http://www.creditinfocenter.com/wordpress/2009/10/27/is-the-credit-scoring-system-fair-a-viewpoint-which-agrees/ For the Up To Date News Tue, 07 Feb 2012 22:26:40 +0000 hourly 1 http://wordpress.org/?v= http://www.creditinfocenter.com/wordpress/2009/10/27/is-the-credit-scoring-system-fair-a-viewpoint-which-agrees/comment-page-1/#comment-4171 Tiffany Kent Mon, 08 Mar 2010 09:11:53 +0000 http://www.creditinfocenter.com/wordpress/?p=4870#comment-4171 Is the credit scoring system fair? Only if every American has identical circumstances and equal access to money! One person could be blessed with a decent salary, no health problems, and an opportunity to pay all bills on time without difficulty for an entire lifetime. They are rewarded with a great FICO score and all the financial blessings that go with it. Another person could have a good payment history, then suddenly get laid off from work through no fault of their own, forcing them to choose between paying on a credit card or going without food. Yet another person could have a child diagnosed with a major illness. If that person's employer does not provide access to affordable health insurance, this person may face insurmountable medical bills that one day will end up as collections on their credit report. Yes there are people who have the means to pay their bills and willingly choose not to. But just because someone has late payments or some collections on his or her credit report does not mean that he or she is going to willingly not pay for their house or car, or even their credit cards! I gave three examples of people who want to pay bills. Only in example one is the person rewarded for their honesty. Situation two lost a job and then suffered years of financial ruin through no fault of their own. Situation three lacked the funds to pay for medical issues, again through no fault of their own. Yet situation three cannot obtain financing for a house or a new car because the medical bills have pulled their FICO score down to a low level. Just because they have a lower income or no medical insurance does not mean they are not likely to pay a mortgage or car payment! All we look at is a number and then make life-altering decisions about a person's willingness to pay bills. We do not even consider any other circumstances, or look at the big picture long enough to realize that just about everyone will face a hardship at some point in his or her life. So should we continue to punish them for up to seven years because they lost a job or have an ill child? Come on! This is not a definition of fairness. But it is a way for lenders to "justify" their bigger finance fees, or to make an excuse to quickly glance over an application for credit without asking deeper questions about the applicant's honesty or intent or what situations he or she may have faced in the past. No. Credit scores are in no way fair. The ONLY way they could be fair is if the only people being penalized were those who deliberately refused to pay their bills or who never faced a hardship. Is the credit scoring system fair? Only if every American has identical circumstances and equal access to money! One person could be blessed with a decent salary, no health problems, and an opportunity to pay all bills on time without difficulty for an entire lifetime. They are rewarded with a great FICO score and all the financial blessings that go with it. Another person could have a good payment history, then suddenly get laid off from work through no fault of their own, forcing them to choose between paying on a credit card or going without food. Yet another person could have a child diagnosed with a major illness. If that person’s employer does not provide access to affordable health insurance, this person may face insurmountable medical bills that one day will end up as collections on their credit report. Yes there are people who have the means to pay their bills and willingly choose not to. But just because someone has late payments or some collections on his or her credit report does not mean that he or she is going to willingly not pay for their house or car, or even their credit cards! I gave three examples of people who want to pay bills. Only in example one is the person rewarded for their honesty. Situation two lost a job and then suffered years of financial ruin through no fault of their own. Situation three lacked the funds to pay for medical issues, again through no fault of their own. Yet situation three cannot obtain financing for a house or a new car because the medical bills have pulled their FICO score down to a low level. Just because they have a lower income or no medical insurance does not mean they are not likely to pay a mortgage or car payment! All we look at is a number and then make life-altering decisions about a person’s willingness to pay bills. We do not even consider any other circumstances, or look at the big picture long enough to realize that just about everyone will face a hardship at some point in his or her life. So should we continue to punish them for up to seven years because they lost a job or have an ill child? Come on! This is not a definition of fairness. But it is a way for lenders to “justify” their bigger finance fees, or to make an excuse to quickly glance over an application for credit without asking deeper questions about the applicant’s honesty or intent or what situations he or she may have faced in the past. No. Credit scores are in no way fair. The ONLY way they could be fair is if the only people being penalized were those who deliberately refused to pay their bills or who never faced a hardship.

]]> http://www.creditinfocenter.com/wordpress/2009/10/27/is-the-credit-scoring-system-fair-a-viewpoint-which-agrees/comment-page-1/#comment-3419 forex robot Thu, 03 Dec 2009 07:14:46 +0000 http://www.creditinfocenter.com/wordpress/?p=4870#comment-3419 nice post. thanks. nice post. thanks.

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