Credit Scoring is unfair

ea2009

I do not like the way credit scoring is determining who gets credit and who does not. Take me for example: I am going through a divorce and we have split the debt between us.

I am now even more determined to get out of debt and away from my ex-wife. However, during the separation, I have defaulted on payments, gone over my limit etc, as I need to adjust to my single salary and now pay more mortgage expenses etc. But, now all my loans and credit cards are up to date with payment and well within the limits.

All these credit cards that offer 0% interest for 12 months will definitely help me, as I want to pay my debt and never see a credit card again. But, because of my poor credit score, I can not get these cards and instead still must pay my current credit card 29% APR.

Therefore, the people struggling in this recession can not get any helping hand in paying off their debt, while people that do have a good credit score, prosper with a zero percent credit card, while people like me, pay for their interest and get further into debt.

I say, scrap credit scoring and get real people dealing with real peoples problems. One of the problems with this country's debt, is this stupid idea of a credit scoring system.

Pee

Agree, it's not fair. Divorce is very bad for your finances. If you are determined to pay it back, would a personal loan be an option?

ILW

ea2009 wrote: »

I do not like the way credit scoring is determining who gets credit and who does not. Take me for example: I am going through a divorce and we have split the debt between us.

I am now even more determined to get out of debt and away from my ex-wife. However, during the separation, I have defaulted on payments, gone over my limit etc, as I need to adjust to my single salary and now pay more mortgage expenses etc. But, now all my loans and credit cards are up to date with payment and well within the limits.

All these credit cards that offer 0% interest for 12 months will definitely help me, as I want to pay my debt and never see a credit card again. But, because of my poor credit score, I can not get these cards and instead still must pay my current credit card 29% APR.

Therefore, the people struggling in this recession can not get any helping hand in paying off their debt, while people that do have a good credit score, prosper with a zero percent credit card, while people like me, pay for their interest and get further into debt.

I say, scrap credit scoring and get real people dealing with real peoples problems. One of the problems with this country's debt, is this stupid idea of a credit scoring system.

I assume this is a joke.
You believe that by missing payments, going over limits, etc that you should get the same terms as people who manage their affairs perfectly?
One of this the countrys problems was lending money to people who for whatever reason could not pay it back. It is not the banks fault that you got divorced.

CannyJock

Credit scoring is a systematic method of assessing risk that treats everyone "equally unfairly". It's there to assess risk, not "need" or "fairness". It's maybe not perfect, but it's what we've got.

All you can do is learn the basics of how to paint the credit picture that providers want to see. Keep up the repayments and the previous defaults will become less significant.

sporedude

Lol are you kidding? The credit scoring works fine.

If you dont pay stuff on time = You dont get good benefits

If you dont pay bills on time = You dont get good benefits

Looks good to me.

Moggles_2

All these credit cards that offer 0% interest for 12 months would definitely help me but, because of my poor credit score, I cannot get these cards and instead still must pay my current credit card 29% APR.

Potential lenders cannot assess the way you handle credit directly. The best indications they have are the payment history and credit limits on your existing cards with other lenders and, to be fair, if this were not the case, some of their customers might feel less inclined to pay off their borrowings before moving to pastures new :rolleyes:

Admittedly, the best balance transfer deals are usually reserved for new customers, but you don't have to apply for a new card to get new credit. You may be able to cut costs using credit cards you already hold. For details, see Martin's *Credit Card Shuffle*article

http://www.moneysavingexpert.com/cards/cut-credit-card-interest

nzseries1

ea2009, you sound like you are saying that Britain should scrap a system which is based on facts and evidence in favour of one which is based solely on one's word.

I for one would not be happy about seeing such a system in place.

I'm not saying I don't think Credit Scoring is unfair, but I think that it's the lesser of two evils.

davethorp

I personally think credit scoring would be fine if it was based on data that was remotely accurate and verified rather than being little more than heresay, gossip and only one side of a story (ie the data the CRAs hold)

CannyJock

davethorp wrote: »

I personally think credit scoring would be fine if it was based on data that was remotely accurate and verified rather than being little more than heresay, gossip and only one side of a story (ie the data the CRAs hold)

Never had a problem with the accuracy of the data the CRA's hold on me. I had an incorrect financial association appear years ago with Equifax, I wrote to them, they removed it. Not really sure where you're coming from on your post.