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8 • Are Credit Bureaus set up
to be fair to Consumers?

fair unfair

No! Your credit report is just a device that allows lenders to charge very highest possible interest to those people who have lower credit ratings. Credit Bureaus are simply companies that are paid by lenders to monitor consumer payment habits, therefore, there is a general business bias to keep credit ratings as low as possible. They balance a fine line of fair reporting to find every reason to keep your credit score low just to enable lenders to charge higher rates. For instance, every time you apply for credit, like shopping different lenders to get a better mortgage rate, 50 points is taken from your credit score, so getting four quotes can cost you 200 points and make you ineligible for low rate mortgage! And probably makes you disqualified for any new mortgage and forced to stay and renew with your current lender or take any highest rate mortgage you can get. Now consider, that every time a person who is already struggling goes to get a pay day loan, they will penalize the credit score about 30 points for this new credit.

When you Understand Credit, You will have Great Credit!