Missy
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To prove your responsibility of how you pay your debts |
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SPIFIMAN1
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Credit reports are kind of like report cards when we were in school only they show how well you have managed your financial responsibility rather then your studies.
All loans are based on risk. The reason we have credit scores and history's is so potential lenders can look and see how we have paid our other loans when they are looking at our applications. Without this, they would have nothing to base their decisions on. |
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Crunchy Sweet
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So companies that want to give you credit have an idea if you are worth the risk.
What I don't like about it is that they have an odd way of coming up with that number.
Sometimes they use only the score and that sets people up for failure. My 20 year old son who is unemployed has a high credit score because he has never had a credit card. He applied for one and got it for 3000.00 without an income!!! How do they expect to get their money back with interest if they give credit to an unemployed person? |
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tlimsisnw7
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it is a tracking system, to see whether you are worthy of paying when you borrow. |
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marissaklump2004
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so that way when you go to buy an item such as a car they will see how much of a percentage rate they will give you, the better your credit score the lower pecentage rate you pay. |
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Ashley
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To know what kind of credit a person has and so the banks know what to qualify people for. |
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♥ Mary ♥
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I agree with the statement about how it is really dumb and they are just trying to make money. A lot of people (myself included) have stuff on their credit cause of medical bills. And for some reason they consider you a risk for that too now a days. more than half of what is on my credit report is a $2,500 DENTAL bill. Now mind you that I had insurance, but had to have surgery on a broken jaw. What was I gonna do, walk around with a broken jaw? So, they put it on my credit report where I now get denied credit cause of it. |
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firefiter
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the same reason we need locks, doors, fences......some people don't pay their bills. This causes the lender to lose money. Lender's want to ensure that you'r going to pay back that loan. Credit scores show your credit worthiness, compiled from your payment history, your debt to income ratio, figuring in late payments, charge offs, or nonpayment. If everyone in the world did what they were supposed to, we wouldn't need credit scores. Just like we wouldn't need locks on our doors, fences around our yards, car alarms on our vehicles. The actions of the few screw it up for everyone. |
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chileaug l
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We need credit scores to check whether we have debts outstanding on our credit cards or loans.
Should your credit score is low, you will have difficulty borrowing money from bank or take out a HP on a new car etc. |
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vengence
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To further separate the social classes. To discriminate. For other to superior and make others feel inferior. |
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shadowcat_54321
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If u mean the points of Yahoo anwsers,I can tell u that...
If there wont be any score then nobody would ever answer something they would just put qyestions cuz if ure score goes to 0 u cant put questions anymore.
And ure probably asking why u lose 5 for a question and get only 2 for a response...its just to become more then just 1 answer...u dont understand?
look if some1 put a question ,he will probably want to get the points back so he will response 2 or 3 times before putting another question.so thats the point ...if peaple loses more points then receive,they have to answer more then ask so every body receives more answers .
I hope u understud wath I mean... |
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GRUMPY1LUVS2EAT
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It's just another way to put my square peg in a round hole.... |
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∞infiniti∞
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It is just another way for the credit bureaus to make money off of consumers. A few years ago a company would pull your credit report and determine the risk themselves. No need to pay for a credit score.
What risk a lender takes is mostly determine by the economy. Therefore, credit score have in reality little or no meaning. |
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Hello xoxo
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Because it's easier than counting money and coins.
[edit]
lol. chris hansen... is that really your name |
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