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 lender for about 10 years. I do not feel credit card utilization should affect score, nor inquiries. We are required to use credit to maintain a good score but are penalized when apply? And if we have never missed a payment, but balance is high we are penalized? Credit scoring should be solely based on payment history. Medical collections should not be allowed to be reported. Some may have a perfect payment history but no medical insurance. I also feel that creditors must provide legal proof of the debt before being able to report it. Both my husband and I have had numerous debts showing that aren't ours and WE have to prove they aren't ours. Its guilty until proven innocent. There are numerous changes that need to be made to the fico scoring system to not only make it accurate, but fair. For instance, Experian does not report a date of last activity, therefor a 6 year old collection may look current based on when the creditor reports. The credit system should also be more uniform between the "Big 3". Is there any reason why we need three credit scoring systems anyways? One would be sufficient.