Re: The Hill publishes flawed argument about FICO scores
04-12-2012 02:01 PM
It appears to be written by someone that has no understanding of the credit system. Our lawmakers mostly don't live in the real world or have any idea of how it works. This is just one more example of how poorly a lawmaker did his research before demanding another useless new law.
Very telling is the comment about a "perfect credit score". I would think anyone that even did a small amount of research would understand that it is not a 0-100% system. Also interesting that he thinks someone with "only a few late payments" would expect a score in the "seven or eight hundreds". He is dramatically exaggerating the effect if inquiries and ignoring that they only come about as a person applies for credit. I'm sure the actual statistics involved would be way over his head.
He might as well be saying "I don't have any idea about this BUT I think we should pass a new law to regulate this system".