Saturday, July 18, 2015

My rant about credit scores

So normally I TRY not to go on long personal rants. hahaha. But I am freaking out right now and you're all just gonna have to deal.

The entire "credit score" system seems like one large, intolerable scam. I have to have my credit run to apply for ANYTHING. Not just to apply but to get quoted on RATES. Then, every time I run my credit it hits my credit report and my credit score dips. So... what you're telling me is I can't shop around for MORTGAGE RATES, CELL PHONE PLANS, CAR LOANS, APARTMENTS, CREDIT CARDS, etc without it damaging my credit? That you are probably going to then RUN AGAIN when I make a decision about which one I want to go with. AWESOME. That's not impossible at all and makes complete and total sense.

So here are some so called "facts" about our credit scores:

  • Credit Card utilization is supposedly the most important factor in your credit score, and lenders want it to be under 30%.
  • Next up, is payment history. This one actually totally makes sense. The percentage of payments that you’ve made on time helps show how reliable you are in meeting your billing obligations. So thumbs up creditors for that actual logic.
  • Next is derogatory marks. Why this isn't first I have NO IDEA. Derogatory marks are accounts that are in collections, bankruptcies, civil judgments and liens. 
  • In the supposed "medium" range of importance is the age of your credit history. Which is pretty killer if you want to start your life off on the right foot and not open a bunch of credit cards just to be able to buy a house, or car. 
  • In the supposed "low" range is the one that is KILLING me, and I'm not sure how "low" it is, since it just dropped my credit score 30 points over night. (through no fault of my own. HERES TO YOU WELLS FARGO FOR RUNNING MY CREDIT WHEN YOU SWORE UP AND DOWN THAT YOU WEREN'T GOING TO) is credit inquiries. It stretches back to report ALL of your credit inquiries over the last TWO years. *eye* roll.
  • Another metric in the low range is your total number of accounts. This one, also, kind of seems asinine to me since MORE accounts is better, but LESS inquiries. How exactly do you suggest I do THAT credit gurus?
So, someone stab me with a rusty fork in my eyes please.

That is all for now.

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