The FACT Act of 2003: Notice and Request For Public Comment On the Effects of Credit Scores and Credit-Based Insurance Scores on the Availability and Affordability of Financial Products
I have been a victim of credit score for many years. Being also a minority does not help also. I have owned homes and cars; have paid for them, never had a foreclosure or reposession of a car. Due to poor or "fair" credit I have had to apply for credit cards with fees that encompass the whole credit limit. When I try to cancel them, I cant. whether I use them or not. This now affects my credit score. Medical bills that should have been paid by insurance, the medical institution approved the procedure, did not pay now my credit is affected by this. I have paid 18+% on car loan which I have paid faithfully. My last mortgage was bought by associates home equity, which then became citifinancial. I had a 13% loan, which I found out my rate on closing date, the mortgage broker was no where to be found the the real estate person, said just take you can refinance in a year or so. After I signed I found out I had a penality of 3 years. I paid that loan and eventually sold the house and lost because of the interest rate (2000-2002). I just could not afford the payment. On a 95,000 loan 13%. Here I am trying to build a house again. Chase has offered me a 8.25% loan. Well I own the land which is approximately $40-45,000 and the house costs $140,900. They told me that because of my middle score of 562 by experian that is the best they can offer me. Even though I own the land outright, which makes my downpayment more than 15%. There goes that score again. This score does not take into account the overall credit report. If someone sat down and looked at my credit report they will see that in the past 4-5 years I have had a credit card with Orchard bank (2yrs) paid never late. I have never had a bankruptcy, reposession and have paid all my bills on time. I just bought a new minivan in July 2005, the same americredit which I financed my old vehiche with never late in 3 yrs offered me a 16% interest rate. I had to laugh. That was a preferred customer rate!!! Chrysler financial however gave me a 4.9% interest rate. Remarkable Fluke?? I am just happy I think I deserve this rate based on my actual performance. Not just a score. I guess what I am trying to say is that the credit score affects the middle and lower income segments of the population disproportionately. If you are of higher income you either pay all cash not needing credit or have a high downpayment and credit does not become an issue. People are desperate to get a part of the american dream, and predators seeing this offer unhealthy (for lack of a better word at this moment) loans, high interest rates leading high payments. Thus ending in foreclosures, reposessions or decreased quality of life. Relationship hardships because of financial issues.