Why Does Your Credit Score Drop When You Shop?
Fred Bieling has this to say about credit ratings:
"I'm no economist, but what I want to know is how a person can have his credit rating lowered every time he or she shops around for something, cars, car insurance, anything in which credit is checked. I know what the answer is, it's been explained to me that shopping around raises a red flag with creditors.My reply:
That excuse is bullcrap. It's economic discrimination. If you have an 800 credit score, your pretty much going to get the lowest intrest rate possible. But if your in the 600's for whatever reason, your going to take a bigger hit if you even try more than two or three car dealerships to get an accurate idea of what your monthly payment is going to look like.
That is not fair. That's the problem I have with interest.
"That's a brilliant observation, Fred. It makes perfect sense now.In fairness, there are dissenters. Jim Bradley has a different take on interest.
The trouble starts when the government gives the banks exclusive access to the money, but then it gets terribly wrong because bankers take advantange of this monopoly by charging INTEREST.
So, the whole system expects you to pay in CASH; but in order to get some CASH, you have to pay more CASH, a.k.a, INTEREST!. You simply have no access to cash without interest!
So of course, once they see that you need some cash badly, i.e., you're shopping around and intend to borrow boatloads of money, they lower your credit rating so they can charge more interest!
You're right, Fred-- it'seconomic discrimination.
We want economic justice, for a change."
You decide what makes sense to you.