Chapter Nineteen
Circumstances Mean Squat.
Why Not Measure Character?
Page 1 of 14
What's interesting about the five Credit Killers listed previously is that they have nothing whatsoever to do with a person's character. They ONLY measure circumstances. So, our credit scoring models really do nothing to measure how honest or trustworthy or good a person may be. They simply measure the stuff that's happened to a person. How can the stuff that's happened to a person be a basis for grading their good name?
Right now, the credit system measures just a few things. In order to give you a credit score, the system tracks and measures:
- The number of credit accounts you've had.
- How long you've had credit.
- How many times you've been late.
- How much you owe compared to how much credit you have.
- How many times you have applied for credit in the last while.
- And, the number and kinds of super-bad listings (collections, bankruptcy, etc.).
The purpose of credit scoring and credit reporting is very simple: it's to decide whether or not you can be trusted with credit (and how much to give you). In fact, nobody would dispute that definition. In order to figure out whether or not you can be trusted, ONLY the six things listed above are considered. Of all the thousands of character traits, facts about your life and facts about your history that could be considered, the credit system considers only those six.
- Credit Revolution: Path of the Smart Consumer
© 2007 John C. Heath, Esq., Dr. Randy Padawer, Jayson R. Orvis. All Rights Reserved.
Published by Far Cliffs Multimedia, LLC
More information about fixing your credit
What does it mean to fix your credit?I ordered them, now how do I fix my credit report?
Fixing Your Becomes Necessary in a Broken Credit System
*Important: While the testimonials and other information on this website may be exciting, Lexington Law promises only to perform the steps we've agreed to in each client's case and to charge each month only for steps already completed. As with any legal work, no outcome is promised. Your results will vary. **The number of items removed represents the combined removals for all three credit bureaus. For example, if a single questionable negative item is removed from all three credit reports, it is counted as three separate removals.
© 2010 Lexington Law®. All rights reserved. John C. Heath, Attorney at Law, PLLC, d/b/a Lexington Law. Lexington Law is a group of law firms that may also be referred to throughout this site as "Lexington," "Lexington Law Firm," "we," "us," or "our firm". The number of items removed represents the combined results of the group.