Monday, October 22, 2012

The Credit Score Scam

   Credit cards and the companies behind them have hoodwinked the public into believing they are more important than they really are....and doing so at unbelievable profits. It’s gotten to the point that everything is hooked into your credit score. Soon, buying the simplicities of food and clothing will depend on your credit score. I’m exaggerating, but I really won’t be surprised if this becomes true soon.

   A credit score is a snapshot of the risk you pose to a lender should they decide to lend to you. Now, the very fact that if you live without having to borrow from anyone and pay all your bills on time gives you a zero rating should show how flawed the system is. Further proof is reflected in your score from the three credit reporting bureaus, Equifax, Experian, and’s never the same. Heck, they don’t even have the same information most of the time...and much of the information they do have is often wrong.

   I really shouldn’t have to say this but...these companies are NOT on your side. I mean. Let’s be real, when has the big company or corporation ever been on the side of the little guy?

Despite what most people think, the credit bureaus don't work for consumers, they work for creditors. They will not accept any information from a consumer without indisputable proof, while the creditor just simply needs to make a claim and it is slapped onto your report unverified.”   
                                                   - The Real Truth About Finance

   So wait, they can say anything, possibly causing a negative effect on your score, which in turn causes lenders to raise the interest rate on you? Uh...yeah, a higher rate means the company gets more money...and it’s all about the corporate profits (duh). It’s getting ridiculous now. There are rates being levied as high as 79.9%. Granted, for a rate that high they are considering you an extremely high risk investment, but really, this is just legal loansharking. The system is bad, but what’s got me really concerned is the application of that system.

   Every time you seek to borrow money, your credit score is going to come into play. Ok...fair enough, but now your credit score is becoming the standard for everything, and it shouldn’t. This system should not be further validated by becoming the guide for other situations. Landlord’s use it to determine if you’re a good candidate for rental. Sounds like a great idea on the surface, but what about that person turned down because of a score on the lower end, that absolutely ranks putting a roof over the heads of them and their children above all else? They may have been late on that credit payment because they paid the rent. I know the mortgage is the most important bill I have because all those other bills don’t matter if I’m homeless.

   How about your credit score being a determining factor in whether you get a job? Essentially, the credit industry has the determining power (with some help from you) over you regarding employment. I think that’s absolutely ridiculous. You pay your cards off, don’t use them for a a consequence, your credit score goes down, and some nitwit looks at this score and decides you’re not going to be able to earn a living? Huh...? Let me be clear, a private company can do as they please, but it’s a reflection on how far gone society is when it has come to this point.

   Just follow the money. It’s all about the money. The Credit Card Act of 2009 was supposed to help the consumer from unfair and predatory practices by the lenders. Somebody should have told lawmakers that the industry would find a way around this...but I suppose it got lost in the sauce as they added an amendment to guns in national parks to the act. The only correlation I can make to guns and credit cards is who you might want to shoot when you get your bill.


  1. Now I understand what a credit score meant and it becomes a standard of everything which shouldn't be in the first place. I learned a lot. Thanks for sharing.

    1. Glad I could be a useful source of information Carl...:-)

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