The credit reporting system is outdated and archaic. While the entire system needs to be updated to better reflect the current economic position of the average American worker, one major blight is the fact that applying for credit hurts your credit. Currently, inquiries account for up to 10% of credit scores. For those who have recovered from financial setbacks, or become recently employed, and wish to apply for various forms of credit, this means that simply applying for credit, or shopping around for the best rates on loans or cards, may hurt their score unnecessarily. This practice is classist, and favors lenders, while harming citizens. This petition specifically seeks to remove inquiries entirely as a factor on credit reports.
Thanks to rupixen on unsplash.com for the image!
