Congress considers credit-reporting overhaul, including putting government in charge of scores
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Best episode of Black Mirror ever.
This shit had me laughing so hard when I first watched it.
Poor Karen.
You will need a higher score to get a worse deal. If you have the money and can afford your house being appraised for 50k less for a few years because you're not going anywhere or you have a good loan then its fine if you can get in now. if you're buying a car you pay more now because the supply is tight. Next year, supply might be good but interest rates will need to go up at some point and some of these other issues will settle down and the easy cheap money won't be so easy or cheap. You have to watch what happens when they allow foreclosures again and if the numbers start to tick up, the lenders will have to re-evaluate their criteria.
I had to buy my daughter a car and i know we ended up paying more than I expected but everyone has a little more than they expected. we had extra pandemic money so it ended up getting spent. But if I didn't have to get a car I wouldn't have.
Talked about. They haven't actually done shit but talk so you did the right thing.
Signed into law right after the civil bill and the tranny bill.
Thanks for the info. I wouldn't buy a car at this time anyway. Houses in metro New Orleans is about 250k for a matchbox house these people are nuts.
Best episode of Black Mirror ever.
This shit had me laughing so hard when I first watched it.
Poor Karen.
What's some moe good episodes... brah
Lol I’m taking the kids to the Nickelodeon park in Minneapolis. I’m dreading it.
1. Black Museum” (Season 4, Episode 6)
Real deep stuff with this one, bruh.
2. USS Callister” (Season 4, Episode 1)
Sci-fi nerd cocaine with this one
3. "Striking Vipers" (Season 5 Episode 3)
is a great one but went far with the homo ending.
Appreciate it... Kinsfolk
Hell yeah took time to build my shit to 800+ dont fuck with my shit now.
Shit so my labor being the same price it was two years ago is laughable?
Hell yeah... materials and labor.... married... brah
This will help a lot of people. I was fortunate to learn about credit literacy from my Pops but a lot of friends started off with fucked up credit because their mom put bills in their names and college credit cards with usery rates. I don't know how people survive with fucked up credit. Good credit is an equalizer to a lot of bullshit that we face in this kkkountry.Congress considers credit-reporting overhaul, including putting government in charge of scores
Three reporting bureaus establish consumer credit scores. But that could change.
Amid all of this week's news, one potentially game-changing piece of legislation seemed to slip under the radar: the idea of dramatically overhauling the U.S. credit reporting industry.
"Good credit is a gateway to wealth," said House Committee on Financial Services chair Maxine Waters, D-Calif., said Tuesday. "Yet, for far too long, our credit reporting system has kept people of color and low-income persons from access to capital to start a small business; access to mortgage loans to become homeowners; and access to credit to meet financial emergencies."
Waters added that the House passed two bills out of the committee before the pandemic – the Comprehensive CREDIT Act and the Protecting Your Credit Score Act of 2021– which "provide long overdue reforms to our credit reporting system."
Both bills are now back under consideration.
During Tuesday's hearing, Waters and her committee heard from consumer-protection advocates like Chi Chi Wu of the National Consumer Law Center, who proposed replacing the privately-run three-credit bureau system with a public credit registry. It would operate under the umbrella of the Consumer Financial Protection Bureau, which guards consumers against unfair or abusive practices.
"While public agencies are not perfect, at least they would not have profit-making as their top priority," Wu told the House Committee on Financial Services during her testimony. "They would be responsive to public pressure and government oversight. They could also be charged with developing credit scoring models to reduce the yawning racial and economic inequality in this country."
Wu added, "The fact that these are private, profit-seeking companies explains why the credit bureaus are constantly expanding their products into uses, such as employment, insurance, and tenant screening, that ultimately harm Americans and contribute to the massive inequality in our nation."
Waters noted that creating a credit reporting agency that is consumer-oriented "would be a major upgrade over today’s broken, biased credit reporting system."
In addition to the single credit bureau idea, Wu also proposed several other policies, that, if implemented, could improve the financial lives of Americans struggling to improve their credit scores and financial lives:
To illustrate the impact of COVID on consumer credit, Waters shared a story:
- Prohibiting the use of credit score information for purposes unrelated to credit decisions. This means most employers could no longer use credit reports in their candidate screening process.
- Reduce the amount of time negative information remains on your credit report. Information like missed payments and collections would fall after 4 years instead of 7. Bankruptcies would continue to stay on for 7 years.
- Limit the reporting of medical debt. They would prohibit the reporting of medical debt for medically necessary services and delay the reporting of unpaid medical bills for one year to give you time to resolve issues with hospitals and insurance carriers.
- Protect economic victims of COVID-19. The lawmakers hope to put a moratorium on the reporting of negative information incurred during the pandemic and other disasters.
How things work now
Currently, Americans have multiple scores from each of the three major reporting bureaus. Scoring models vary in how which factors are weighted more heavily but all credit scores are used to evaluate a person's ability to manage credit and debt. They're used to decide who gets a car or home loan, credit cards, apartment.
These factors include:
The goal: Eliminate errors, ensure fair practices, end confusion
- Payment history (Are you consistently on time or late paying your bills?)
- Credit utilization (How much of your total credit are you currently using?)
- Length of credit history (How long have your credit cards and loans been open and are they in good standing?)
- New credit (Have you been frequently applying for credit lately?)
- Credit mix (Do you have a variety of credit, such as loans and credit cards?)
Fixing mistakes on a credit report (let alone, all 3 versions) can be a byzantine system of filling out forms and phone calls.
"The fact that their customers are creditors and other users of information explains the unacceptable error rates and bias against consumers who complain about errors," Wu argued, adding that, "if consumers are not able to obtain legal redress for FCRA (Fair Credit Reporting Act) violations, a key means of enforcement disappears, making the broken credit reporting system much, much harder to fix. A public credit registry would replace or provide an alternative to this broken system."
Both Wu and Waters referenced a recent Supreme Court decision, which narrowed the case brought by an Arizona man who had successfully sued Transunion for relief after a car dealership's credit check incorrectly flagged him as being on a terrorist watchlist.
But even smaller errors can cost you over the long haul in the form of higher interest rates on mortgages and car loans – or possibly getting a mortgage or rent application denied, even if you satisfy the income requirements.
Crucial FICO scores in need of updates
In order to help consumes protect their credit during the pandemic, the bureaus have extended the availability of free credit reports until 2022. However, these reports usually do not include your FICO scores. Those you usually have to pay the credit bureaus for – especially if you want to see the ones that will be used when you go to buy that house or car and get an idea of which rate your qualify for.
Another problem related to mortgages: Although both FICO and Vantage scores have been recalibrated to reduce the impact of medical debt, those aren't the ones used by Fannie Mae and Freddie Mac during the mortgage-underwriting process. So to streamline the process, many lenders use the same less-forgiving FICO 5 (Equifax), 4 (Transunion) and 2 (Experian) scores and often take your middle score. And again, these are scores that consumers usually have to pay to see. They're also used to evaluate rental applications.
Your credit score also impacts your auto insurance payment, determining whether you can afford to drive that car to work. It might even factor into whether you get that job.
"It’s essentially the report card for a consumer’s financial life," Wu said. "Yet for such an important record, credit reports and scores suffer from profound problems and abuses."
Congress considers credit-reporting overhaul, including putting government in charge of scores
This week, Congress discussed updating the U.S., credit-reporting system, including moving control from the 3 bureaus to a single government agency.www.usatoday.com
Indeed. My shit is a 804.
The greatest advice I have heard this year. Also, If you got to use a credit card, do not go beyond 25% of your credit limit. Also, pay that shit off at a minimum of 2 billing cycles.
Good shit fam. Good luck. A good plan and a good man are hard to stop!
Next summer around one of the summer holidays.
Don't forget the nots are out here ruining fine dining. It will explode, course correct, and we will be back to business as usual next year. That stimulus and unemployment paper are on their last legs.
I should have been flipping wire instead of PS5s.
Any inquiries? That shit can hit your credit too. The system is janky as fuck. I was near 820 at the beginning of the year and after paying off a credit card my shit has been consistently 804. It basically encourages you to keep using credit.
You can't tell me it ain't a scam!
And can't nobody explain the shit, no industry insiders, no former credit bureau exec, nobody?!
I stopped paying close attention to mine after I bought a house cuz it wasn't doing nothing but pissin me off
What about a used truck?
Unless it is electric or hybrid I wouldn't buy a new vehicle. Get a used certified that is no more than 2 years old. Summer holidays are always a good time to buy. I wouldn't buy anything until next summer though.
Im with you. Im between 830-850 and I did it by sacrifice and conservative financial habits. There's inequality sure. But tired of these proposals that seem to reward irresponsible pet
two words - Mitch McConnellTheres no chance this passes the GOP is against big government.
if you can find one. it's a seller's market right now. But if you find one you want, get it. A house is an appreciating asset.
Ok My $40 yards going to $50 now
No question. In particular, IMHO, having someone do a 7 year credit bid on one late payment is ridiculous. So many people that have had to use their credit cards or be late on a payment or 2 due to the pandemic are fucked for 7 damn years, almost a decade of your life.
I fell into the second category, soon as I graduated high school, got hit up with college credit card offers. Was gonna decline, but elders advised me to get it but didn't explain anything about how to use credit. Score was in the low 600's around college graduation time. While certainly it's not the credit systems fault it was never explained to me, it shouldn't put you in credit hell for that long. 4 years is a lot more reasonable. Took me a long time and a lot of effort to get into the 700's but it took me till my late 20's to get there.
If this happens they gon' FIND a way to fuck black people over. yte folks already be having 800+ off of working for 6 months collecting butterflies or organizing colored pencils or sum shit like that. Now Uncle Sam gonna make sure they get what they want/need... while we gonna hear "I wish there was something I could do".....
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SHEEEEIIIIIT! I got a homie out and LA who said the exact same thing a shack is going for top dollar!
brilliant idea!
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