Sunday, August 22, 2010

Thought of the Day 2010 #187 - Credit Scores

Prior to searching for Ivan's new car, I retrieved both of our credit reports from all three agencies. You can them for free once per year from, a site owned by the FTC, yes, the government entity. So, I looked at 'em, and despite a few minor discrepancies, they seemed accurate and clean.

What sucketh much about the free reports us that you don't see the "score," just the raw details. Most loan rates are based upon the numerical score, so unless you are willing to either pay, you won't get your actual score.

Once we go to the dealer with the car we wanted to buy, they looked up our scores. They were really high, so we were able to get the lowest interest rate available, which was pretty sweet.

While our interest rate was lowered because of our good rating, it really chaps my hide that the people who really need a low rate probably are the ones with the crappiest rating. I think it's just another sign that the rich get richer and the poor get poorer. While I know one can be poor and still have a decent credit rating, they typically have more debt just out of necessity. A higher debt load will significantly lower your credit score, even if the payments are made on time.

Oh, and another annoying thing. And credit company can request your credit score without you having an account with them. They are just fishing and looking for information on you that should only be given if YOU request it. I have six requests on my report from American Express. I don't have any accounts with them although I get the craptastic offers in the mail fairly often. Grrrr. Who really owns your financial information?? Clearly, it is not the individual. It's the credit agency. Are they looking after your best interest?? No, of course not. They make their money from the banks. Grrrr.