OPINION:
Do you ever get the impression that no one at the big three credit bureaus has ever used their own scoring system? Has anyone there watched their score drop 10 points because their algorithm didn’t like how much of their credit limit was used?
This algorithm assumes that you have no liquid assets to pay off your credit card. You could be the richest man on Earth but have a bad credit score because you like to use your credit card to pay bills. Elon Musk could right now be staring at a score of 500, scratching his head in disbelief.
This algorithm also doesn’t like it when you use it. I doubt if the algorithm writers ever watched their scores drop 10 points because they used it to do something crazy, like apply for a home loan pre-approval. It doesn’t matter whether it’s a “soft pull” or a “hard inquiry”; there should be no penalty for doing what the system is meant for.
No gas station owner wants their customers to come to their gas station, pay for fuel and then get hit with a penalty on their way out. For algorithm writers a little fuzzy on the probability of someone paying their next payment on-time with a 40-year record of paying every bill on-time, let me help you: it’s 100%. That person’s score should be 850.
I understand that the credit scoring system was created to help lenders, not borrowers, but with 206 million Americans having credit scores, the goal has to be perfection.
BEN FURLEIGH
Port Charlotte, Florida
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