by Anthony Megna

Created on: September 06, 2008   Last Updated: November 24, 2010

Not only is the credit rating system unfair, it is riddled with inaccuracies!  It is flawed, because the communication they receive from credit card companies is incorrect!  The credit card companies are "stacking the truth".

Let me give you an example. Suppose you have a credit card that decides you have too high a debt to credit ratio. Guess what they do? They lower your credit limit. When they lower your credit limit, it is very easy to go over the limit. Keep doing that and you are reported to a credit agency. Is that fair? Of course not. But the greedy credit card companies do it all the time. The reason why they do it is to collect the fees associated with going over your limit. Nice, isn't it?

Banks also used to do something similar. Assume you have a debit account and have one hundred dollars left. You have been shopping all day, are tired, but you need one more item. The item is over one hundred dollars. The banks will let the purchase go through so they can collect the fee associated with going over the limit. Now you have to authorize the charges, but it's the history of all the banks that tells me they are just in it for the fees. The banks make a ton of money on all sorts of fees, and this is just one more example of their greed. Doesn't sound ethical does it? Credit card companies are worse.

The credit rating system doesn't really check on anything except noting when and where you went over your limit. Or were late on a payment. It seems they will note anything down that a credit card company or a bank sends them. Trying to get these items removed is harder than breaking into Fort Knox.

The entire credit rating system needs to be overhauled. So much is based upon these ratings, that it makes it tough to do business such as buying a car, let alone buying a house. There needs to be an investigation on these agencies, and another fairer system needs to be put in place. It is just horrendous what some people go through.

What about identity theft. You are just plain screwed when this happens. Not only is your credit destroyed, it takes an awful lot of bureaucratic bull crap to weed through straightening this nightmare out. It can take years in some cases. When you have some time go ahead and read the horror stories on the Internet. It will send chills down your spine.

No, the credit rating system is not fair. Not at all. To think that people believe the garbage on these agencies books is a joke. The problem is, it is very tough to remove it. It is like something has invaded your life and you don't know what it is. In fact, it is downright scary.

Let's call for a congressional investigation on the credit reporting agencies. They are already investigating the leeches doing business as MasterCard and Visa, which they should have done a long time ago. Now it is time for the credit rating agencies!

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