Are Credit Scores Really Good for the Economy

The Credit Master

A couple of weeks ago my brother and I were sitting and discussing the state of affairs in our nation, he made an astute comment about setting up a moratorium on credit scores this would be a great incentive to increase more spending and get the economy moving. The question I have often asked is why is it that we are slaves to the almighty credit score. This is one major obstacle that hinders our nation from true economic recovery. Our nations middle class is held hostage by the banking system who continue to keep their pockets full and the rest of America (with exception of the wealthy ) in a constant state of financial purgatory.

" Money is to the Economy as Oil is to the Engine."

The moratorium will begin on a particular date and it will be in affect for two years and as such it will assure that consumers will not be solely judged on their ability to make a purchase based mainly on there credit rating but other factors will be taken into consideration such as employment history , and financial income. Some middle class workers employed for multiple years have been stymied in their ability to make purchases of homes , cars, small business loans, even a toaster all because of the almighty credit score.

A credit score moratorium will encourage consumers to start spending more, possibly leading to increase in GDP sales such as cars,and homes ,even helping previous home owners who after facing or going through a foreclosure are more educated and if given a shorter sentence of negative credit rating would jump back into the market, if financially able. The rules will be stricter but since we immediately bailed out AIG, and other banking institutions when they failed why not the consumer ? who makes it possible for these big banks to continue.

They Changed the Rules

At one time a credit score of 685 or 700 was considered a good score but now it is considered just above fair. The credit score rules our lives even though the market was saturated with foreclosed and financially challenged citizens some how the credit score numbers value increased now.. what was excellent is now good and what was good is now fair and what was fair is now poor.

Free Credit Score Lie

There is no such thing as a legitimate instant free credit report unless one is willing to pay for it up front. Companies who pull your credit will only except the report from their in house agency. Even if you send for a report directly from Trans Union, Equifax, and Experian it would not even be recognize as a legitimate report because it is coming from the consumer and the bottom line is they want to charge you for the report, $25.00 , $30.00 or higher just to pull the report this is a rip off scam.

The Pursuit of Happiness

God help you if you are a minority especially African American and or Latino it appears you will suffer the red zoning curse for being African American. The news reports have informed the public of cases where African American credit scores are always significantly lower then other consumers even if they pay their bills on time, and have no credit issues. Generally speaking if an African American has a 680 plus credit rating it will remain under 700. This has been used by some to offer higher interest rates and sub prime loans to mostly African Americans thus assuring that African Americans remain in a constant state of limited advances financially.

If our country is serious about living out the true creed of the Deceleration of Independence and our Constitution then there should be a system were we do away with the unfair practices of discrimination within the financial sector. The Wealthy do not have to worry about credit scores, case in point particular movie stars and celebrities, politicians and dare I say preachers are given swag items that we ordinary citizens would have to have a credit score of almost 790 or higher to obtain. Paris Hilton does not need free gifts, George Bush, Dick Cheney, or George Clooney all of their credit score can be as low as 550 , but it does not matter because the wealthy are well taken care of.. while the poor and the middle class are judged by a number.

Bottom Line

Finance Metric Online states " We know using more credit might affect our future plans. Yet we keep using it. If you have a bad score, you will find it difficult to get a job, rent an apartment, buy a car, or even a cell phone plan for your iPhone. But to get a good score, as mentioned earlier, you need more credit. Without using credit, you are not even allowed to have basic amenities."

My Father never believed in credit he was born in 1910 his motto was if I cant buy it I don't need it. We are under a new set of rules were even if you pay off your debt it can hurt your credit score. We are living in a Bizarro world were wall street makes the rules for main street.

Of course this is a pipe dream for those of us middle class citizens who don't have the money to lobby particular leaders in congress to back such a revolutionary idea.. could you imagine how the banking industry would squawk at taking away their ace in the hole in assuring that they and the crooked politicians who don't worry about credit scores remain in control of our nations middle class financial setting.



K. Gerard Thomas

http://www.financemetrics.com/how-helpful-is-credit-score-in-our-lives/