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Posted in Credit Scores
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Question By
Toastingham

5 Contributions
1 Person Helped
Thank God For Credit Scores!
OK, this isn't technically a question, but I know a little about the history of credit reporting and believe the modern scoring methods invented in the 1980s give those of us who've screwed up in the past a better shot at a second chance than the bad old ways.

It used to be, one mistake and no one would lend to you for seven years, except maybe a rip-off "finance company" and even then it was like getting a root canal w/o anesthetic. It's always easier to think in terms of black and white rather than shades of grey, and that's even more true without an accurate measurement of just how grey that shade is....

Also, before credit scores were invented, credit reports contained a lot of personal information which could be used to embarrass people and was later proven to be financially irrelevant, such as "shacking up with a boy/girl friend", "throws loud parties", "possible homosexual", etc.

Some lenders created their own scores, but they were wildly unscientific and unreliable, so the standard you had to meet was higher than necessary. The invention of the mathematically sound credit score was really revolutionized lending.

Now if only they'd come up with mathematically sound "rental history scores" and "criminal history scores" so people applying for jobs and housing are assessed fairly, this would be such a boon....

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