The following is a guest blog from my husband, Randy.We both have been given the runaround with infertility treatments until time becomes our enemy. Anyone dealing with infertility and anyone going through credit repairs should read this post.
The Scam Known as Credit
Credit is necessary to conduct business and purchase homes, cars and many other items. So how is credit calculated? If you watch commercials on TV from Equifax, Experian, Transunion and Credit Karma, the assumption is a consumer has one credit score (FICO). The truth is far from the reality of the advertisements.
I recently applied for credit so my wife and I could finance IVF. After checking my scores, I assumed my credit was in good shape. However, when I spoke with the creditor I was told my score was significantly lower than what I had been given on the credit bureau sites. I was flabbergasted and frustrated. I called the credit bureau to inquire about the difference in scores. The representative explained to me the score I see is based on one score criteria, and there are 1000’s of scoring models. The creditor makes the determination of which scoring model to use.
This information was frustrating, infuriating and makes the possibility of having children through IVF almost impossible. It is difficult enough to be restricted because of insurance coverage or lack of. And then to add denial of financing, because of strict criteria and it becomes depressing.
This is extremely upsetting because unless you know and ask what the criteria is you would assume the score obtained on Credit Karma or one of the three bureaus is correct. So why are there so many models to calculate credit? I thought about this question and had several thoughts. First, depending on whether it is a secured or unsecured loan, more stringent criteria may be used. Second, the amount of risk companies are willing to take to loan money. Third, is a theory, but follow the logic. If the company uses a strict criteria, and the score is lower, then a higher interest rate can be used. This gives the company more money in interest.
As a consumer, it is unfair to be assessed 1000’s of ways. How can a consumer plan and work to improve a score if the criteria used is different from what the bureaus use. It is unfair and almost legal fraud. Bureau scores give a false picture and want to charge for credit scores and monitoring.
We as consumers need to get this practice changed. Many people are paying higher interest because of the many scoring models. If we are given a specific score from the bureaus then creditors should use the same score. This gives consumers an accurate picture of his or her credit and allows the consumer to get credit fairly.
© All original content copyright Randy Brannum, 2013-2016
