Another Key to the US Crisis

[Anonymous]

Am I the only one who seems to think that credit scoring is one of the keys to this crisis...Think about it, our life now revovles on credit, insurance, jobs, cell phone service,cable service and so on.

Problem is, ok so you miss a payment, go through a divorce, or some major illness that causes the score to drop,BUT are you ever really forgiven by the score? Yes, this may remain on your file for 7 years like a criminal record, but why does it take so long for the score to come back up, when it takes a split second for a 50-100 point plunge the minute you slip??

So going back to the issues we all deal with, if we move on and are ok after say 6 months - 1 year, why is the score not back to where we left off?

Now, we most have a bad score and those with a 600 are still a risk that banks dont want to lend to us. We never become good enough again to borrow with out being punished with an outrageous rate for 7 years.

This is why people are not buying things.. Not many of us have the cash to buy it all up front. The market was thriving on people who finance from their house, to cars, furniture..

Why isnt congress doing something about these unfairing scoring processes. Having bad credit has seem to become that greater over being a convicted felon!! Who are we supposed to talk to??

[MidnightVoice]

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julieray419 wrote:

Am I the only one who seems to think that credit scoring is one of the keys to this crisis...

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Absolutley.  If the greedy people running the financial system had used credit scoring properly there would have been no subprime loans and risky CCs, hence no housing bubble and no massive CC debt, hence no mortgage and credit crisis, hence no recession 

[Anonymous]

AAAAhhhhhhhhhh..........if we only knew.

[Anonymous]

In my opinion leverage is the key to this crisis.  This is the fault of both the lenders and the borrowers.  No one wants to put up any of their own money when buying a large ticket item and lenders for the longest time went along with it.  Now that things are tough, people can't sell whatever they borrowed against for at least what is owed.  As a result borrowers are walking away from their obligations and lenders are left holding the bag.  Had borrowers put some money of their own in up front, they could more easily get out of these tough situations and they would be less likely to walk away from their obligations.  As both sides should have known what they were doing when entering into these sorts of agreements, I don't feel sorry for either side.