You can work your hardest to pay your bills and keep your credit score afloat, but you may still deal with a bad credit score. That’s not fair, is it? This is because the credit bureaus, creditors, and collection agencies are all working together to lower your credit score!
This may seem like a huge conspiracy theory, but stick with me. The credit industry’s main goal is to make a profit. How do they make a profit? By sinking your credit score! Let me break it down for you.
They Make Money off Bad Credit
The main players in the credit industry are working together, naturally. Creditors—like those exciting advertisements promising a new credit card with heaps of benefits—make money when you owe money. How? With interest! The more money you owe, the more money they make.
Creditors buy data from credit bureaus to find who is more likely to spend more and get themselves into debt. The more debt their customers have, the more money they make! They don’t care much about people with low debt who pay their bills, because that doesn’t earn them money. Instead, they actively seek young or messy spenders to make money from. Seems sketchy, right? That’s because it is!
They Aren’t Afraid to Break the Law
The credit industry is notorious for sprinkling unnoticeable mistakes throughout credit reports to purposefully lower credit scores. A lower credit score brings a higher interest rate. What does that mean? More money for creditors!
This practice is illegal, so by law they are required to correct any mistakes you find. Don’t expect it to be easy, though. You will have to jump through hoops to get your credit report cleaned up. Even with the hoops, it is worth it. You don’t want to pay extra due to shady creditors.
Don’t let it Bring You Down!
Even if you are doing everything right, your credit score can plummet as a result. Why is that bad? Because almost everything depends on that score! Want to buy a house? You need a good credit score. Want to lease a car? You need a good credit score. Want insurance? You need a good credit score.
A good credit score tells lenders you won’t leave them high and dry. They want to know you are a responsible borrower. This doesn’t always mean they will deny you. In fact, they benefit from your bad score. Instead of denying you, they may give an incredibly high interest rate that you will never be able to keep up with. Nobody wants that!
Be aware of the credit industry scam, but don’t let it bring you down. Check your credit report regularly, and stand up for yourself! You deserve a good score! If you need help with the process, give us a call. We are here for you and have been fighting the credit industry for years. Get in touch today!