Every year thousands of Americans make mistakes that show up on their credit report. This means that thousands of Americans lose their chance to qualify for loans and sometimes mortgages. According to one of the leading credit reporting agencies it is estimated that over 70% of Americans have low credit scores or no credit scores at all. This makes it almost impossible to buy cars, homes, be approved for loans, rent apartments, get a mortgage and sometimes even get employment.
Currently credit reporting agencies hamper the growth of the economy by denying people with low credit scores and no credit scores the opportunity to develop a credit history. This is a very serious problem, however, one that can be easily resolved. The solution is to include additional information that includes data pertaining to the credit history. By including this information it would enable the unscoreable the opportunity to buy homes, cars, get loans and mortgages and even jobs.
A good example is the Vantage Score. This is an all inclusive credit scoring system that includes everything about a person’s credit history such as loan payments, utility payments, rental payments etc. Having a low credit score or no credit score is not just with a few Americans. It’s been estimated that over 40% of Americans have no credit score. Research has indicated that over 70% of Americans with no credit score could benefit from an all inclusive credit report. By showing utility payments and other positive reports could give these people the opportunity they deserve to buy a home or a car.
It would be more than just giving deserving Americans the opportunity to live the American dream it would also help stabilize our economy as well. However, because of the current credit reporting guidelines millions of Americans must rely on predators such as pay day loan organizations and other high cost financial institutions to do business. These same Americans pay out billions of dollars for high cost fees for short term “payday” loans. This puts an enormous strain on their budget which makes it difficult to buy food, pay rent and take care of emergencies. If they could have the opportunity to benefit from an all inclusive credit history they would have the opportunity to save money while taking advantage of all the opportunities other Americans appreciate.
Credit reports that show everything that happens in an individual’s financial life would help to explain when they have derogatory credit remarks on their credit reports. It would give every American the opportunity to show documentation of positive payments instead of trying to verbally explain when they are trying to apply for a loan to buy a car or home. This is not only the perfect solution for unscoreable Americans but it is also the solution to a hurting and sometimes unstable economy. It is our nation’s responsibility to provide ways for each and every American to own a home, own a car, and get the job they so richly disservice and should have.