The plain truth is this: the credit-reporting system was established to help businesses, not consumers. In fact, the system works against the average American.
Here is how the system should work:Â
- If you pay your bills on time, you should have a high credit score.
- If you have no late payments on your credit card, you should have a high credit score.
- If you pay a collection account, your credit score should increase.
- Credit card companies should be required to report positive information to the credit bureaus.
Guess what? The credit-scoring system does not work this way.
I have worked in credit-related industries for over 10 years and have seen firsthand how unfair, unjust, and downright criminal this system truly is. In fact, until recently, credit-grading organizations would not even tell consumers how they were graded. Imagine that—you receive a grade that plays a critical role in your ability to secure loans, but you don’t know the criteria by which you are being graded!
And even now, the credit-scoring system is confusing and shrouded in mystery. And unfortunately, the system has always acted against the average hard-working American. Pay your bills on time and in full? It’s not enough. Think you are behaving responsibly by paying a collection account? Your score will drop. Use a small percentage of your limit? The credit card company is not required to report this information.
As a result, credit card companies and the banks that give out home loans are freely and easily able to take advantage of the very people they are supposed to be helping. Because of the twisted, nonsensical, unethical system operating today, many of us—most of us!—are overpaying on our credit obligations without even realizing it.
Earlier this year, I went to Washington, D.C., to lobby our politicians to change the credit laws. I went to a financial literacy summit to discuss the problems with the credit laws. I wanted to talk about the average Americans who were taken advantage of. I went to Washington without any tangible backing, without even a single signature showing that my voice was not alone. Not surprisingly, I didn’t get a single response.
I’ve written my senators and congressmen. In return, I have received form letters thanking me for my time and assuring me my concerns would be taken under advisement. If I showed that my voice was just one of millions, I would get more than a pathetic rubber-stamped letter. I would get results.
That is why am creating a petition and by the time I return to Washington D.C. in March of 2010, I will return with a million signatures, a million voices—if not more. Behind each voice is a story that illustrates just how wrong the current system is.
I want to hear your story, and I want Congress to hear your story. I want to change the ending of your story. So please, share your story by leaving a comment below with:
- Why you think the credit system is unfair?
- How have you been negatively affected by the system and/or your credit card company?
Having your voice heard will get the banks where they belong — on our side. And with the banks on our side, the politicians will be on our side. With the politicians on our side, the credit laws will finally change.
Enough is enough.
I think this what happened I was contacted by Central Credit Svc Inc, 9550 Regency Square Blvd Ste 602 Jacksonville, FL 32225 Phone 888-904-1800 about amount of $6,118 to TOYOTA MOTOR LEASING Regarding account number: 7040316360139XXXX. I got mad at them and told them that it is illegal in the state of Texas but the account was in Virginia in the year of 2007 and they went to a judge and got an order. I have an apartment with section 8 so I pay only 250.00 per month but I do not think they will leave me any money. I called Central Credit one week ago to send them a letter of deletion and they hung up on me. Please send someone who can help me.
Good day, I agree that one’s credit score is highly leveraged toward business interests. Every business in the world enjoys the privilage of threats involving a bad credit report. However, businesses such as utilities, housing, medical care and state agencies do not share in the responsibility of reporting good accounts as a percentage of one’s favorable to non-favorable total credit history. Thank you,
BOA failed to credit my account acorrding to there policy. I made a tranfer according to another account the tranfer dissappeared. I had bills that were due out of my account. I called the bank to verify that the tranfer even existed they told me that there was no record of any such transaction so I made another transfer then paid all my bills. That night not only did the ghost transfer go through but the second transfer went through causing a major over draft in my accounts. I brought a screenshot of second the transaction showing that the inital transaction did not exist therfore I did it again after speaking with a banker. $867 later in over draft charges the bank declars that they are not at fault. I should have written it down as my proof. Well I came back with there policy on online transactions. They still refused to reverse the charges. And today it is on my credit because I REFUSE to pay them for their error.
Last night my fiance tried to purchase a car. After they ran his credit he was denied because he had a repossession on his credit report. As it turns out, his now ex-wife, but at the time of the repo, they were still married, told him that she sold the car. When in reality she didn’t make any of the payments on it and it was repossed. She had already purchased a car only in her name before she stopped paying on the car that had both their names on it. She purposely had the car repossessed just to mess with his credit.
He has been told there is nothing he can do about it since it was in both their names. Even if he sues her civally for damages she caused by not paying on the car, they credit bureaus will not remove it from his credit. He was told it will stay on there for 10 years!
I had a BK in May 2009 due to a failed medical spa I had built. I did not declare my home in the BK and kept making my mortgage payments each and every month. I have never been late. On my Equifax and Experian credit reports they have my mortgage listed as discharged in the BK. I wrote a letter per the program along with copies of a year worth of statements and cancelled checks as proof. They both responded that my claim was denied even with the proof and that I should contact my mortgage company if I have any further issues. My mortgage company does not seem to know that I exist even though they cash my check each month. I am not discouraged and I will continue to fight, I was just wondering if there is other legal recourse? Even with proof they simply and only listen to the mortgage company even when they are wrong!
I, like many others have been trying to clean up my credit mistakes. I’ve paid off various collections only to have them pop back up on my credit report from a new collections agency. Then, theres those cases where I’ve paid old collections off and my score only got worse. For the past year and a half, I havent had any late payments on my credit cards. However, my score is still being affected by the one late payment I had months ago for a car note I had just missed. This account has been paid off yet that one late payment has jeopardized my creditworthiness. I’m not saying people shouldn’t face the consequences for their actions but, its unfair when we are taken advantage of!