Credit Score Rant

I saw a friend post this link on facebook today. This quote basically sums up the post, "I've come to the realization that it's [credit score] complete bullshit."

I’m going to go ahead and second this guy’s thoughts. He lays out a lot of the points I would make myself. Basically, your current credit score, depending on how you handle your money is not an accurate reflection of your credibility as a borrower (not for me anyways). I say this because I have a shitty credit score (low 700’s on two, under 600 on one--and that’s the highest it’s been in years), even though I’m now making and saving more money than I ever have.

I have no student loans, no car loans, I basically don’t owe anyone anything. And that counts against me. The fact that I manage my money responsibly and avoid living beyond my means or accruing debt has done nothing to help my credit score. Black marks on my credit score include: an unpaid $175 early termination fee I refused to pay to Verizon on principle (which I eventually paid anyways), and which was eventually part of a class action lawsuit, which Verizon settled. And the fact that I have no credit cards. Can I get a credit card? Nope. Why? Because my credit score is low. Even my bank, who can see my deposits and the balance I carry, wouldn’t help me with a credit card. Yet, amazingly, I get tons of junk mail offering me credit cards. Which I apply for and get rejected. How am I still on these mailing lists? Idiots.

I've also heard that checking, or having people check your credit score counts as a negative mark against you. So trying to get a credit card is a negative thing, but not having one is also a negative thing? Perfect.

Part of me wants to say “fuck off” to the whole system, never have a credit card, and deal with everything in cash. That part of me is extremely unrealistic and would probably also own a gun, so instead I’m working to fix my credit score. Even though I don’t believe in it and I hate it.

(Full disclosure: I do have a credit card now, because I’m on my wife’s AMEX account. My unemployed wife who has a sparkling credit report and $25k in student loans. If anyone has connections in the education world in NYC, let us know...)