Banks using Equifax

[Anonymous]

So I called just a couple of banks including my own to find that they use equifax, the slowest credit updating bureau between the 3! And here is my conspiracy on it. Use the credit bureau that is the slowest because it reflects lower credit scores which then the bank can the approve loans with higher interest rates to get more money out of their customers! Thats how they do it... Why is our govmnt not stepping in on that and stopping them and making them use all 3 or make the m use the higher of all your scores!!!

[Anonymous]

So you want the government to force financial institutions to use all three bureaus? Based on your comprehensive study of all of what, three banks? 

One ... banks have to pay for the services of bureaus, so their costs will go up, which makes their cost of doing business increase, which likely falls back as increased fees to consumers. 

Two ... kind of goes against the whole free market thing, doesn't it? 

FWIW .. my credit union pulled TU. 

I'm pretty sure the government hasn't made, or forced us to make, the bad credit decisions many of us have, which leads to lower credit scores, which is why you're complaining about banks using the score they choose over the highest of the scores of a proven bad debtor. 

FWIW .. when you apply for a mortgage, they lender takes the middle score of all three .. no matter which credit bureau it is. 

The truth of the matter is we are the result of our bad credit choices, no matter what the circumstances. The best part about that is we can fix it ourselves as well. 

Good luck

[Anonymous]

Well buddy since you were so nice to respond with such a gentle touch. Yes we all make credit mistakes.
I was young and dumb and went through a divorce that ruined my credit it has taken me less than 6 months to go from higher 500s to now 730s.
I was just simply saying why would banks uae the slowest updating bureau which will obviously result in higher interest rates more money out of the consumers pocket and more money or profit to the bank. Simple math.
I just dont think it's fair. Is all.... these are credit unions and credit unions are suppose to be in it for their customers. No maybe not have tp use all 3 since they supposedly do pay them then the better of the 3??? I mean I could potentionally pay an 6 to 8% apr on a equifax score while I could get a 2 to 3% apr with TU and Experian
Just saying...

[Anonymous]

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@Anonymous wrote:
Well buddy since you were so nice to respond with such a gentle touch. Yes we all make credit mistakes.
I was young and dumb and went through a divorce that ruined my credit it has taken me less than 6 months to go from higher 500s to now 730s.
I was just simply saying why would banks uae the slowest updating bureau which will obviously result in higher interest rates more money out of the consumers pocket and more money or profit to the bank. Simple math.
I just dont think it's fair. Is all.... these are credit unions and credit unions are suppose to be in it for their customers. No maybe not have tp use all 3 since they supposedly do pay them then the better of the 3??? I mean I could potentionally pay an 6 to 8% apr on a equifax score while I could get a 2 to 3% apr with TU and Experian
Just saying...

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Banks select the bureau that they believe gives them the best risk management data available to them. The do not do it so they can charge you additional interest. If you look through this forum you will find posts listing each of the bureaus as being the slowest to update. There is no conspiracy involved.

[Anonymous]

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@Anonymous wrote:
Well buddy since you were so nice to respond with such a gentle touch. Yes we all make credit mistakes.
I was young and dumb and went through a divorce that ruined my credit it has taken me less than 6 months to go from higher 500s to now 730s.
I was just simply saying why would banks uae the slowest updating bureau which will obviously result in higher interest rates more money out of the consumers pocket and more money or profit to the bank. Simple math.
I just dont think it's fair. Is all.... these are credit unions and credit unions are suppose to be in it for their customers. No maybe not have tp use all 3 since they supposedly do pay them then the better of the 3??? I mean I could potentionally pay an 6 to 8% apr on a equifax score while I could get a 2 to 3% apr with TU and Experian
Just saying...

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As has been pointed out ... there are many instances here in the forums about this bureau or that bureau being the slowest ... being the stubbornest, etc.  

For me, it's TU ... my TU numbers are 20 below the other two, but I don't blame TU. It is what it is. There is no conspiracy. 

As for rates ... acquaint yourself with the credit pulls database. 

[surferchris]

LOL...I understand your angst.

But we all have to remember that banks are not our friends, despite the commercials with people in love buying their first home, happy business owners getting lines of credit to expand, and middle-aged people playing with their dogs secure in their retirement plans.

The television commercials are just sales gimmicks.  The banks are in it to make money for themselves.  There is no conspiracy, just capitalism.  They are not your friends, nor your enemies.

Just never forget that no matter how high your credit scores go, it is just business, and if you ever have a financial problem again, they will cut you off from credit once again.

Good luck with your rebuilding.

[RobertEG]

If creditors were required to report to all three CRAs, then a statutory or regulatory requirement to pull each CRA might make sense.

However, credit reporting is entirely voluntary.

Credtors can choose not to report to any CRA, or to only have a reporting agreement with one or two of the big-3 CRAs.

Using the highest of reported scores would not make sense if one CRA clearly had more complete credit history, and thus a more representative score.

As for using the "slowest" CRA, updated reporting could result in either an upward or downward change in resulting credit scores.

A conspircacy theory would imply that score updates result in lower scores, and thus less favorable creditor offerings.

[Anonymous]

I feel your pain, but a lot of it depends on geography.  Everyone around me seems to pull EQ as well, which is my worst also.  It's not a conspiracy, just their prerogative.