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 think the scoring system is incredibly unfair. I'm in a situation where I basically have no credit score because I have essentially nothing on my credit reports. I'm now looking to get a mortgage, but I'm forced to go with a subprime lender because up until this point, I have refused to put myself into debt needlessly. Just because someone doesn't have past credit or debts doesn't make them a deadbeat. People are being forced to play the "credit game". If they don't get needless credit cards or loans, then they cannot get credit for the big things that they really need like a car or a house. What loans they do qualify for end up putting them deeper into debt with higher interest rates and fees than a person with all kinds of credit history and debt has. Everywhere I've looked it has been said that the only way to build up your scores and get better rates is to start with a secured credit card and use it until you can get an unsecured card, EVEN if you never really needed that card in the first place. So, ask yourself, why would these businesses force people into this situation. More money. They can't charge people interest if they're paying cash for their bills, food, etc. So they force you to get credit cards, because if you don't they'll be able to force you into terrible loan conditions when you do need the credit. All because you refused to play the game.