Credit reporting agencies are some of the most powerful institutions around today. It is these agencies which are empowered to make decisions that does impact every aspect of life today. Although they have been around for over a half century they have become one of the few instruments that can hinder economic growth or put the financial tools together to improve and grow the economy in the United States. In many instances lately it is these credit agencies that have took it upon themselves to render millions of Americans unable to have the ability to obtain the financial resources to improve their own financial conditions. One bad entry on your credit report can cripple your borrowing power for over ten years. Even worse, credit reports are now too often requested by employers, landlords and insurance companies. If you have credit scores that don't meet the criteria set by the banks, your prospective employer, the insurance company, or a landlord it more that triples your chances that you will fall a vicious cycle of very limited possibilities. On top of this is the fact that one out of every four credit reports contains serious errors like: debts wrongfully listed as delinquent, closed accounts listed as open, debts that belong to other people with the same name, et cetera. In essence, it is these credit bureaus that have the authority and too much power over the lives of everyday Americans to put the United States on the fast track toward economic stability.
In today's realm of reality it is basically a necessity to have a credit card, land a job, qualify for a place to live, able to insure your car, and just about every necessity for living all too often hinges on the score issued by these credit bureaus. One of the biggest reasons why our economy is still floundering is because these credit agencies have issued scores to millions of Americans that don't meet the rising criteria set by banks, and others that look at individuals credit reports to make their decisions whether to hire, grant a mortgage, issue a credit card, obtain insurance, or any institution or business that uses credit as part of doing business. When so may people are denied from making that purchase or land that job is a major obstacle in moving the economy forward. It is these agencies that have made it very improbable for millions of Americans that are still reeling from the past banking and mortgage crisis to fully recover enough to ensure their financial stability and for that matter improve the overall US economy.
Remember the "good old days" as my father recalled them. The days when banks and saving and loan institutions much like George Baily in " It's A Wonderful Life" debated the virtues of having a savings and loan compared with the Potters who controlled those too big to fail banks. The days when any individual who needed a loan, a mortgage, and capital to start or expand a business was based solely on character, a sound business plan, their income, ability to repay, and collateral for reassurance to secure that loan. There really wasn't the need to invoke credit bureaus when the institutions used these requirement to issue that capital.
Even though these credit bureaus started out with good intentions they have become too influential in enabling the wealthy to become wealthier. This is one of many factors that has increased the wealth disparity gap. A gap that is already too wide. A wealth disparity gap that has become so wide it has only hindered economic recovery. This system now only favors the top 1% and the largest corporations while leaving the rest of the 99% having to pay more in interest rates if they are granted credit. More than likely continue to lose out on that job, are denied insurance, and can't get enough capital to start or expand a business all because of the criteria that has been set favoring the wealthy.
It has become more evident in the past twenty years that when the majority of individuals and small businesses having to pay more in interest rates or receiving not enough capital to begin has stifled economic expansion. When businesses have too little capital to ensure that they will have the ability to pay back that loan has only intensified the current economic crisis. With this happening the wealth disparity gap only gets wider between the top 1% and the rest of the 99% of the population.
What is needed today is to reform these agencies. With the advent of the Internet they do an invaluable service in keeping track of identity theft but too often the scoring system used and the criteria set by business, employers, banks and others who seek credit reports must be realigned to equalize the playing field so that everyone get a fair chance to improve their financial and economic future. Only when we narrow the wealth disparity gap and more individuals are able to have the ability to secure credit scores that don't favor the top 1% will the United States stabilize and secure their economic future.
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