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can I opt out of credit agencies?
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this post was submitted on 23 Sep 2024
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Privacy
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If you have a SSN, you have a number.
Well I totally get this entire system is mismanaged horribly designed from the start not even designed for this from the start, exetera....
Having some kind of standardized way of stating someone else's trustworthiness when it comes to money lending it's something that's just inherit to capitalism as long as you have capitalism simple as that, even if they don't call it a credit score.
It is important to note that while a FICO score is roughly equivalent to "trustworthiness", the three credit agency scores (Equifax, TransUnion, and Experian) are NOT meant to reflect your trustworthiness directly. Rather, they are specifically designed to inform lenders of your profitability for them.
It's an important distinction because having a an outstanding payment history alone won't improve these scores, if you aren't utilizing available credit and maintaining some running balance with lenders.
Basically, if you're just going to borrow money and never pay any interest on the loans, you aren't actually a source of profit and therefore aren't a desirable customer for lenders and creditors
Yep, my score went down when I paid off my car way earlier. So I get penalized for actually being better with managing my money, because they earn less in interest.
The word you're looking for is etcetera. And unless you plan to return to community banks where you have to get to know the local banker to get a mortgage, you need this system.
I'm not sure how tying this to capitalism makes sense...lending is a risk, they are betting that you'll remain employed and will continue to pay them - there is a chance you won't and you pay a premium to get money now. Communist countries also have this system, but it is more centrally controlled by the State.