It Looks Like a Great Big Scam
So I was mad at Experian for the stupidly low credit score they gave us that cost us a refinance on our mortgage and I went on a bit of a rant yesterday, but then I started digging deeper and found a great big SCAM.
The credit scoring system is the same for everyone "TransUnion, Equifax and Experian." TransUnion and Equifax usually are within a couple points of each other for your score, but Experian is notorious for being way lower. It appears its intention is to get Experian more business than the other credit reporting agencies. It's also a big money maker for the finance companies, from homes to cars to whatever you want to buy, because of Experian pulling a scam it will cost you more money. I'll take it apart piece by piece.
The finance companies want you to have the lowest score possible and still be credit worthy. Let's say you have a deal for zero percent financing on something. What most of you don't realize is that depends on you having almost perfect credit. So you go in and find out you don't qualify and have to get a loan with some sort of interest rate. You were just scammed by both the credit companies and Experian.
In order to get those low or zero interest rate deals you need a credit score of at least 780 or higher. So you look at TransUnion and Equifax and both of them have you at 790, but Experian will have you at a 710. The credit company will either take the three scores and give you a 750 score or just take the lowest score, either way you've just been scammed and will end up paying more because of it.
So why does Experian have your score lower? Because they will make more money by cheating you. The credit companies, want to know the lowest score so they can make more off you and they know Experian always has the lowest score, so they will pay for Experian's numbers and not even use TransUnion or Equifax. Then the credit companies, that we bailed out, make more money by charging you higher interest rates. So even though the credit rating system should be somewhat uniform, it's not because of money, your money.
This scam touches every American, every day. Even if you don't go to finance something, it will effect you some other way because someone got hosed by the erroneous credit score from Experian. There is no reason for Experian to have lower credit scores except greed on their part.
I tried reaching out to Experian and got a B.S. answer about how this and that goes into figuring out my credit score, but no answer to my question as to why, when they have the same criteria, their scores are so much lower than TransUnion and Equifax. If Experian really goes by the same rules the other credit reporting agencies go by, then their scores would be within a few points of the others.
I think we need to make it illegal for Experian to do business in Idaho until they quit making our credit scores intentionally low, just to make more money. If you manipulate other businesses you would be arrested and brought up on charges, so why isn't this happening with both Experian and the credit companies that rely on their erroneous scores? If you know anyone in the state legislature, let's put Idaho on the map protecting consumers. Your ability to buy a home or car depends on it.
So is this new information to you? What are your thoughts?