The entire "credit reporting system" is flawed beyond all common sense. Example: I showed up on the "credit radar" 30 YEARS ago. In that time, I have had the basics (credit cards) to the more stringent home mortgage. However, if you look at the "age" of my credit, it reflects 4.5 years (deemed "fair" by Experian/Equifax/TransUnion). Thus, my credit score is rated, in part, as if I was my 25 year old daughter. It isn't as if the agencies don't have the data by which to reflect my credit history correctly, they just don't deem it important (despite all accounts, some in the 6-figures, that were paid on time and several paid off before their contract maturity date) UNLESS we are talking about a $300 Kohl's card I had a late payment on. Once. THAT they have lingering on like a cancer. It doesn't matter that the account was immediately brought current and then paid off entirely a month later. Score dropped 65 points for that late payment, gained 2 points when it was paid off. Which brings up another flaw. If I open an account (you get good human points if your credit portfolio is "diverse) then the age of my credit history is reduced and I lose points. If I close an old account, I lose points even though it has never been late, reduces my D/I ratio, etc. Then, these agencies score you on an entirely different "model" from auto finance and mortgages. Lastly, but certainly not all inclusive, are the hoops you have to go through to get something corrected on your file. They are quick to penalize you, but excruciatingly slow when it comes to correcting an error they have confirmed IS an error. Example: GMAC made an error which, when they reported it on my file, plummeted my score almost 100 points. It took each agency over 6 months to correct it, and despite my not having any late payments/closed accounts/new lines of credit and in fact, my debt ratio dropped during that time, when the error was removed from my report? My score only improved 35 points.
Bottom line here is this: If any other business was as inept in their practices as the "Elite Three" (aka: Judge/Jury/Executioner), they would be out of business.
