital cash in a reasonable timeframe to mitigate losses or improve their lives, while negotiating everyday cost-of-living expenses. Ergo, they have to participate if they want to take advantage of contemporary life benefits and experiences for themselves, their families, etc. If one happens to be liquid enough to buy everything one needs - as well as wants - on a cash basis, that's great. The problem is most people are nowhere near financially liquid enough to simply save a few weeks/months salary; some may never be. Yes, save and start saving young, but life ain't fair - you may have major setbacks, maybe you just can't seem to make enough money for day-to-day.
One can't reliably escape debt in a civilized society (unless you happen to be a trustfund baby or someone who goes off the grid). You should keep debt levels low or reasonable, sure, depending on personal circumstances. And I empathize with anyone that has been significantly impacted by the equifax breach. I straight-up love getting calls for 'suspicious activity' on one of my accounts or being notified that OPM/equifax/(insert agency that "takes your privacy and security of personal data seriously") has been compromised and my personal information was likely stolen. It is a hard pill to swallow and the costs of surviving the fallout from ID theft are not that obtainable ....unless you have plenty of stowed cash.
There are abuses, incompetencies, inequalities and greed, absolutely....but in ethical, empathetic and competent hands; a credit system can improve lives. The metrics used may require tweaking and more responsible interpreters, but part of the negative experiences with credit come from poor consumer decisions. It is disparate education, criminal or negligent activities, skewed perceptions on personal financial situations, and the overall net effect of bad decisions that counteract efficient delivery of credit resources, and reasonable or efficient regulation & governance.
CSM Eric Biggs
I disagree with most of your argument. If people simply lived on less than they make, and knew the difference between a want, a need and an emergency, they would be able to systematically work their way out of debt. Also if someone is debt free I can guarantee they are less of a legal or confidentiality risk than even someone who is only $1,000 in debt. I do agree most places require credit to rent apartments or get a mortgage, but there are still individuals and businesses who know how to manually underwrite a mortgage and realize if you have enough cash for first/last months rent and a security deposit and have no debt; you are more likely to pay your rent than someone else. Most people will take out a loan to start a business this is true, but if you can do it without taking out a loan, don't you agree you would be better off financially starting day one?
I refuse to listen to the excuses and the it can't be done's when it comes to getting out of debt and staying out of debt. I agree it can be hard, and may take longer for some than others. However I am proof it can be done.
$80,000 in debt payed off systematically in 4 years on a Police officer's salary, by getting on a budget and following the below steps. All it takes is the desire to change.
https://www.daveramsey.com/baby-steps/?snid=start.steps
I refuse to listen to the excuses and the it can't be done's when it comes to getting out of debt and staying out of debt. I agree it can be hard, and may take longer for some than others. However I am proof it can be done.
$80,000 in debt payed off systematically in 4 years on a Police officer's salary, by getting on a budget and following the below steps. All it takes is the desire to change.
https://www.daveramsey.com/baby-steps/?snid=start.steps
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