A very interesting report in today's Strib about some unsavory Internet based businesses that provide quick fixes for consumer credit woes. (Check it out HERE.)
While the practice they outlined, basically allowing people with poor credit to piggyback on the cards/good credit history of other users, is not illegal (yet) it does show the depths some people are willing to go to "beat the system." But can you blame them?
Count me among those who feel the credit system in this country is seriously flawed at best and borderline class warfare at worst.
Think about it - people who have worse credit due to less income or high debt to income ratios are required to pay more for credit. Meanwhile, those who are comfortable get the best rates and pay a lot less.
I'm all for rewarding people who have maintained excellent credit, but at some point there has to be some leveling of the playing field here. People with excellent payment history but not enough credit lines are also penalized with higher rates. So are those who are self-employed or work as freelancers.
As the Fed seeks tighter restrictions on lending it seems to me that people who need credit the most will be the least likely to get it.
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