Persuasive Essay

Unfair Use of Credit Scores Although a reference sum does show lenders a souls retribution history and debt, these scores should not be the only figure in determining whether or not some whizz is a potential risk. Credit scores can be very(prenominal) informative but they should not be the only cipher when a lender is trying to determine a mortals risk. The Experian (2010) website says negative items can stay on 1s assurance report, negatively affecting his or her ascribe score, for s all the same years, and bankruptcies for 10 years. That means if one defaulted on a quotation card five years ago, and has since been on while with payments, the defaulted account is still going to affect his or her score negatively. The Quicken loans (2010) website states that approximately 15% of a individuals credit score is made up of the distance of that persons credit history. This means that if one has not been use credit for that long, it can negatively affect his or her score, even if a good amount of the payment history is good. It sure as shooting does not seem fair practice to decide that betwixt two people, both of whom have the same payment history, one is less risky than the other based on the length of time they have been using credit.

For example, say a person finds him or herself in a situation that could turn into a serious debt issue, and decides to cancel one of their credit cards that has a nothing balance. According to Simon (2010) ..you carry $2,000 in debt across several(prenominal) cards with a combined total of $10,000 in purchasable credit lines. Then you decide to close that Citi card, which has a zero balance, but a $5,000 line of credit. That leaves you with half of your original getable credit. As a result, your existing $2,000 in debt suddenly makes up a much larger portion of the $5,000 in credit you still have available -- impacting your credit utilization and potentially your credit score... (canceling a card can hurt your credit score, para. 2) That means that doing the responsible thing when... If you want to get a full essay, order it on our website: Orderessay

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