Recent years have seen a lot of backlash against the credit scoring industry.
Since the recession, many consumers are reducing their reliance on credit when it comes to making purchases. However, the result hasn’t been what many expected.
Canceling accounts and swearing off credit can impact a credit score, sending it lower. Not a good thing.
If you don’t plan to borrow money, it may not seem like such a big deal. However, even if you don’t borrow, your credit report and your credit score might impact your financial situation.
Some insurers use your credit score as a factor when setting your premiums. Landlords might check your credit when determining how much to charge you for a security deposit. Cell phone and Internet service providers often run credit checks before setting you up. Even a potential employer might ask for permission to view your credit report.
Many consumers who feel as though they are more responsible than ever are discovering that the credit scoring industry is just interested in encouraging, well, behaviors that involve credit.
But consumers feel that if a credit report and score are going to be measures of overall financial responsibility, non-credit payment items should be added to the list.
One of the items of interest right now has to do with adding utility payments into the equation.