Over the last three decades the financial industry has created a beautiful loop for itself. This “loop” has not only allowed them to dominate financial dealings throughout the world, but has increasingly allowed them to be the most dominate group of organizations on the planet.
Since the 1950’s, Fair Isaac Corporation, (FICO) has been the major system for determining our three digit credit scores. Now, the three major credit repositories, Trans Union, Equifax, and Experian, all multi-billion dollar corporations, have pooled some of their considerable resources to create a new scoring system that incorporates a variety of factors not present in the FICO scoring system.
The recent Wells Fargo scandal is raising many questions among so called management experts regarding the size and scope of the world’s largest banks. Many of their critics think their corporate bureaucracies have become too large and are virtually unmanageable. When you look at the number of their customers that were victimized by this debacle, it certainly gives you pause.
Normally, I write about solving your debt problems and improving your credit worthiness relating real life stories I have encountered in my years of working with people who need help with their personal finances. This time, however, I have relayed some of my thoughts about the broader picture of debt management and why it has become so important for so many people.
Recently, I caught and article in my local newspaper about the above mentioned topic. It brought back to me a number of memories about helping our customers decide what do about their debt problems and what resources are available to help and which ones they should choose. They article was written by Liz Weston from “Nerdwallet” a website that provides consumers with financial advice and information in a number of financial areas.
With many top card companies improving on the promotions they have offered to include more cash back, extra perks, sign up bonus rewards, its a great time to be in the market for a new credit card. That is, of source, if you are keen to go further into debt than you already are.
Credit repair companies have been around for many years. A quick check of the Internet reveals that there are a number of choices. In fact, there is now a web site that rates the top ten credit repair companies in the country and you can even buy a franchise to start your own CR company. So it brings up an important question. What do these companies actually do to repair your credit and what are you actually paying for? In other words, what do they know about fixing your credit that you don’t?
On November 3, 2015 I published a log and referred to a former client of mine whose credit was ruined when he purchased items with his credit card and had to return them. He contacted the credit card company by phone and asked them to rescind the charges which they neglected do. When he subsequently refused to pay the charges the credit card company posted his account on his credit report as delinquent. His credit was then ruined and he spent months trying to correct the problem.
In my many years of working in and around government I have been continually frustrated with the maze of bureaucracy and its constant growth. When I look at how many State and Federal agencies are listed in the various directories I often wonder how and why they were conceived and what the people who work there actually do!!
A credit report is like a thermometer. It reflects a credit profile at a point in time. Depending upon your credit history it may contain both a positive side and a negative side. In order to significantly improve or maintain a credit score, both sides must be dealt with equally.