The Controversies of the Credit Score System - Learn to Deal With It
The Ancient Chinese military strategist and spymaster, Sun Tzu wrote in his critically acclaimed book, the Art of War: "Know thy enemy, for an army without spies is like an archer without sight.
" By identifying the weak points of your enemy, you will be in a far better position to actually counter their attacks as you can pre-empt them before they even occur.
In relation to the issue of personal finance, these words are especially relevant given the rather difficult position many consumers will no doubt find themselves in with the passage of time.
Of course, the fact that the global economy has underwent total meltdown recently has done little to improve the situation of consumers! The credit rating system, that all essential measuring standard by which peoples access to money from lending companies is determined will rise and fall according to the actual credit rating that the consumer has.
The system has been strongly criticised by many watchdog groups for a variety of different reasons.
One of the most controversial aspects of the credit score system has been that the consumer suffers unfairly and unduly through no fault of their own due to the nature of the speed of which records are updated.
Specifically, if a creditor does not provide up to date information concerning a settlement of an outstanding debt owed by a debtor then this means that that particular black mark will remain there on the file until it is challenged and appealed against by the consumer.
In other words, as a direct result and consequence of the carelessness of your creditor, you will find it harder to get a loan and will also be required to pay more money for the privilege of getting one.
Does that sound especially fair? No, it is not.
Sadly, the truth of the matter is that that this is the system as it currently stands and therefore, the onus has to fall to us, the consumers, to ensure that we routinely check our credit rating and ensure that we challenge such issues when we find them.
A free credit score system can make this a lot easier.
" By identifying the weak points of your enemy, you will be in a far better position to actually counter their attacks as you can pre-empt them before they even occur.
In relation to the issue of personal finance, these words are especially relevant given the rather difficult position many consumers will no doubt find themselves in with the passage of time.
Of course, the fact that the global economy has underwent total meltdown recently has done little to improve the situation of consumers! The credit rating system, that all essential measuring standard by which peoples access to money from lending companies is determined will rise and fall according to the actual credit rating that the consumer has.
The system has been strongly criticised by many watchdog groups for a variety of different reasons.
One of the most controversial aspects of the credit score system has been that the consumer suffers unfairly and unduly through no fault of their own due to the nature of the speed of which records are updated.
Specifically, if a creditor does not provide up to date information concerning a settlement of an outstanding debt owed by a debtor then this means that that particular black mark will remain there on the file until it is challenged and appealed against by the consumer.
In other words, as a direct result and consequence of the carelessness of your creditor, you will find it harder to get a loan and will also be required to pay more money for the privilege of getting one.
Does that sound especially fair? No, it is not.
Sadly, the truth of the matter is that that this is the system as it currently stands and therefore, the onus has to fall to us, the consumers, to ensure that we routinely check our credit rating and ensure that we challenge such issues when we find them.
A free credit score system can make this a lot easier.