How Far Do You Know About Credit Rating

Impacts of Credit Rating
Not knowing how "Credit Rating" works and its implications on your financing transactions can cost you several thousands of dollars over time. Granting that you know, still you wont be able to escape its "claws" unless you know how to navigate the playing field laiden with heavy " mines".

Even corporations, organizations and countries regardless of size are affected by "Credit Rating" in terms of millions to billions of dollars. Not withstanding their knowledge and understanding about Credit, they still fall as hapless victims of circumstances so much so that the moment they fall, the harsher treatment they get, and the helping hand is withdrawn instead of getting extended.

I believe at this time, you'd be tempted to say--what can we do? Its been there since time immemorial., and who are we to change it?

I understand that. Thats a common reaction to expect. " That's how movies are made". Fine, but at least, let;s see the "bloopers".

A Great Human Invention
This credit rating thing is one of the many great inventions of mankind that dwell on opportunism and greed against the helpless and unsuspecting victims, and yet it is more common and widely adopted in highly developed societies of the world.

More often than not, you get hit first before you even come to know it exists, and ironically, despite the whipping, it seems we never learn because we let ourselves continue to be ignorant of its real and deep ramifications.

Do We Have The Answer?
Have you dared asked anyone to explain how those "Credit Scores" are made, or have you done sufficient research about it.

I myself have asked many people whom I thought are knowledgeable about the subject. I have spent hours and days doing research on the internet, and have visited the web sites of the so called " Credit Rating Bureaus. However, I still havent found the real answers other than knowing what goes into the scoring, what are the implications of the credit scores and a general guide on what to do to manage the scores.

What I've been looking for are the specific values of each factor that goes into the rating so much so that I would be able to do a parallel calculations of a specific "Credit Score". Example, my own score from these rating bureaus.

A Few Annoying Realities (bloopers)

1. It is said that accessing ones credit record affects the Credit Score depending on the nature and frequency of the accesses made. That being so, why would the banks and lending institutions normally demand free and unlimited access to a prospective borrowers credit record. Worse, no one could explain exactly how much point does each particular access affect the score. ( Anyone who has the answer, please help us).
   
2. Most of us may be aware now that the more access ones credit record has, the lower the credit score gets, and the lower the credit score is, the higher the interest rate that the bank and financing institution will charge. Doesnt it seem to be self-serving for the bank and financing institutions to demand free access to the credit record even just for pre-application inquiry.
   
   ( Note: Knowing this implication, I tried bringing a printed current report on my credit from all the credit bureaus as an alternative to opening my credit file while I was just canvassing for competitive mortgage interest rate but to no avail. I was told that it is the bank policy for them to open credit record themselves--wheow).
   
3. For someone who has yet to build a Credit History, it is common for banks and financing institution to decline his/her credit application on the ground of not having enough credit record. Confident of getting a good credit as you did from where you originally came from, you continue shopping for lenders ( for credit card, line of credit, car loan or housing loan) not knowing that you are now headed to building a poor or bad Credit Record. By the time you realize it or by the time you finally find one who is willing to lend you, the interest rate you'd get would already be higher simply because the credit record you built is no longer that good. Ironical isnt it? Do you think this happens by accident, by sheer circumstance, or by some form of grand design?

Please post your comment or share your experience. It pays to know the real score as to how far we know about this monumental subject as Credit Rating or Credit Score.