|Received:||3/14/2005 10:07:53 AM|
|Agency:||Federal Trade Commission|
|Rule:||Notice of Proposed Study on the Effects of Credit Scores and Credit-based Insurance Scores on the Availability and Affordability of Financial Products|
Comments:I feel that credit scoring on a whole is a good thing. That being said, I think that the current system is extremely flawed. Those that are young or, like myself, didn't have any credit for several years are penalized because of a "short" credit history which makes your score lower. Also, across all 3 credit bureaus, you can have the same information reported yet your scores can be different (as much as 38 points in my case). Also, you are depending upon furnishers of information to report accurately. According to statics and personal experience we know that not all furnishers report accurately. One example is a very large, well know bank/credit card issuer, purposely do NOT report your credit limit. This automatically can and does hurt your credit score. If you receive a new credit card from them and charge $50 with a credit limit of $5000, they will list the balance at $50 and the high credit at $50 but since no limit is shown the score only takes the high credit to be the limit therefore showing that the card is maxed out when in reality you are only using 1% of your credit limit. I believe there should be some type of scoring system but the furnishers need to be held to a higher standard and the credit bureaus need to be made to do their job when a consumer disputes. They should not be able to just verify an item via a tape. This should have to be done via phone or written correspondence. As for insurance using credit scoring models, I feel this is absolutely ludicrous!! My credit does not have any affect on how I drive my car. Insurance rates should NEVER be able to take your credit score/record into affect. They should look at your history to see if/when you file claims to access the risk. Please investigate the system and find a way to make it better.