The Credit Cabal
Some good insight and thought provoking questions about the validity of the credit reporting system...
Ninety percent of American adults have credit reports. Your credit score depends on what the report says about your number and types of accounts held, length of history, late and overdue payments, whether cards are maxed out, and other information. Then creditors use that score, ranging from 350 to 850, to determine how much to charge for a loan. Someone with a low credit score, in the 500 to 589 range, may be assessed a mortgage rate that is three times higher than someone with an exemplary score over 700. Currently, according to credit bureau Experian, the nation's average score is 33 points shy of prime, at 677. Providian Financial Corporation estimates that if the average consumer credit score were raised just 30 points, Americans, would save $16 billion annually on lower credit card finance charges alone.
Full article from TomPaine.com
Ninety percent of American adults have credit reports. Your credit score depends on what the report says about your number and types of accounts held, length of history, late and overdue payments, whether cards are maxed out, and other information. Then creditors use that score, ranging from 350 to 850, to determine how much to charge for a loan. Someone with a low credit score, in the 500 to 589 range, may be assessed a mortgage rate that is three times higher than someone with an exemplary score over 700. Currently, according to credit bureau Experian, the nation's average score is 33 points shy of prime, at 677. Providian Financial Corporation estimates that if the average consumer credit score were raised just 30 points, Americans, would save $16 billion annually on lower credit card finance charges alone.
Full article from TomPaine.com
posted by Dave at 7:33 AM
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