I was reading the news this morning and it caught my eye that free checking is going the way of the Do Do bird. That banks are looking for new sources of revenue. Then I read about how people are going to have to pay whether they want to or not. When I consider how people even get the credit for loans they need to further their goals, is it any wonder that the economy is floundering?
The whole credit rating system we currently have is an absolute farce because it doesn’t necessarily reflect how responsible you are NOW. It can hold you slave to youthful indiscretions. It can also keep you from furthering your goals and also from prospering. The current credit rating system, in my opinion, is perhaps the #2 reason why our economy is floundering. Banks use it to force us to accept higher interest rates (which makes no sense if your income is already limited) IF they even give you credit at all.
The President doesn’t understand why people are not investing as much but it doesn’t take a genius to see that good, hard working people are simply not able to get the home or auto loans they so desperately need. Forced to spend even MORE money on lower quality good ans services. Add to that all the identity theft that is ruining the financial lives of innocent victims and you have an impossible situation to get out of.
I believe that the BEST way, at this point, to jump start the economy and actually HELP America, is to either abolish the current credit rating system or overhaul the whole system.
My 2 cents worths.