Why are people slaves to their credit scores?

[Jahpson]

Originally Posted by dr. twiggers

I struggle with this. I stress about my credit score and for some reason I relate it to my self worth. Like it exemplifies how responsible I am. Makes no sense whatsoever...and I'm slowly trying to let go of those distorted thoughts. It's like it has been drilled into our heads though. Commercials everywhere suggesting that you're somehow incompetent if you don't check your credit score or know your score. But really...unless you plan on buying a home or financing a new vehicle, then it's pretty useless (unless you are in banking/finance where they might check your credit - HOWEVER, you can write in explanations on your credit report for why there are negative items).

yes like the freecreditreport.com commercials. The guy that is always singing the blues of what happened with his low credit score. Pretty sad

[plain jane doe]

Originally Posted by Jahpson

yes like the freecreditreport.com commercials. The guy that is always singing the blues of what happened with his low credit score. Pretty sad

The government is actually spoofing this commercial in their own commercial against this commercial.

[Jahpson]

^ come again? lol

[plain jane doe]

NYT

[wimpy]

While I wouldn't ask about a credit score on the first date, it's certainly a legitimate discussion with someone you're serious about.

My good friend is married to a great guy with a lousy credit score, and it's definitely put some stress on their marriage. We have comparable homes purchased for almost the same price, but they pay a lot more each month because they weren't able to get a really good mortgage rate due to his credit history. They also pay a high rate on their car loan.

And just as they were getting a good record built, he lost his job due to widespread layoffs at his company and is now looking for work, making the higher mortgage payments and car loan even more difficult.

[Odette]

I hate that so much hinges on your credit score - getting a car loan with a decent rate, buying a home, etc. It stinks because there could be a legitimate reason unrelated to not paying your monthly bills on time - identity theft, medical bills spiraling out of control. I mean, if you had a severe medical emergency that costs hundreds of thousands of dollars, and your insurance only paid 80%, that other 20% is still a humongous sum of money that many people who are responsible would not have the money to pay.

I just feel like more should be taken into account that simply the score - what specific item is bringing it down? If it's a bill that was once in collection that has now been paid in full, should that really hurt you anymore?

[dr. twiggers]

^^^fortunately mortgage companies will really look into things like that, but car loans, etc. usually don't.

[BTBF]

Originally Posted by barcreperie

A person's credit score is an indication of their integrity and sense of responsibility, but not without caveats. Some things out of a person's control might affect their credit score.

I agree with you. A about a year or two ago, I called to cancel some of my cards and I believed they lower my scores because of it. I cancelled because I thought the less cards one has, the amount one owes is lessen, therefore, higher scores.

I never paid attention to my scores until I was trying to buy a house.

When you are buying something = The higher your scores, the less you have to paid in interest(money...)

Late payments = extra fees(money...not to mention lower scores((money)) again), so if one cares about money, don't pay late.

Credit scores = $$$; We work hard for our money...we spend half of our life making it, so in a way...it's good to care.

[vhdos]

Why are people slaves to their credit scores? Answer: because they should be if they want to play by the rules. There has to be some type of standards by which the creditors can rate people. It's like anything in life. You work for it. You earn it.
Is it a perfect system? Absolutely not. I've personally dealt with misinformation on my credit that subsequently, but temporarily, lowered my credit score.
I'm proud of my credit score.

[Grace123]

I believe we are slaves to credit scores because we are a society based on what we have, not who we are.

My opinion.

[vhdos]

Originally Posted by Grace123

I believe we are slaves to credit scores because we are a society based on what we have, not who we are. My opinion.

I agree to a certain extent, but owning a home or a car can be basic necessities. A good credit score is not just for mansions and Mercedes...

[BigPurseSue]

I have no idea what my credit score is. I refuse to pay to see a computer-generated number that is being passed around about me like a baseless rumor that by rights I should be allowed to see for free.

Credit scores should not be used to determine one's fitness for employment or one's insurance rates or many of the other things they are currently used for. They should only be used as an indication of one's credit-worthiness, but they have become meaningless in even that regard. (So you paid off all your home and car loans over ten years ago and now use credit sparingly and judiciously--that is supposed to mean you're a bad credit risk?) It's thanks to the ambitious marketing of credit-score grantors like Free Isaac that these nearly meaningless scores are now regarded as magic numbers, the retail version of psychological test scores that supposedly can predict any number of human behaviors.

I truly believe we need legislation to both limit what these scores can be used for and to make the score granters more responsible to consumers.

[jwhitlock]

Wow, interesting topic. I would agree with you. Unfortunately, our society is so materialistic and grossly competitive.

[jenskar]

The credit bureaus have done a very good job of getting people to obsess over their credit scores -- freecreditreport.com? It's not the free report you're entitled to every year -- but you see a kazillion ads for it. Everywhere we turn, someone is telling you you better be concerned about your credit, and banks, credit card companies and auto loans are all pegged to the scores, at the same time that I can guarantee you, if you have great credit, you're going to get many many many offers of new cards in the mail, which, if you start to open too many new accounts to take advantage of all those points, etc etc will ultimately, lower your credit score.
I find many of my new customers tell me their credit scores (when they're high) -- it's a huge badge of honor to them. At the same time, it doesn't tell me they can get a mortgage for the amount of money they wish to borrow -- which frankly, is just as important.

[Grace123]

Originally Posted by BigPurseSue

I have no idea what my credit score is. I refuse to pay to see a computer-generated number that is being passed around about me like a baseless rumor that by rights I should be allowed to see for free. Credit scores should not be used to determine one's fitness for employment or one's insurance rates or many of the other things they are currently used for. They should only be used as an indication of one's credit-worthiness, but they have become meaningless in even that regard. (So you paid off all your home and car loans over ten years ago and now use credit sparingly and judiciously--that is supposed to mean you're a bad credit risk?) It's thanks to the ambitious marketing of credit-score grantors like Free Isaac that these nearly meaningless scores are now regarded as magic numbers, the retail version of psychological test scores that supposedly can predict any number of human behaviors. I truly believe we need legislation to both limit what these scores can be used for and to make the score granters more responsible to consumers.

COMPLETELY agree!