Re: Should the concept of credit reports be done away with?

Posted by observer (64.12.96.205) on August 25, 2002 at 08:33:45:

In Reply to: Re: Should the concept of credit reports be done away with? posted by Linda on August 24, 2002 at 23:53:05:

Chris,

I started in banking in the early 70's when access to credit reports was a cumbersome process and the information on the report was sketcy. The result. Banks were an awful lot smaller because, they did not extend much unsecured credit. About the only cc around was the Amex green card and Diners Club. If you were young or a single female or a person of color, credit was near impossible to obtain.

The question about things beyond your control affecting your credit is very emotional but, creditors have to know the entire story. The brutal fact is, if you have health issues or employment issues that compromise your ability to pay your bills, that is a sign of instability in your life for whatever reason and until creditors are darned sure that's cleaned up {the reason for the 7 years of reporting negative info} they need to be careful about extending credit. You do no one a favor lending them money they can't repay. Providian and Nextcard and Metris though they had the subprime market figured out. Didn't happen. Once the economy slowed and people with marginal job skills started getting laid off they couldn't pay and it didn't matter what the interest rate they were charged.

Credit scoring is here forever and with the dings lenders are taking look for it to get even more intrusive and unforgiving.

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