For decades whenever we applied for a business loan, credit card, car loan, mortgage or any type of credit, the three repositories issued a fico score. These credit scores determined the interest rate we paid. Some of us paid dearly with higher rates and terms based on the "In God We Trust Credit Bureaus".
After decades these repositories now have changed their minds and a new formula once again will impact our fico scores. The new formula is a top secret like the old formula.
I did uncover one element which has changed... Under the old formula if borrowers had a higher amount of unused credit card limits it increased their scores, giving them favorable rates & terms. Those that did not meet that criteria paid a higher rate. Under the new formula that has been reversed, if a borrower has multiple unused credit card limits, the score will be reduced.
I think a class action lawsuit should be filed by all the borrowers which were punished for decades paying higher rates because they deemed it so.
Further, the banking industry has taken advantage of us for the last century. We as borrowers should be aware of the formula so we may be able to improve our scores and perhaps under The Freedom of Information Act we may able to do so.
Does the Townsqaured community lawyers or other members in the group have any opinion on this?
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