Banks, credit card companies and other lending institutions have become dependent on credit scores as a factor in deciding whether to grant a loan or extend credit to any individual. Doing so is unfair to the so-called "credit invisibles" who are otherwise financially stable. Moreover, credit scores are prone to manipulation and erroneous reporting.
I am petitioning the Federal Trade Commission to please reconsider using credit scores as the most important, and often the only metric, used in assessing a borrower's creditworthiness. Banks, credit card companies and other lending institutions have become dependent on credit scores as a factor in deciding whether to grant a loan or extend credit to any individual. Doing so is unfair to the so-called "credit invisibles" who are otherwise financially stable. Moreover, credit scores are prone to manipulation and erroneous reporting.
It is understandable that lending institutions do need to look at credit scores as a way to protect themselves in case the borrower defaults on their loan or abuses their credit card. Nonetheless, they should strive to obtain a clearer picture of the would-be borrower's financial profile by taking a look at their bank records and bill payment patterns. Doing so is a healthier and more accurate way of assessing a person's financial stability and creditworthiness.
It is also rather unfair that credit scores affect a person's ability to find a good home, a better job, and even to replace their phones. It's really time to reassess the importance of credit scores in financial matters.
Respectfully,
Nina Hill
Project Manager, FreeCreditScoreGov.com
