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And, while there are HUGE problems with the way we compute credit scores, one of the factors is simply how much credit you have available, and how much of that
by kbelder 5y ago
And, while there are HUGE problems with the way we compute credit scores, one of the factors is simply how much credit you have available, and how much of that is used. If Wells Fargo is ending these credit lines, it will obviously reduce the scores, and there's no real way for it not to.
They can't tell Equifax to pretend their customers still have $100,000 credit lines, when they don't.
- toomuchtodo 5y agoIt’s almost as if you need a law or regulation to ensure credit lines closed through no fault of the borrower doesn’t poorly reflect on their credit file. Wells customers impacted by this should file a CFPB complaint, get the ball rolling through regulator visibility.
- acchow 5y agoOr just let the market realize that the credit score is not really that relevant or accurate. Which seems to be happening already. It's just one of many data points that go into your file when pricing out a loan.
- toomuchtodo 5y agoThe market can remain irrational while large cohorts suffer due to disinterest in solving the problem more rapidly. There is a reason we regulate financial services in the US.