Incomplete Assessment Leading to Distortions, Member 000005
Firstly, disputed accounts should not be used in factoring the score (one account on my report used in their rating was paid over 7 years ago and disputed repeatedly and should not be on the report. I am still working on disputing this. Another account was actually one that was double billed and the double billing amount was removed, this is not a charge off). Secondly, if the credit cards are utilized and paid off in full every month, this should not adversely affect a score, it should help it. Thirdly, shopping around for the best credit card deals, in the form of inquiries, should not impact credit. Things like unpaid bills should impact credit score, very late payments (past 60 days because sometimes there are disputes and inquiries to be resolved, which is the case in the 4 payments that were reported late, they were actually student loan payments in deferment until resolution, which I have disputed). CreditKarma also does not have access to my assets, so that is also skewered. Consumers should not be penalized for shopping around for the best deals and transferring balances and closing accounts. For example, there might be one that offers frequent flyer miles or other incentives, new products are constantly bombarding the market in the form of 0 interest or low interest rate, no penalty to a score should be assessed for browsing the market, this is capitalism after all. As long as all bills are paid on time and in full, even though the credit cards are maxed, Credit Karma does not allow for the balances to be paid off in full as part of their calculations. Also, a salary also includes benefits, which are not calculated in the net worth. So the approach taken by creditkarma is very imbalanced and present a false picture in that so much data is left out and so much disputed data is left unresolved only to say that"" Consumer disputes the Item"". Apparently, Consumer disputes are not calculated in CreditKarma's imbalanced, half- the picture presentation. Again, it is insane to penalize a person for shopping around for the best credit card deals. We shop around for the best deals on everything else. Again, it is insame to assume no assets, it is insane to give someone a good score without factoring in the length of time on a job. In theory, Credit Karma may give someone a great rating and that person may switch jobs every 6 months, and live off family and friends without ever paying rent or buying groceries, a highly unstable life, but yet may be a great credit score, A good history of rent/mortgage payments should be included in this score. This is not calculated in the score and for real, it should be. It is not hard to have good credit if you don't have to pay rent or mortgage because that is provided free or greatly subsidized and it is for a lot of people. So, payment of rent is not factored into this score. Timely payment of rent is a good indicator of stability. This is one of many factors that are not looked at. There are so many factors that are much stronger indicators of financial stability and financial sense that are grossly distorted and omitted in this approach. We are a society that shops around for everything, this is just smart, as I said repeatedly and should not be used in lowering a score. Also, if the consumer has repeatedly disputed something, that should be taken into account and left off the score, because people don't for the most part, dispute things unless something is wrong. Things like Pensions and health benefits aren't factored in, but yet we work at much lower salaries to have health benefits. HMMMM. Something wrong with this approach. HMMMM. So, lets see, you can owe no money, except your student loan, which you paid the principal on, but is all interest left, because of being in deferrment for so long, stay on the same job, pay rent on time, have a pension, pay your bills on time, shop around for the best credit card deals, and use your cards and pay them off every month, and let's see, have a bad score? Does that even make sense? In the past I had true credit problems from divorce, unemployment, underemployment, however, that has been more than seven years ago. I have paid the time penalty, never went bankrupt, paid what I could. Oh yes, I kept trying and failing, but I kept trying. HMMMMM. Something wrong here. Now, in the past seven years, I have not had the problems I have had in the past. If we take a look at the American population and the percentage of people who receive subsidies in the form of rent, health benefits, day care, food, education,etc. We are talking large percentages of the population. Credit Score should also take into account how much someone is subsidized and how much someone pays their own way. Granted we are all subsidized in that so many companies are subsidized by the Federal government in one way or the other, hence, the trillions of dollars of debt. (between the individual subsidies and the corporate subsidies) SO, the big picture is missed by Credit Karma. Those of us in the workforce are being squeezed to death, we get more and more education and certificates for less and less real money. Globilization and Re-Organizataion is the name of the day, labor becomes cheaper by the day, the prices of goods and services do not decrease to keep up with this. For real, this credit rating system does not give credit to the worker who stays on his/her job/pays his/her bills on time/ sacrifiecs pay for health benefits and pension/ gets more and more educated and certified and his/her own expense, only to maintain, pays his/her own rent, have a made my point? We are becoming a nation of have's and have not's. The have nots are provided for, the working class is exhausted and being asked to do more and more with less and less and for more certifications and education with the pay not keeping up with the increased cost of living, and I guess there are those who are just rich. This of course, would not apply to the multi - millionaires, although, it astounds me how many times I have read people that are far wealthier than I not paying rent or student loans or going bankrupt. And we don't know how many people with good scores have played games like bankrupting on a corporation, while running up all kinds of bills, but this will never show up on a personal credit score. There are many other games that can be played to get a good credit score, yet have very large amounts of money owed, yet never paid. The days of people living in the same house for 50 years, staying married for 50 years and staying in the same job for 35 years are long gone. So, I think the credit score formula should take a look at 1. Does the person rack up bills and never pay them, but yet reorganize in such a way immediately without paying the 7 year penalty to get a good score? Has the person been on the same job for at least 5 years? Does the person have a history of paying rent/mortgage? Does the person for the most part pay everything on time? The answer is yes for me to all of this. Yet, my credit score does not reflect this. So that is why I say the formula for assessment is full of omissions that lead to a distorted score. And again, if there are disputes by the consumer, these should be left off the calculation, because most of us will not dispute unless there is a real problem and the item should not be on the credit report or there is some type of unresolved issue that would lead to something not being paid. So we need a rating score for the average, unsubisized worker and another rating score for those who are subsidized. And yet another score for those who are ultra - rich. IF you are rich enough, you can fix any blemish pronto. However, the richest among us I think, are those who try to obtain qualifications and work at jobs, even though most of us are underemployed and under paid for the qualifications. I say we are rich, because we are rich in work ethic. Yet we provide services that contribute in positive way to our society and should be given credit for that. CreditKarma, has some inherent Karma problems of its own. We don't live in a static world, so we have to keep looking for new products, yet credit karma penalizes the consumer for this. It also penalizes the consumer for using their financial products according to the agreements and paying off their balance in full. That leads to distortion. This isn't a fair system to the masses of people who fall into the working class. It is in the financial industies best interest to give people low scores to up the interest rate. However, those who really have money, don't need credit, so rating them highly, is really a moot point. And so much of the money lent, if not all of it, is subsidied and/or bailed out by the Federal Government.
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